Verizon Communications (NYSE:VZ) Shares Up 3.1% – Time to Buy?

Verizon Communications Inc. (NYSE:VZ)’s share price shot up 3.1% during mid-day trading on Friday . The company traded as high as $45.92 and last traded at $45.59. 12,525,163 shares traded hands during trading, a decline of 29% from the average session volume of 17,727,100 shares. The stock had previously closed at $44.23.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on VZ. Royal Bank of Canada reduced their price objective on shares of Verizon Communications from $46.00 to $42.00 in a research report on Friday, January 24th. Sanford C. Bernstein initiated coverage on shares of Verizon Communications in a report on Tuesday, December 10th. They set a “market perform” rating and a $48.00 target price on the stock. Deutsche Bank Aktiengesellschaft boosted their target price on shares of Verizon Communications from $40.00 to $42.00 and gave the company a “hold” rating in a report on Friday, January 24th. StockNews.com upgraded shares of Verizon Communications from a “buy” rating to a “strong-buy” rating in a report on Wednesday. Finally, Tigress Financial restated a “buy” rating and set a $55.00 target price on shares of Verizon Communications in a report on Thursday, January 30th. Ten research analysts have rated the stock with a hold rating, seven have issued a buy rating and three have assigned a strong buy rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $46.11.

Verizon Communications Stock Up 4.3 %

The company has a current ratio of 0.63, a quick ratio of 0.59 and a debt-to-equity ratio of 1.21. The firm has a market cap of $194.20 billion, a P/E ratio of 11.14, a PEG ratio of 4.45 and a beta of 0.41. The company’s 50 day simple moving average is $40.61 and its 200-day simple moving average is $41.83.

Verizon Communications (NYSE:VZ) last posted its earnings results on Friday, January 24th. The cell phone carrier reported $1.10 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.11 by ($0.01). Verizon Communications had a net margin of 12.99% and a return on equity of 19.80%. During the same quarter in the prior year, the firm posted $1.08 EPS. Research analysts forecast that Verizon Communications Inc. will post 4.69 earnings per share for the current fiscal year.

Verizon Communications Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, May 1st. Stockholders of record on Thursday, April 10th will be given a dividend of $0.6775 per share. This represents a $2.71 annualized dividend and a dividend yield of 5.87%. The ex-dividend date of this dividend is Thursday, April 10th. Verizon Communications’s payout ratio is currently 65.46%.

Insider Activity

In other news, CEO Kyle Malady sold 20,000 shares of the company’s stock in a transaction dated Monday, January 27th. The shares were sold at an average price of $40.54, for a total transaction of $810,800.00. Following the completion of the sale, the chief executive officer now owns 45,675 shares of the company’s stock, valued at $1,851,664.50. This represents a 30.45 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Vandana Venkatesh sold 10,000 shares of the company’s stock in a transaction dated Tuesday, February 25th. The shares were sold at an average price of $43.79, for a total transaction of $437,900.00. Following the sale, the executive vice president now directly owns 14,459 shares of the company’s stock, valued at $633,159.61. The trade was a 40.88 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 49,085 shares of company stock valued at $2,020,895 in the last quarter. 0.02% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Verizon Communications

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Mainstream Capital Management LLC purchased a new stake in Verizon Communications in the 4th quarter worth approximately $28,000. Capital Performance Advisors LLP purchased a new stake in Verizon Communications in the 3rd quarter worth approximately $31,000. Legend Financial Advisors Inc. increased its holdings in Verizon Communications by 69.6% in the 4th quarter. Legend Financial Advisors Inc. now owns 780 shares of the cell phone carrier’s stock worth $31,000 after acquiring an additional 320 shares in the last quarter. Graney & King LLC purchased a new stake in Verizon Communications in the 4th quarter worth approximately $32,000. Finally, Capital A Wealth Management LLC purchased a new stake in Verizon Communications in the 4th quarter worth approximately $32,000. 62.06% of the stock is owned by hedge funds and other institutional investors.

Verizon Communications Company Profile

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).