Verizon Communications (NYSE:VZ) Trading 3.2% Higher After Strong Earnings

Verizon Communications Inc. (NYSE:VZ)’s stock price rose 3.2% during mid-day trading on Tuesday after the company announced better than expected quarterly earnings. The stock traded as high as $39.97 and last traded at $39.82. Approximately 8,591,181 shares were traded during mid-day 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 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.12 by $0.03. The business had revenue of $33 billion during the quarter, compared to the consensus estimate of $33.23 billion. Verizon Communications had a net margin of 8.67% and a return on equity of 20.71%. The business’s revenue was up .3% compared to the same quarter last year. During the same quarter last year, the firm posted $1.20 EPS.

Verizon Communications Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, May 1st. Stockholders of record on Wednesday, April 10th will be issued a $0.665 dividend. The ex-dividend date is Tuesday, April 9th. This represents a $2.66 dividend on an annualized basis and a dividend yield of 6.70%. Verizon Communications’s dividend payout ratio is presently 96.38%.

Wall Street Analyst Weigh In

VZ has been the subject of a number of research analyst reports. Royal Bank of Canada increased their price target on shares of Verizon Communications from $36.00 to $40.00 and gave the company a “sector perform” rating in a report on Tuesday, April 2nd. Raymond James increased their price objective on shares of Verizon Communications from $42.00 to $46.00 and gave the company an “outperform” rating in a research note on Wednesday, January 24th. Redburn Atlantic raised shares of Verizon Communications from a “sell” rating to a “neutral” rating and increased their price objective for the company from $33.00 to $39.00 in a research note on Friday, March 22nd. UBS Group increased their price objective on shares of Verizon Communications from $37.00 to $43.00 and gave the company a “neutral” rating in a research note on Wednesday, January 24th. Finally, Tigress Financial increased their price objective on shares of Verizon Communications from $45.00 to $50.00 and gave the company a “buy” rating in a research note on Thursday, January 25th. Seven equities research analysts have rated the stock with a hold rating and eight have issued a buy rating to the company’s stock. According to MarketBeat.com, Verizon Communications presently has an average rating of “Moderate Buy” and a consensus target price of $44.21.

Insiders Place Their Bets

In related news, CEO Kyle Malady sold 24,000 shares of the firm’s stock in a transaction that occurred on Thursday, February 22nd. The shares were sold at an average price of $40.80, for a total value of $979,200.00. Following the sale, the chief executive officer now directly owns 35,201 shares of the company’s stock, valued at $1,436,200.80. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.03% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Verizon Communications

Hedge funds have recently modified their holdings of the stock. LFA Lugano Financial Advisors SA raised its holdings in Verizon Communications by 627.8% in the fourth quarter. LFA Lugano Financial Advisors SA now owns 655 shares of the cell phone carrier’s stock valued at $25,000 after buying an additional 565 shares during the period. Criterion Capital Advisors LLC purchased a new position in Verizon Communications in the fourth quarter valued at approximately $25,000. Vermillion & White Wealth Management Group LLC purchased a new position in Verizon Communications in the fourth quarter valued at approximately $29,000. Morton Brown Family Wealth LLC raised its holdings in Verizon Communications by 130.1% in the fourth quarter. Morton Brown Family Wealth LLC now owns 863 shares of the cell phone carrier’s stock valued at $33,000 after buying an additional 488 shares during the period. Finally, HBC Financial Services PLLC raised its holdings in Verizon Communications by 320.0% in the third quarter. HBC Financial Services PLLC now owns 1,050 shares of the cell phone carrier’s stock valued at $34,000 after buying an additional 800 shares during the period. 62.06% of the stock is owned by institutional investors and hedge funds.

Verizon Communications Price Performance

The company’s fifty day moving average is $40.52 and its 200 day moving average is $38.44. The company has a quick ratio of 0.65, a current ratio of 0.69 and a debt-to-equity ratio of 1.47. The stock has a market cap of $166.85 billion, a PE ratio of 14.38, a price-to-earnings-growth ratio of 3.30 and a beta of 0.41.

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).