Verizon Communications (NYSE:VZ) Trading 0.7% Higher – Should You Buy?

Verizon Communications Inc. (NYSE:VZ)’s stock price traded up 0.7% during trading on Thursday . The company traded as high as $39.40 and last traded at $39.23. 6,844,242 shares changed hands during mid-day trading, a decline of 70% from the average session volume of 22,979,980 shares. The stock had previously closed at $38.95.

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on the company. Royal Bank of Canada cut their price target on Verizon Communications from $46.00 to $42.00 in a report on Friday. KeyCorp downgraded shares of Verizon Communications from an “overweight” rating to a “sector weight” rating in a research note on Thursday, October 24th. Scotiabank boosted their target price on shares of Verizon Communications from $46.50 to $47.25 and gave the stock a “sector perform” rating in a report on Friday, October 18th. Tigress Financial increased their price target on shares of Verizon Communications from $52.00 to $55.00 and gave the company a “buy” rating in a report on Tuesday, October 1st. Finally, StockNews.com downgraded Verizon Communications from a “strong-buy” rating to a “buy” rating in a research report on Monday, December 16th. Eleven equities research analysts have rated the stock with a hold rating, seven have issued a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and an average price target of $46.29.

Verizon Communications Price Performance

The company has a market capitalization of $166.43 billion, a PE ratio of 17.04, a P/E/G ratio of 3.27 and a beta of 0.46. The firm has a fifty day simple moving average of $40.85 and a 200 day simple moving average of $41.61. The company has a debt-to-equity ratio of 1.32, a quick ratio of 0.62 and a current ratio of 0.66.

Verizon Communications (NYSE:VZ) last released its quarterly earnings data on Friday, January 24th. The cell phone carrier reported $1.10 earnings per share for the quarter, missing analysts’ consensus estimates of $1.11 by ($0.01). Verizon Communications had a return on equity of 20.05% and a net margin of 7.30%. During the same quarter in the previous year, the business earned $1.08 earnings per share. Equities analysts anticipate that Verizon Communications Inc. will post 4.59 EPS for the current year.

Verizon Communications Cuts Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, February 3rd. Stockholders of record on Friday, January 10th will be given a dividend of $0.6775 per share. This represents a $2.71 dividend on an annualized basis and a dividend yield of 6.85%. The ex-dividend date is Friday, January 10th. Verizon Communications’s payout ratio is presently 116.81%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Capital Performance Advisors LLP acquired a new stake in shares of Verizon Communications during the third quarter worth $31,000. Accordant Advisory Group Inc lifted its position in Verizon Communications by 137.6% during the 3rd 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 period. Legend Financial Advisors Inc. grew its stake 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 valued at $31,000 after purchasing an additional 320 shares during the last quarter. Cedar Mountain Advisors LLC increased its holdings in shares of Verizon Communications by 655.5% in the fourth quarter. Cedar Mountain Advisors LLC now owns 967 shares of the cell phone carrier’s stock valued at $39,000 after purchasing an additional 839 shares during the period. Finally, MidAtlantic Capital Management Inc. purchased a new position in shares of Verizon Communications in the third quarter worth about $44,000. 62.06% of the stock is currently owned by hedge funds and other institutional investors.

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).