Verizon Communications (NYSE:VZ) Trading 0.5% Higher – Here’s Why

Verizon Communications Inc. (NYSE:VZ)’s share price shot up 0.5% on Thursday . The company traded as high as $42.24 and last traded at $42.21. 3,551,874 shares traded hands during mid-day trading, a decline of 84% from the average session volume of 22,527,803 shares. The stock had previously closed at $42.01.

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on the stock. DZ Bank upgraded shares of Verizon Communications from a “hold” rating to a “buy” rating and set a $40.00 price objective on the stock in a report on Wednesday, January 29th. Sanford C. Bernstein initiated coverage on Verizon Communications in a research report on Tuesday, December 10th. They set a “market perform” rating and a $48.00 target price on the stock. Scotiabank upped their price target on Verizon Communications from $47.00 to $47.50 and gave the company a “sector perform” rating in a report on Monday, January 27th. Deutsche Bank Aktiengesellschaft lifted their price objective on Verizon Communications from $40.00 to $42.00 and gave the stock a “hold” rating in a report on Friday, January 24th. Finally, Argus upgraded Verizon Communications to a “strong-buy” rating in a research note on Monday, January 27th. Ten research analysts have rated the stock with a hold rating, eight have given a buy rating and two have assigned a strong buy rating to the stock. According to data from MarketBeat.com, Verizon Communications currently has an average rating of “Moderate Buy” and a consensus target price of $46.08.

Verizon Communications Stock Performance

The company has a quick ratio of 0.59, a current ratio of 0.63 and a debt-to-equity ratio of 1.21. The stock has a market capitalization of $180.05 billion, a price-to-earnings ratio of 10.33, a price-to-earnings-growth ratio of 4.45 and a beta of 0.45. The stock’s 50-day simple moving average is $39.91 and its 200 day simple moving average is $41.61.

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

Verizon Communications Cuts Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, February 3rd. Stockholders of record on Friday, January 10th were paid a $0.6775 dividend. The ex-dividend date of this dividend was Friday, January 10th. This represents a $2.71 dividend on an annualized basis and a dividend yield of 6.34%. Verizon Communications’s dividend payout ratio (DPR) is presently 65.46%.

Insider Activity at Verizon Communications

In other Verizon Communications news, CEO Kyle Malady sold 8,000 shares of the company’s stock in a transaction on Monday, February 3rd. The stock was sold at an average price of $39.88, for a total transaction of $319,040.00. Following the transaction, the chief executive officer now owns 6,590 shares of the company’s stock, valued at approximately $262,809.20. This represents a 54.83 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders sold 39,085 shares of company stock valued at $1,582,995 over the last ninety days. 0.02% of the stock is owned by insiders.

Institutional Investors Weigh In On Verizon Communications

A number of institutional investors and hedge funds have recently made changes to their positions in VZ. Mainstream Capital Management LLC bought a new stake in Verizon Communications during the 4th quarter worth about $28,000. Capital Performance Advisors LLP acquired a new stake in shares of Verizon Communications during the 3rd quarter worth approximately $31,000. Legend Financial Advisors Inc. raised its stake in shares of Verizon Communications by 69.6% during the fourth quarter. Legend Financial Advisors Inc. now owns 780 shares of the cell phone carrier’s stock worth $31,000 after buying an additional 320 shares during the last quarter. Graney & King LLC acquired a new position in Verizon Communications in the fourth quarter valued at approximately $32,000. Finally, Compass Financial Services Inc bought a new position in Verizon Communications in the fourth quarter valued at approximately $33,000. 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).