Verizon Communications (NYSE:VZ) Trading Down 2.1% - Time to Sell?

Key Points

• Verizon Communications' stock price fell by 2.1% to $43.45 after trading as low as $42.94, with decreased trading volume of 11.3 million shares, significantly below its average of 21 million.
• Several analyst upgrades occurred recently, with JPMorgan Chase raising its target price from $47 to $49 and giving a "neutral" rating, while Arete Research upgraded the stock to "strong-buy."
• The company plans to issue a quarterly dividend of $0.69 per share on November 3rd, marking an increase from the previous $0.68, indicating a strong annualized dividend yield of 6.4%.

Verizon Communications Inc. (NYSE:VZ - Get Free Report)'s stock price dropped 2.1% on Monday . The company traded as low as $42.94 and last traded at $43.45. Approximately 11,339,179 shares traded hands during mid-day trading, a decline of 46% from the average daily volume of 21,065,186 shares. The stock had previously closed at $44.38.

Analysts Set New Price Targets

VZ has been the subject of several research reports. 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 research note on Tuesday, July 22nd. Arete Research raised Verizon Communications to a "strong-buy" rating in a research report on Tuesday, July 8th. Wall Street Zen upgraded Verizon Communications from a "hold" rating to a "buy" rating in a report on Saturday, July 26th. Bank of America increased their price objective on Verizon Communications from $45.00 to $49.00 and gave the company a "neutral" rating in a report on Tuesday, July 22nd. Finally, Royal Bank Of Canada lifted their price objective on Verizon Communications from $45.00 to $46.00 and gave the stock a "sector perform" rating in a research report on Tuesday, July 22nd. Three analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating and eleven have issued a Hold rating to the company. According to data from MarketBeat.com, Verizon Communications has an average rating of "Moderate Buy" and an average target price of $47.65.

Verizon Communications Price Performance

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 company's 50-day moving average is $43.20 and its 200-day moving average is $43.37. The stock has a market cap of $182.70 billion, a price-to-earnings ratio of 10.08, a price-to-earnings-growth ratio of 3.42 and a beta of 0.36.

Verizon Communications (NYSE:VZ - Get Free Report) last announced its quarterly earnings results on Monday, July 21st. The cell phone carrier reported $1.22 EPS for the quarter, beating analysts' consensus estimates of $1.19 by $0.03. Verizon Communications had a net margin of 13.28% and a return on equity of 19.61%. The business had revenue of $34.50 billion for the quarter, compared to analyst estimates of $33.47 billion. During the same quarter in the prior year, the business earned $1.15 EPS. Verizon Communications'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. Equities research analysts expect that Verizon Communications Inc. will post 4.69 earnings per share for the current fiscal year.

Verizon Communications Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, November 3rd. Stockholders of record on Friday, October 10th will be given a dividend of $0.69 per share. This represents a $2.76 annualized dividend and a dividend yield of 6.4%. This is a boost from Verizon Communications's previous quarterly dividend of $0.68. Verizon Communications's dividend payout ratio (DPR) is presently 63.17%.

Institutional Trading of Verizon Communications

Hedge funds and other institutional investors have recently modified their holdings of the stock. Kestra Investment Management LLC grew its holdings in Verizon Communications by 121.8% during the first quarter. Kestra Investment Management LLC now owns 176,531 shares of the cell phone carrier's stock worth $8,007,000 after acquiring an additional 96,931 shares during the period. BridgePort Financial Solutions LLC acquired a new position in Verizon Communications in the 4th quarter worth about $381,000. Element Capital Management LLC acquired a new stake in Verizon Communications in the 1st quarter valued at approximately $2,799,000. Meyer Handelman Co. raised its position in Verizon Communications by 7.4% in the 1st quarter. Meyer Handelman Co. now owns 1,110,948 shares of the cell phone carrier's stock valued at $50,393,000 after purchasing an additional 76,083 shares during the last quarter. Finally, Rempart Asset Management Inc. increased its holdings in Verizon Communications by 52.8% in the first quarter. Rempart Asset Management Inc. now owns 310,390 shares of the cell phone carrier's stock valued at $14,079,000 after purchasing an additional 107,200 shares during the last quarter. 62.06% of the stock is owned by institutional investors and hedge funds.

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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