Verizon Communications (NYSE:VZ) Stock Price Down 3.4% - Time to Sell?

Key Points

• Verizon Communications' stock price fell by 3.4%, trading around $38.44, significantly below its previous close of $39.80.
• Analysts have mixed ratings for the stock, with targets ranging from $44.00 to $50.50, and a consensus rating of "Moderate Buy."
• The company recently increased its quarterly dividend to $0.69 per share, reflecting a yield of 7.2% on an annualized basis.

Verizon Communications Inc. (NYSE:VZ - Get Free Report)'s share price traded down 3.4% during mid-day trading on Thursday . The stock traded as low as $38.39 and last traded at $38.44. 52,306,283 shares changed hands during mid-day trading, an increase of 141% from the average session volume of 21,668,957 shares. The stock had previously closed at $39.80.

Wall Street Analyst Weigh In

Several analysts recently commented on VZ shares. BNP Paribas Exane downgraded shares of Verizon Communications from an "outperform" rating to a "neutral" rating and set a $44.00 price target for the company. in a research report on Tuesday. The Goldman Sachs Group started coverage on shares of Verizon Communications in a research report on Tuesday, September 2nd. They issued a "buy" rating and a $49.00 price target for the company. Weiss Ratings reiterated a "buy (b-)" rating on shares of Verizon Communications in a research report on Wednesday, October 8th. Bank of America upped their price target on shares of Verizon Communications from $45.00 to $49.00 and gave the company a "neutral" rating in a research report on Tuesday, July 22nd. Finally, Scotiabank upped their price target on shares of Verizon Communications from $50.00 to $50.50 and gave the company a "sector perform" rating in a research report on Monday, October 6th. Three research analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating and thirteen have given a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $47.41.

Verizon Communications Stock Performance

The company has a market cap of $162.05 billion, a PE ratio of 8.96, a P/E/G ratio of 3.04 and a beta of 0.37. The company has a debt-to-equity ratio of 1.19, a quick ratio of 0.60 and a current ratio of 0.64. The stock's 50-day simple moving average is $43.05 and its 200 day simple moving average is $43.01.

Verizon Communications (NYSE:VZ - Get Free Report) last announced its quarterly earnings data on Monday, July 21st. The cell phone carrier reported $1.22 EPS for the quarter, topping analysts' consensus estimates of $1.19 by $0.03. The company had revenue of $34.50 billion during the quarter, compared to the consensus estimate of $33.47 billion. Verizon Communications had a net margin of 13.28% and a return on equity of 19.61%. Verizon Communications's quarterly revenue was up 5.2% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.15 EPS. As a group, equities analysts anticipate that Verizon Communications Inc. will post 4.69 EPS for the current year.

Verizon Communications Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, November 3rd. Shareholders of record on Friday, October 10th will be given a dividend of $0.69 per share. This represents a $2.76 dividend on an annualized basis and a yield of 7.2%. The ex-dividend date is Friday, October 10th. This is an increase from Verizon Communications's previous quarterly dividend of $0.68. Verizon Communications's payout ratio is currently 64.34%.

Hedge Funds Weigh In On Verizon Communications

A number of large investors have recently bought and sold shares of the company. Bulwark Capital Corp purchased a new position in shares of Verizon Communications in the 2nd quarter valued at about $25,000. Advantage Trust Co increased its holdings in shares of Verizon Communications by 549.5% in the 2nd quarter. Advantage Trust Co now owns 591 shares of the cell phone carrier's stock valued at $26,000 after purchasing an additional 500 shares in the last quarter. TruNorth Capital Management LLC increased its holdings in shares of Verizon Communications by 95.3% in the 3rd quarter. TruNorth Capital Management LLC now owns 625 shares of the cell phone carrier's stock valued at $27,000 after purchasing an additional 305 shares in the last quarter. 1 North Wealth Services LLC purchased a new position in shares of Verizon Communications in the 1st quarter valued at about $29,000. Finally, Accent Capital Management LLC purchased a new position in shares of Verizon Communications in the 1st quarter valued at about $30,000. Hedge funds and other institutional investors own 62.06% of the company's stock.

About Verizon Communications

Verizon Communications Inc, through its subsidiaries, engages in the provision of communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide. It operates in two segments, Verizon Consumer Group (Consumer) and Verizon Business Group (Business).

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