Verizon Communications (NYSE:VZ) Shares Decline 0.3% - Assessing the Situation

In a recent trading session, the stock price of Verizon Communications Inc. (NYSE:VZ) fell by 0.3%. During midday trading on Wednesday, shares dropped to as low as $38.13 before finally settling at $38.16. Trading volume was recorded at 6,701,411 shares, marking a significant decrease of 68% compared to the average session volume of 20,872,266 shares. Previously, the stock had closed at $38.28.

Changes in Analyst Ratings

Verizon has recently been the focus of various analysts and their assessments. For instance, on September 26th, Bank of America raised its price target for Verizon from $41.00 to $45.00, maintaining a "neutral" rating. On December 16th, StockNews.com revised its stance from a "strong-buy" to a "buy" rating. Meanwhile, Tigress Financial boosted its price target from $52.00 to $55.00, retaining a "buy" rating as of October 1st. Scotiabank also adjusted its price objective from $46.50 to $47.25, labeling the company as a "sector perform" on October 18th. Additionally, KeyCorp decreased its rating from "overweight" to "sector weight" on October 24th. Altogether, ten analysts recommend holding the stock, while seven suggest buying, and one has a strong buy rating. The current consensus has a rating of "Moderate Buy" with an average target price of $46.54, based on data sourced from MarketBeat.

Verizon's Stock Performance Insights

Verizon has a market capitalization of $163.58 billion. Its price-to-earnings (PE) ratio stands at 16.75, complemented by a price-to-earnings-growth (PEG) ratio of 3.17. The company holds a beta of 0.46, indicating lower volatility compared to the market. The 50-day and 200-day simple moving averages are currently at $41.06 and $41.71, respectively. Financial metrics reveal a debt-to-equity ratio of 1.32, along with a current ratio of 0.66, and a quick ratio of 0.62.

Latest Earnings Report

On October 22nd, Verizon announced its quarterly earnings. For the quarter, the company reported earnings per share (EPS) of $1.19, exceeding the analysts' consensus estimate of $1.18 by a margin of $0.01. Verizon's net margin was noted at 7.30%, with a return on equity of 20.05%. The company reported revenue of $33.30 billion, which was slightly below the anticipated $33.42 billion. Furthermore, revenue increased by 0.9% year-over-year. Analysts estimate a total EPS of 4.6 for the current fiscal year.

Dividend Announcement

In recent news, Verizon declared a quarterly dividend of $0.6775 per share, set to be paid on February 3rd to those on record by January 10th. This annualizes to $2.71, yielding 6.97%. The ex-dividend date is also January 10th. Notably, the company’s current dividend payout ratio stands at 116.81%, indicating that it pays out more than its earnings.

Institutional Investor Activity

Large institutional investors have been active in trading Verizon shares. Charles Schwab Investment Management increased its position by 6.2% during the third quarter, now owning 101,273,082 shares valued at approximately $4.55 billion after acquiring an additional 5,936,009 shares. Geode Capital Management also upped its holdings by 2.2%, owning 95,824,245 shares worth about $4.29 billion. Other notable increases include Legal & General Group, FMR LLC, and Parnassus Investments, demonstrating robust institutional interest in the stock. Hedge funds and institutional investors collectively hold approximately 62.06% of Verizon shares.

About Verizon Communications

Verizon Communications Inc. operates globally through its subsidiaries, providing a broad range of communication, technology, information, and entertainment services to consumers, businesses, and government entities. The company is divided into two principal segments: the Verizon Consumer Group and the Verizon Business Group.

Conclusion

Considering the current situation, investors may ponder whether it’s the right time to hold or sell their shares in Verizon Communications.

Verizon, Stock, Investment