Verizon Communications (NYSE:VZ) Shares Up 3.2% Following Better-Than-Expected Earnings

Verizon Communications Inc. (NYSE:VZ)’s stock price rose 3.2% during trading on Tuesday following a stronger than expected earnings report. The stock traded as high as $39.97 and last traded at $39.82. Approximately 8,591,181 shares traded hands during trading, a decline of 57% from the average daily volume of 20,044,602 shares. The stock had previously closed at $38.60.

The cell phone carrier reported $1.15 EPS for the quarter, beating the consensus estimate of $1.12 by $0.03. The firm had revenue of $33 billion for the quarter, compared to analyst estimates of $33.23 billion. Verizon Communications had a return on equity of 20.71% and a net margin of 8.67%. Verizon Communications’s revenue for the quarter was up .3% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.20 earnings per share.

Verizon Communications Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, May 1st. Stockholders of record on Wednesday, April 10th will be paid a dividend of $0.665 per share. The ex-dividend date is Tuesday, April 9th. This represents a $2.66 dividend on an annualized basis and a dividend yield of 6.66%. Verizon Communications’s dividend payout ratio (DPR) is 96.38%.

Analysts Set New Price Targets

Several research analysts have commented on VZ shares. Daiwa Capital Markets raised Verizon Communications from a “neutral” rating to an “outperform” rating and raised their price objective for the company from $36.00 to $47.00 in a research report on Wednesday, January 24th. Citigroup lifted their target price on Verizon Communications from $45.00 to $47.00 and gave the stock a “buy” rating in a report on Tuesday, January 30th. Barclays boosted their target price on Verizon Communications from $42.00 to $44.00 and gave the company an “equal weight” rating in a research note on Friday, January 26th. Redburn Atlantic raised Verizon Communications from a “sell” rating to a “neutral” rating and boosted their price target for the stock from $33.00 to $39.00 in a research report on Friday, March 22nd. Finally, Tigress Financial boosted their price objective on Verizon Communications from $45.00 to $50.00 and gave the stock a “buy” rating in a research report on Thursday, January 25th. Seven investment analysts have rated the stock with a hold rating and eight have assigned a buy rating to the stock. According to MarketBeat.com, Verizon Communications has a consensus rating of “Moderate Buy” and an average price target of $44.50.

Insider Buying and Selling

In related news, CEO Kyle Malady sold 15,000 shares of the business’s stock in a transaction on Thursday, February 15th. The shares were sold at an average price of $40.33, for a total value of $604,950.00. Following the transaction, the chief executive officer now owns 59,201 shares in the company, valued at $2,387,576.33. The transaction was disclosed in a document filed with the SEC, which is available through this link. 0.03% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Verizon Communications

Institutional investors have recently added to or reduced their stakes in the company. Pacifica Partners Inc. grew its stake in Verizon Communications by 4.6% in the 4th quarter. Pacifica Partners Inc. now owns 5,800 shares of the cell phone carrier’s stock valued at $223,000 after buying an additional 255 shares in the last quarter. Private Portfolio Partners LLC increased its position in shares of Verizon Communications by 0.9% in the fourth quarter. Private Portfolio Partners LLC now owns 27,457 shares of the cell phone carrier’s stock valued at $1,035,000 after acquiring an additional 255 shares during the period. Selective Wealth Management Inc. increased its position in shares of Verizon Communications by 2.8% in the fourth quarter. Selective Wealth Management Inc. now owns 9,511 shares of the cell phone carrier’s stock valued at $374,000 after acquiring an additional 257 shares during the period. BKM Wealth Management LLC increased its position in shares of Verizon Communications by 7.4% during the first quarter. BKM Wealth Management LLC now owns 3,715 shares of the cell phone carrier’s stock valued at $156,000 after buying an additional 257 shares during the period. Finally, Horizon Bancorp Inc. IN increased its position in shares of Verizon Communications by 24.9% during the fourth quarter. Horizon Bancorp Inc. IN now owns 1,293 shares of the cell phone carrier’s stock valued at $49,000 after buying an additional 258 shares during the period. 62.06% of the stock is owned by institutional investors.

Verizon Communications Price Performance

The company has a debt-to-equity ratio of 1.47, a current ratio of 0.69 and a quick ratio of 0.65. The firm’s 50 day moving average is $40.53 and its 200 day moving average is $38.38. The firm has a market cap of $167.83 billion, a P/E ratio of 14.43, a price-to-earnings-growth ratio of 3.30 and a beta of 0.41.

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).