Verizon Communications (NYSE:VZ) Trading 2.1% Higher - Should You Buy?

Key Points

• Verizon Communications' stock price increased by 2.1% during mid-day trading, reaching $40.57 after a previous close of $39.75, with a trading volume exceeding the average by 4%.
• A range of Wall Street analysts have recently updated their price targets for Verizon, with estimates now between $43.00 and $49.00, reflecting a generally positive outlook with an average rating of "Moderate Buy".
• The company announced a quarterly dividend increase to $0.69 per share, resulting in a strong annualized yield of 6.8%, with the ex-dividend date set for October 10th.

Verizon Communications Inc. (NYSE:VZ - Get Free Report) shares shot up 2.1% during mid-day trading on Tuesday . The stock traded as high as $40.58 and last traded at $40.57. 22,272,391 shares traded hands during mid-day trading, an increase of 4% from the average session volume of 21,471,832 shares. The stock had previously closed at $39.75.

Wall Street Analyst Weigh In

Several research firms recently issued reports on VZ. Morgan Stanley boosted their price target on Verizon Communications from $47.00 to $48.00 and gave the company an "equal weight" rating in a research note on Tuesday, July 22nd. Wells Fargo & Company boosted their price objective on shares of Verizon Communications from $42.00 to $43.00 and gave the company an "equal weight" rating in a report on Thursday, July 10th. Royal Bank Of Canada boosted their price objective on shares of Verizon Communications from $45.00 to $46.00 and gave the company a "sector perform" rating in a report on Tuesday, July 22nd. The Goldman Sachs Group started coverage on shares of Verizon Communications in a report on Tuesday, September 2nd. They issued a "buy" rating and a $49.00 price objective for the company. Finally, Arete Research upgraded Verizon Communications to a "strong-buy" rating in a research note on Tuesday, July 8th. Three analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating and eleven have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $47.63.

Verizon Communications Stock Up 2.1%

The firm has a 50 day simple moving average of $43.41 and a two-hundred day simple moving average of $43.21. The company has a quick ratio of 0.60, a current ratio of 0.64 and a debt-to-equity ratio of 1.19. The stock has a market capitalization of $171.04 billion, a P/E ratio of 9.46, a PEG ratio of 3.00 and a beta of 0.37.

Verizon Communications (NYSE:VZ - Get Free Report) last released its earnings results on Monday, July 21st. The cell phone carrier reported $1.22 earnings per share for the quarter, topping the consensus estimate of $1.19 by $0.03. Verizon Communications had a return on equity of 19.61% and a net margin of 13.28%.The firm had revenue of $34.50 billion during the quarter, compared to analysts' expectations of $33.47 billion. During the same period in the prior year, the company earned $1.15 earnings per share. The company's quarterly revenue was up 5.2% on a year-over-year basis. Verizon Communications has set its FY 2025 guidance at 4.636-4.728 EPS. On average, equities research analysts expect that Verizon Communications Inc. will post 4.69 earnings per share for the current year.

Verizon Communications Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, November 3rd. Stockholders of record on Friday, October 10th will be issued a $0.69 dividend. This represents a $2.76 dividend on an annualized basis and a dividend yield of 6.8%. This is an increase from Verizon Communications's previous quarterly dividend of $0.68. The ex-dividend date of this dividend is Friday, October 10th. Verizon Communications's dividend payout ratio (DPR) is currently 64.34%.

Hedge Funds Weigh In On Verizon Communications

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Bulwark Capital Corp bought a new position in shares of Verizon Communications in the 2nd quarter valued at $25,000. Cherry Tree Wealth Management LLC raised its position in Verizon Communications by 71.8% in the first quarter. Cherry Tree Wealth Management LLC now owns 584 shares of the cell phone carrier's stock valued at $26,000 after purchasing an additional 244 shares during the last quarter. Garde Capital Inc. bought a new position in Verizon Communications in the first quarter valued at about $26,000. Advantage Trust Co raised its position in Verizon Communications by 549.5% in the second 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 during the last quarter. Finally, 1 North Wealth Services LLC bought a new position in Verizon Communications in the first quarter valued at about $29,000. 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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