Verizon Communications (NYSE:VZ) Trading Down 1% - Here's Why

Key Points

• Verizon Communications shares decreased by 1% to $43.35, with a notable 64% drop in trading volume compared to the average.
• Analysts have mixed ratings for Verizon, with target prices ranging from $43.00 to $49.00, resulting in an average rating of "Moderate Buy."
• The company recently declared a quarterly dividend of $0.6775, yielding 6.2%, and reported earnings of $1.22 per share, exceeding expectations.

Shares of Verizon Communications Inc. (NYSE:VZ - Get Free Report) were down 1% on Wednesday . The company traded as low as $42.88 and last traded at $43.35. Approximately 7,560,492 shares traded hands during trading, a decline of 64% from the average daily volume of 21,127,943 shares. The stock had previously closed at $43.80.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on VZ shares. Wells Fargo & Company upped their target price on Verizon Communications from $42.00 to $43.00 and gave the stock an "equal weight" rating in a report on Thursday, July 10th. JPMorgan Chase & Co. upped their target price on Verizon Communications from $47.00 to $49.00 and gave the stock a "neutral" rating in a report on Tuesday, July 22nd. The Goldman Sachs Group started coverage on Verizon Communications in a report on Tuesday. They set a "buy" rating and a $49.00 target price on the stock. Arete Research upgraded Verizon Communications to a "strong-buy" rating in a report on Tuesday, July 8th. Finally, Royal Bank Of Canada upped their target price on Verizon Communications from $45.00 to $46.00 and gave the stock a "sector perform" rating in a report on Tuesday, July 22nd. Three equities research analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating and eleven have given a Hold rating to the company's stock. According to data from MarketBeat, Verizon Communications currently has an average rating of "Moderate Buy" and a consensus target price of $47.44.

Verizon Communications Price Performance

The firm has a fifty day moving average price of $43.09 and a two-hundred day moving average price of $43.30. The stock has a market capitalization of $183.90 billion, a P/E ratio of 10.17, a PEG ratio of 3.41 and a beta of 0.36. The company has a debt-to-equity ratio of 1.19, a quick ratio of 0.60 and a current ratio of 0.64.

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

Verizon Communications Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, August 1st. Shareholders of record on Thursday, July 10th were paid a $0.6775 dividend. This represents a $2.71 dividend on an annualized basis and a yield of 6.2%. The ex-dividend date was Thursday, July 10th. Verizon Communications's dividend payout ratio is presently 63.17%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. FSC Wealth Advisors LLC boosted its holdings in shares of Verizon Communications by 35.2% during the 2nd quarter. FSC Wealth Advisors LLC now owns 5,683 shares of the cell phone carrier's stock valued at $246,000 after purchasing an additional 1,481 shares during the last quarter. Evolution Wealth Management Inc. bought a new position in shares of Verizon Communications during the 2nd quarter valued at about $620,000. Orion Porfolio Solutions LLC boosted its holdings in shares of Verizon Communications by 8.7% during the 2nd quarter. Orion Porfolio Solutions LLC now owns 242,262 shares of the cell phone carrier's stock valued at $10,483,000 after purchasing an additional 19,358 shares during the last quarter. Claris Financial LLC boosted its holdings in shares of Verizon Communications by 36.2% during the 2nd quarter. Claris Financial LLC now owns 8,238 shares of the cell phone carrier's stock valued at $356,000 after purchasing an additional 2,189 shares during the last quarter. Finally, MASTERINVEST Kapitalanlage GmbH bought a new position in shares of Verizon Communications during the 2nd quarter valued at about $4,091,000. Institutional investors own 62.06% of the company's stock.

Verizon Communications Company Profile

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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