Verizon Communications (NYSE:VZ) Shares Up 0.7% – Still a Buy?

Shares of Verizon Communications Inc. (NYSE:VZ) shot up 0.7% on Wednesday . The stock traded as high as $42.22 and last traded at $42.22. 1,632,885 shares were traded during trading, a decline of 91% from the average session volume of 18,479,725 shares. The stock had previously closed at $41.93.

Analyst Ratings Changes

Several research firms have issued reports on VZ. Scotiabank increased their target price on Verizon Communications from $46.50 to $47.25 and gave the stock a “sector perform” rating in a research report on Friday, October 18th. TD Cowen raised their target price on Verizon Communications from $48.00 to $51.00 and gave the stock a “buy” rating in a research note on Tuesday, July 23rd. Royal Bank of Canada lifted their target price on Verizon Communications from $42.00 to $46.00 and gave the company a “sector perform” rating in a report on Monday, September 23rd. JPMorgan Chase & Co. lowered their price target on shares of Verizon Communications from $46.00 to $45.00 and set a “neutral” rating on the stock in a report on Tuesday, July 23rd. Finally, Raymond James boosted their price objective on shares of Verizon Communications from $44.00 to $48.00 and gave the company an “outperform” rating in a research note on Tuesday, September 24th. Nine analysts have rated the stock with a hold rating and nine have given a buy rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $46.37.

Verizon Communications Price Performance

The firm has a market capitalization of $176.97 billion, a P/E ratio of 18.20, a PEG ratio of 3.03 and a beta of 0.43. The business’s 50-day simple moving average is $42.98 and its 200 day simple moving average is $41.49. The company has a quick ratio of 0.62, a current ratio of 0.66 and a debt-to-equity ratio of 1.32.

Verizon Communications (NYSE:VZ) last issued its earnings results on Tuesday, October 22nd. The cell phone carrier reported $1.19 EPS for the quarter, topping analysts’ consensus estimates of $1.18 by $0.01. Verizon Communications had a net margin of 7.30% and a return on equity of 20.05%. The company had revenue of $33.30 billion for the quarter, compared to analysts’ expectations of $33.42 billion. During the same quarter last year, the company earned $1.22 EPS. The firm’s revenue was up .9% compared to the same quarter last year. Sell-side analysts forecast that Verizon Communications Inc. will post 4.61 earnings per share for the current year.

Verizon Communications Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, November 1st. Stockholders of record on Thursday, October 10th were paid a dividend of $0.678 per share. This represents a $2.71 dividend on an annualized basis and a dividend yield of 6.45%. The ex-dividend date was Thursday, October 10th. This is a positive change from Verizon Communications’s previous quarterly dividend of $0.67. Verizon Communications’s dividend payout ratio is 116.81%.

Hedge Funds Weigh In On Verizon Communications

Hedge funds have recently modified their holdings of the company. Gateway Investment Advisers LLC increased its position in shares of Verizon Communications by 15.4% during the second quarter. Gateway Investment Advisers LLC now owns 283,160 shares of the cell phone carrier’s stock valued at $11,678,000 after buying an additional 37,732 shares during the period. Cyndeo Wealth Partners LLC boosted its stake in Verizon Communications by 9.7% during the third quarter. Cyndeo Wealth Partners LLC now owns 202,521 shares of the cell phone carrier’s stock worth $9,095,000 after acquiring an additional 17,855 shares in the last quarter. Janney Montgomery Scott LLC grew its stake in shares of Verizon Communications by 2.9% in the 3rd quarter. Janney Montgomery Scott LLC now owns 2,058,443 shares of the cell phone carrier’s stock worth $92,445,000 after buying an additional 57,583 shares during the last quarter. Principal Financial Group Inc. raised its position in shares of Verizon Communications by 2.7% in the 3rd quarter. Principal Financial Group Inc. now owns 4,954,357 shares of the cell phone carrier’s stock worth $222,500,000 after purchasing an additional 129,171 shares during the last quarter. Finally, Harvest Portfolios Group Inc. boosted its stake in Verizon Communications by 3.3% in the 3rd quarter. Harvest Portfolios Group Inc. now owns 579,713 shares of the cell phone carrier’s stock worth $26,035,000 after purchasing an additional 18,346 shares in the last quarter. Hedge funds and other 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).