Verizon Communications (NYSE:VZ) Trading 0.5% Higher – Still a Buy?

Verizon Communications Inc. (NYSE:VZ)’s share price shot up 0.5% during trading on Thursday . The company traded as high as $42.24 and last traded at $42.21. 3,551,874 shares changed hands during 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

A number of equities research analysts recently commented on VZ shares. Royal Bank of Canada dropped their price objective on Verizon Communications from $46.00 to $42.00 in a report on Friday, January 24th. Sanford C. Bernstein started coverage on Verizon Communications in a research note on Tuesday, December 10th. They issued a “market perform” rating and a $48.00 price target for the company. DZ Bank raised shares of Verizon Communications from a “hold” rating to a “buy” rating and set a $40.00 price objective on the stock in a research note on Wednesday, January 29th. Wolfe Research boosted their price objective on shares of Verizon Communications from $50.00 to $51.00 and gave the company an “overweight” rating in a report on Friday, January 24th. Finally, UBS Group increased their target price on shares of Verizon Communications from $44.00 to $45.00 and gave the stock a “neutral” rating in a report on Friday, December 20th. Ten analysts have rated the stock with a hold rating, eight have issued a buy rating and two have issued a strong buy rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $46.08.

Verizon Communications Stock Performance

The stock has a fifty day moving average of $39.91 and a 200-day moving average of $41.61. The firm has a market capitalization of $180.05 billion, a P/E ratio of 10.33, a P/E/G ratio of 4.45 and a beta of 0.45. The company has a quick ratio of 0.59, a current ratio of 0.63 and a debt-to-equity ratio of 1.21.

Verizon Communications (NYSE:VZ) last issued its quarterly earnings results on Friday, January 24th. The cell phone carrier reported $1.10 earnings per share for the quarter, missing the consensus estimate 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 quarter in the prior year, the firm earned $1.08 EPS. On average, research analysts anticipate that Verizon Communications Inc. will post 4.69 EPS for the current year.

Verizon Communications Cuts Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, February 3rd. Shareholders of record on Friday, January 10th were paid a $0.6775 dividend. The ex-dividend date was Friday, January 10th. This represents a $2.71 annualized dividend and a yield of 6.34%. Verizon Communications’s payout ratio is currently 65.46%.

Insider Transactions at Verizon Communications

In other news, CEO Kyle Malady sold 11,085 shares of the company’s stock in a transaction that occurred on Wednesday, January 29th. The stock was sold at an average price of $40.88, for a total transaction of $453,154.80. Following the sale, the chief executive officer now owns 14,590 shares in the company, valued at $596,439.20. This represents a 43.17 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Insiders sold a total of 39,085 shares of company stock worth $1,582,995 in the last three months. Insiders own 0.02% of the company’s stock.

Hedge Funds Weigh In On Verizon Communications

A number of institutional investors have recently added to or reduced their stakes in VZ. Austin Private Wealth LLC grew its position in shares of Verizon Communications by 3.0% in the 3rd quarter. Austin Private Wealth LLC now owns 8,450 shares of the cell phone carrier’s stock valued at $379,000 after acquiring an additional 243 shares during the period. NCM Capital Management LLC grew its holdings in Verizon Communications by 1.4% during the fourth quarter. NCM Capital Management LLC now owns 18,390 shares of the cell phone carrier’s stock worth $735,000 after purchasing an additional 245 shares during the period. Cary Street Partners Asset Management LLC increased its position in Verizon Communications by 3.4% during the third quarter. Cary Street Partners Asset Management LLC now owns 7,628 shares of the cell phone carrier’s stock worth $343,000 after buying an additional 249 shares during the last quarter. First Personal Financial Services raised its stake in Verizon Communications by 0.3% in the third quarter. First Personal Financial Services now owns 91,092 shares of the cell phone carrier’s stock valued at $4,091,000 after buying an additional 250 shares during the period. Finally, Encompass Wealth Advisors LLC lifted its position in shares of Verizon Communications by 2.0% in the third quarter. Encompass Wealth Advisors LLC now owns 12,505 shares of the cell phone carrier’s stock valued at $562,000 after buying an additional 250 shares during the last quarter. 62.06% of the stock is currently owned by institutional investors and hedge funds.

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).