Verizon Communications (NYSE:VZ) Shares Down 1.1% – Here’s Why

Verizon Communications Inc. (NYSE:VZ)’s share price dropped 1.1% during mid-day trading on Friday . The stock traded as low as $37.59 and last traded at $37.84. Approximately 7,529,659 shares traded hands during mid-day trading, a decline of 64% from the average daily volume of 20,921,047 shares. The stock had previously closed at $38.26.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on VZ shares. Bank of America increased their price target on Verizon Communications from $41.00 to $45.00 and gave the company a “neutral” rating in a research note on Thursday, September 26th. Tigress Financial lifted their price target on Verizon Communications from $52.00 to $55.00 and gave the stock a “buy” rating in a research note on Tuesday, October 1st. StockNews.com lowered Verizon Communications from a “strong-buy” rating to a “buy” rating in a report on Monday, December 16th. 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 research note on Monday, September 23rd. Finally, Sanford C. Bernstein started coverage on shares of Verizon Communications in a research note on Tuesday, December 10th. They issued a “market perform” rating and a $48.00 price objective on the stock. Ten analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company. According to MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $46.54.

Verizon Communications Stock Down 3.0 %

The firm has a market capitalization of $159.04 billion, a P/E ratio of 16.28, a price-to-earnings-growth ratio of 3.05 and a beta of 0.46. The business has a 50 day moving average price of $41.29 and a 200 day moving average price of $41.79. The company has a debt-to-equity ratio of 1.32, a current ratio of 0.66 and a quick ratio of 0.62.

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

Verizon Communications Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, February 3rd. Stockholders of record on Friday, January 10th will be paid a $0.6775 dividend. The ex-dividend date is Friday, January 10th. This represents a $2.71 annualized dividend and a dividend yield of 7.17%. Verizon Communications’s dividend payout ratio is currently 116.81%.

Institutional Investors Weigh In On Verizon Communications

Institutional investors and hedge funds have recently made changes to their positions in the company. Capital Performance Advisors LLP bought a new position in Verizon Communications in the 3rd quarter valued at $31,000. Accordant Advisory Group Inc raised its position in shares of Verizon Communications by 137.6% during the third quarter. Accordant Advisory Group Inc now owns 777 shares of the cell phone carrier’s stock worth $35,000 after acquiring an additional 450 shares during the last quarter. Legend Financial Advisors Inc. raised its holdings in Verizon Communications by 69.6% during the 4th quarter. Legend Financial Advisors Inc. now owns 780 shares of the cell phone carrier’s stock worth $31,000 after purchasing an additional 320 shares during the last quarter. MidAtlantic Capital Management Inc. acquired a new position in Verizon Communications in the third quarter valued at approximately $44,000. Finally, McClarren Financial Advisors Inc. boosted its position in shares of Verizon Communications by 762.6% in the 3rd quarter. McClarren Financial Advisors Inc. now owns 1,061 shares of the cell phone carrier’s stock worth $48,000 after purchasing an additional 938 shares during the last quarter. Institutional investors and hedge funds 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).