Verizon Communications (NYSE:VZ) Trading Up 1.2% - Time to Buy?

Key Points

• Verizon shares rose 1.2% on Wednesday, trading as high as $45.12 before settling at $44.29, with volume below its recent average.
• Analysts remain cautious overall: recent ratings were mixed, and the consensus view is “Hold” with a consensus price target of about $50.03.
• Verizon continues to appeal to income investors, announcing a quarterly dividend of $0.7075 per share, which works out to an annualized yield of about 6.4%.

Verizon Communications Inc. (NYSE:VZ - Get Free Report)'s share price traded up 1.2% on Wednesday . The company traded as high as $45.12 and last traded at $44.2860. 23,675,540 shares changed hands during trading, a decline of 19% from the average daily volume of 29,129,715 shares. The stock had previously closed at $43.78.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on the stock. Wells Fargo & Company started coverage on shares of Verizon Communications in a report on Wednesday, July 8th. They issued an "equal weight" rating and a $43.00 price target on the stock. BNP Paribas Exane decreased their target price on Verizon Communications from $46.00 to $44.00 and set a "neutral" rating for the company in a research report on Tuesday, July 14th. Weiss Ratings restated a "buy (b)" rating on shares of Verizon Communications in a research note on Friday, May 29th. Barclays dropped their price target on Verizon Communications from $47.00 to $45.00 and set an "equal weight" rating on the stock in a research report on Wednesday, July 8th. Finally, Morgan Stanley increased their price target on Verizon Communications from $49.00 to $50.00 and gave the stock an "equal weight" rating in a research note on Tuesday, April 28th. Nine research analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $50.03.

Verizon Communications Trading Up 1.2%

The firm has a 50-day simple moving average of $45.51 and a 200-day simple moving average of $46.15. The company has a quick ratio of 0.61, a current ratio of 0.64 and a debt-to-equity ratio of 1.38. The stock has a market cap of $184.92 billion, a PE ratio of 10.80, a P/E/G ratio of 1.06 and a beta of 0.26.

Verizon Communications (NYSE:VZ - Get Free Report) last released its quarterly earnings data on Monday, April 27th. The cell phone carrier reported $1.28 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.21 by $0.07. The company had revenue of $34.44 billion for the quarter, compared to analyst estimates of $34.82 billion. Verizon Communications had a return on equity of 19.25% and a net margin of 12.46%.The firm's revenue for the quarter was up 2.7% compared to the same quarter last year. During the same period in the previous year, the company posted $1.19 EPS. Verizon Communications has set its FY 2026 guidance at 4.950-4.990 EPS. Equities analysts forecast that Verizon Communications Inc. will post 4.98 earnings per share for the current year.

Verizon Communications Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, August 3rd. Stockholders of record on Friday, July 10th will be given a dividend of $0.7075 per share. The ex-dividend date is Friday, July 10th. This represents a $2.83 annualized dividend and a dividend yield of 6.4%. Verizon Communications's dividend payout ratio is currently 69.02%.

Hedge Funds Weigh In On Verizon Communications

A number of large investors have recently modified their holdings of VZ. Norges Bank bought a new position in Verizon Communications in the 4th quarter valued at $2,357,158,000. Bank of America Corp DE grew its holdings in shares of Verizon Communications by 15.4% during the 1st quarter. Bank of America Corp DE now owns 62,101,021 shares of the cell phone carrier's stock valued at $3,117,471,000 after purchasing an additional 8,289,877 shares during the last quarter. Bank of New York Mellon Corp grew its stake in shares of Verizon Communications by 31.2% during the fourth quarter. Bank of New York Mellon Corp now owns 31,584,162 shares of the cell phone carrier's stock valued at $1,286,423,000 after buying an additional 7,509,055 shares during the last quarter. State Street Corp increased its stake in Verizon Communications by 3.5% in the 4th quarter. State Street Corp now owns 222,951,399 shares of the cell phone carrier's stock worth $9,080,810,000 after purchasing an additional 7,461,335 shares during the period. Finally, Charles Schwab Investment Management Inc. increased its stake in shares of Verizon Communications by 5.3% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 116,570,816 shares of the cell phone carrier's stock worth $4,747,930,000 after buying an additional 5,851,715 shares during the period. 62.06% of the stock is currently owned by institutional investors.

Verizon Communications Company Profile

Verizon Communications Inc NYSE: VZ is a major U.S.-based telecommunications company that provides a broad range of communications and information services. Its operations span consumer and business markets, with core offerings that include wireless voice and data services, fixed-line broadband and fiber-optic services, and enterprise networking solutions. Verizon is headquartered in New York City and operates a nationwide wireless network that supports consumer subscribers as well as business and government customers.

The company's consumer products include mobile phone plans, unlimited data services, and Fios, its branded fiber-optic internet, television and voice service for homes and small businesses.

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