Verizon Communications (NYSE:VZ) Shares Down 1.6% – Here’s Why

Verizon Communications Inc. (NYSE:VZ)’s stock price was down 1.6% during trading on Wednesday . The stock traded as low as $49.17 and last traded at $49.3920. Approximately 28,017,339 shares were traded during trading, a decline of 13% from the average daily volume of 32,194,717 shares. The stock had previously closed at $50.20.

Analysts Set New Price Targets

VZ has been the topic of several recent analyst reports. Scotiabank upgraded shares of Verizon Communications from a “sector perform” rating to a “sector outperform” rating and increased their target price for the stock from $50.25 to $54.50 in a research note on Monday, March 9th. Barclays boosted their price target on shares of Verizon Communications from $43.00 to $47.00 and gave the company an “equal weight” rating in a research report on Tuesday. Morgan Stanley increased their price objective on Verizon Communications from $47.00 to $49.00 and gave the stock an “equal weight” rating in a research report on Monday, February 2nd. Erste Group Bank raised Verizon Communications from a “hold” rating to a “strong-buy” rating in a research note on Thursday. Finally, Citigroup upped their target price on Verizon Communications from $50.00 to $55.00 and gave the stock a “buy” rating in a research note on Friday, March 20th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and nine have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $50.56.

Verizon Communications Trading Up 0.1%

The company has a debt-to-equity ratio of 1.32, a quick ratio of 0.87 and a current ratio of 0.91. The firm has a market cap of $208.59 billion, a PE ratio of 12.21, a PEG ratio of 2.07 and a beta of 0.29. The stock’s 50 day simple moving average is $48.36 and its 200 day simple moving average is $43.44.

Verizon Communications (NYSE:VZ) last posted its quarterly earnings data on Friday, January 30th. The cell phone carrier reported $1.09 earnings per share for the quarter, beating the consensus estimate of $1.06 by $0.03. Verizon Communications had a net margin of 12.43% and a return on equity of 19.03%. The firm had revenue of $36.38 billion for the quarter, compared to analysts’ expectations of $36.20 billion. During the same quarter last year, the company posted $1.10 EPS. The business’s quarterly revenue was up 2.0% on a year-over-year basis. Verizon Communications has set its FY 2026 guidance at 4.900-4.950 EPS. On average, sell-side analysts forecast that Verizon Communications Inc. will post 4.69 earnings per share for the current fiscal year.

Verizon Communications Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, May 1st. Shareholders of record on Friday, April 10th will be given a dividend of $0.7075 per share. The ex-dividend date is Friday, April 10th. This is a positive change from Verizon Communications’s previous quarterly dividend of $0.69. This represents a $2.83 dividend on an annualized basis and a yield of 5.7%. Verizon Communications’s dividend payout ratio (DPR) is 68.15%.

Insider Transactions at Verizon Communications

In other news, SVP Mary-Lee Stillwell sold 8,569 shares of the company’s stock in a transaction dated Monday, March 2nd. The stock was sold at an average price of $50.00, for a total value of $428,450.00. Following the completion of the transaction, the senior vice president directly owned 43,782 shares in the company, valued at approximately $2,189,100. This represents a 16.37% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Hans Erik Vestberg sold 200,000 shares of the stock in a transaction dated Tuesday, February 24th. The shares were sold at an average price of $49.61, for a total value of $9,922,000.00. Following the transaction, the director owned 145,069 shares in the company, valued at $7,196,873.09. This trade represents a 57.96% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 218,148 shares of company stock worth $10,780,356. 0.10% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in VZ. Strategic Investment Solutions Inc. IL lifted its stake in Verizon Communications by 8.6% in the fourth quarter. Strategic Investment Solutions Inc. IL now owns 2,765 shares of the cell phone carrier’s stock worth $113,000 after purchasing an additional 219 shares during the last quarter. Sumitomo Life Insurance Co. grew its stake in shares of Verizon Communications by 0.7% during the fourth quarter. Sumitomo Life Insurance Co. now owns 35,023 shares of the cell phone carrier’s stock valued at $1,426,000 after buying an additional 227 shares during the last quarter. Blake Schutter Theil Wealth Advisors LLC increased its holdings in shares of Verizon Communications by 3.8% in the fourth quarter. Blake Schutter Theil Wealth Advisors LLC now owns 6,305 shares of the cell phone carrier’s stock worth $257,000 after buying an additional 233 shares during the period. Triton Wealth Management PLLC increased its holdings in shares of Verizon Communications by 2.6% in the fourth quarter. Triton Wealth Management PLLC now owns 9,257 shares of the cell phone carrier’s stock worth $377,000 after buying an additional 234 shares during the period. Finally, Clearstead Trust LLC lifted its stake in shares of Verizon Communications by 2.5% in the 4th quarter. Clearstead Trust LLC now owns 9,788 shares of the cell phone carrier’s stock valued at $399,000 after acquiring an additional 240 shares during the last quarter. 62.06% of the stock is owned by hedge funds and other institutional investors.

About Verizon Communications

Verizon Communications Inc (NYSE: VZ) is a major U.S.-based telecommunications company that provides a broad range of communications and information services. Its operations span consumer and business markets, with core offerings that include wireless voice and data services, fixed-line broadband and fiber-optic services, and enterprise networking solutions. Verizon is headquartered in New York City and operates a nationwide wireless network that supports consumer subscribers as well as business and government customers.

The company’s consumer products include mobile phone plans, unlimited data services, and Fios, its branded fiber-optic internet, television and voice service for homes and small businesses.