Verizon Communications (NYSE:VZ) Trading Down 5% - Time to Sell?

Key Points

• Shares of Verizon Communications (NYSE: VZ) fell by 5%, trading at approximately $41.49, with volume spiking to 74 million shares, a 250% increase from the average.
• Wall Street analysts maintain a consensus rating of "Moderate Buy" for Verizon, with a target price averaging at $47.63, indicating potential for growth despite recent stock declines.
• The company announced a quarterly dividend increase to $0.69 per share, reflecting a 6.7% yield, with a payout ratio of 63.17%.

Verizon Communications Inc. (NYSE:VZ - Get Free Report) shares dropped 5% on Monday . The company traded as low as $41.35 and last traded at $41.49. Approximately 74,032,716 shares traded hands during mid-day trading, an increase of 250% from the average daily volume of 21,132,717 shares. The stock had previously closed at $43.67.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on VZ shares. The Goldman Sachs Group assumed coverage on shares of Verizon Communications in a report on Tuesday, September 2nd. They issued a "buy" rating and a $49.00 target price for the company. Arete Research upgraded shares of Verizon Communications to a "strong-buy" rating in a research note on Tuesday, July 8th. Weiss Ratings restated a "buy (b-)" rating on shares of Verizon Communications in a research note on Saturday, September 27th. Morgan Stanley lifted their price target on Verizon Communications from $47.00 to $48.00 and gave the stock an "equal weight" rating in a report on Tuesday, July 22nd. Finally, JPMorgan Chase & Co. lifted their price objective on Verizon Communications from $47.00 to $49.00 and gave the stock a "neutral" rating in a report on Tuesday, July 22nd. Three research analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating and eleven have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $47.63.

Verizon Communications Trading Down 5.0%

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 firm has a market cap of $174.94 billion, a PE ratio of 9.67, a price-to-earnings-growth ratio of 3.37 and a beta of 0.37. The stock has a 50-day simple moving average of $43.65 and a two-hundred day simple moving average of $43.35.

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, beating the consensus estimate of $1.19 by $0.03. The company had revenue of $34.50 billion for the quarter, compared to the consensus estimate of $33.47 billion. Verizon Communications had a return on equity of 19.61% and a net margin of 13.28%.Verizon Communications's quarterly revenue was up 5.2% compared to the same quarter last year. During the same period in the previous year, the business earned $1.15 earnings per share. Verizon Communications has set its FY 2025 guidance at 4.636-4.728 EPS. As a group, sell-side analysts anticipate that Verizon Communications Inc. will post 4.69 EPS for the current year.

Verizon Communications Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, November 3rd. Investors of record on Friday, October 10th will be issued a dividend of $0.69 per share. The ex-dividend date of this dividend is Friday, October 10th. This is a positive change from Verizon Communications's previous quarterly dividend of $0.68. This represents a $2.76 annualized dividend and a yield of 6.7%. Verizon Communications's dividend payout ratio is 63.17%.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in VZ. Brighton Jones LLC boosted its position in shares of Verizon Communications by 61.2% during the 4th quarter. Brighton Jones LLC now owns 43,986 shares of the cell phone carrier's stock worth $1,759,000 after purchasing an additional 16,704 shares during the period. Sivia Capital Partners LLC raised its holdings in Verizon Communications by 4.4% during the first quarter. Sivia Capital Partners LLC now owns 9,794 shares of the cell phone carrier's stock worth $444,000 after purchasing an additional 413 shares in the last quarter. UMB Bank n.a. grew its stake in shares of Verizon Communications by 6.8% during the 1st quarter. UMB Bank n.a. now owns 105,944 shares of the cell phone carrier's stock worth $4,806,000 after purchasing an additional 6,771 shares during the period. Revolve Wealth Partners LLC lifted its holdings in shares of Verizon Communications by 12.3% in the first quarter. Revolve Wealth Partners LLC now owns 7,656 shares of the cell phone carrier's stock valued at $347,000 after purchasing an additional 840 shares in the last quarter. Finally, Patriot Financial Group Insurance Agency LLC raised its holdings in Verizon Communications by 4.8% in the 1st quarter. Patriot Financial Group Insurance Agency LLC now owns 30,644 shares of the cell phone carrier's stock valued at $1,390,000 after acquiring an additional 1,412 shares during the last quarter. Hedge funds and other 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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