Verizon Communications (NYSE:VZ) Trading 1.1% Higher – Here’s Why

Verizon Communications Inc. (NYSE:VZ)’s share price rose 1.1% on Monday . The company traded as high as $39.95 and last traded at $39.83. Approximately 6,045,707 shares changed hands during mid-day trading, a decline of 76% from the average daily volume of 25,581,145 shares. The stock had previously closed at $39.39.

Analysts Set New Price Targets

Several research analysts have recently issued reports on VZ shares. KeyCorp downgraded shares of Verizon Communications from an “overweight” rating to a “sector weight” rating in a report on Thursday, October 24th. Tigress Financial reaffirmed a “buy” rating and issued a $55.00 target price on shares of Verizon Communications in a report on Thursday, January 30th. Scotiabank lifted their price target on Verizon Communications from $47.00 to $47.50 and gave the company a “sector perform” rating in a research note on Monday, January 27th. TD Cowen raised Verizon Communications to a “strong-buy” rating in a research note on Wednesday, January 15th. Finally, Argus upgraded shares of Verizon Communications to a “strong-buy” rating in a research report on Monday, January 27th. Ten research analysts have rated the stock with a hold rating, eight have assigned a buy rating and two have issued a strong buy rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $46.08.

Verizon Communications Stock Performance

The company has a current ratio of 0.63, a quick ratio of 0.59 and a debt-to-equity ratio of 1.21. The company has a 50-day moving average price of $40.44 and a two-hundred day moving average price of $41.54. The stock has a market capitalization of $168.99 billion, a P/E ratio of 9.70, a price-to-earnings-growth ratio of 4.11 and a beta of 0.45.

Verizon Communications (NYSE:VZ) last issued its earnings results on Friday, January 24th. The cell phone carrier reported $1.10 earnings per share for the quarter, missing analysts’ consensus estimates of $1.11 by ($0.01). Verizon Communications had a return on equity of 19.80% and a net margin of 12.99%. During the same period in the prior year, the company earned $1.08 earnings per share. On average, equities analysts forecast that Verizon Communications Inc. will post 4.69 earnings per share for the current year.

Verizon Communications Cuts Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, February 3rd. Investors of record on Friday, January 10th were paid a dividend of $0.6775 per share. This represents a $2.71 annualized dividend and a yield of 6.75%. The ex-dividend date was Friday, January 10th. Verizon Communications’s dividend payout ratio is presently 65.46%.

Insiders Place Their Bets

In related news, CEO Kyle Malady sold 11,085 shares of the stock in a transaction on Wednesday, January 29th. The stock was sold at an average price of $40.88, for a total value of $453,154.80. Following the transaction, the chief executive officer now directly owns 14,590 shares in the company, valued at $596,439.20. This trade represents a 43.17 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Over the last ninety days, insiders sold 39,085 shares of company stock worth $1,582,995. 0.03% of the stock is currently owned by company insiders.

Institutional Trading of Verizon Communications

A number of hedge funds and other institutional investors have recently bought and sold shares of VZ. SRS Capital Advisors Inc. lifted its holdings in shares of Verizon Communications by 145.2% in the fourth quarter. SRS Capital Advisors Inc. now owns 27,720 shares of the cell phone carrier’s stock valued at $1,109,000 after purchasing an additional 16,417 shares in the last quarter. Bailard Inc. raised its position in Verizon Communications by 2.9% in the 4th quarter. Bailard Inc. now owns 75,950 shares of the cell phone carrier’s stock valued at $3,037,000 after buying an additional 2,173 shares during the last quarter. IFG Advisors LLC lifted its stake in Verizon Communications by 9.8% during the 4th quarter. IFG Advisors LLC now owns 7,691 shares of the cell phone carrier’s stock valued at $308,000 after acquiring an additional 689 shares in the last quarter. Kohmann Bosshard Financial Services LLC purchased a new position in Verizon Communications during the 4th quarter worth $106,000. Finally, Smartleaf Asset Management LLC grew its stake in shares of Verizon Communications by 11.7% in the 4th quarter. Smartleaf Asset Management LLC now owns 43,568 shares of the cell phone carrier’s stock worth $1,725,000 after acquiring an additional 4,576 shares in the last quarter. 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).