Verizon Communications (NYSE:VZ) Trading 0.6% Higher – Still a Buy?

Verizon Communications Inc. (NYSE:VZ)’s stock price traded up 0.6% on Tuesday . The company traded as high as $39.92 and last traded at $39.85. 2,564,484 shares changed hands during mid-day trading, a decline of 86% from the average session volume of 18,368,238 shares. The stock had previously closed at $39.60.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on the company. Royal Bank of Canada lifted their target price on Verizon Communications from $42.00 to $46.00 and gave the stock a “sector perform” rating in a research report on Monday, September 23rd. Bank of America increased their target price on Verizon Communications from $41.00 to $45.00 and gave the company a “neutral” rating in a research note on Thursday, September 26th. Scotiabank lifted their price target on shares of Verizon Communications from $46.50 to $47.25 and gave the stock a “sector perform” rating in a research note on Friday, October 18th. Citigroup increased their price objective on shares of Verizon Communications from $47.00 to $49.00 and gave the company a “buy” rating in a research note on Wednesday, September 25th. Finally, Raymond James boosted their target price on shares of Verizon Communications from $44.00 to $48.00 and gave the stock an “outperform” rating in a research report on Tuesday, September 24th. Ten research analysts have rated the stock with a hold rating and nine have given a buy rating to the company. According to data from MarketBeat.com, Verizon Communications has an average rating of “Hold” and an average price target of $46.51.

Verizon Communications Price Performance

The stock has a market capitalization of $168.34 billion, a price-to-earnings ratio of 17.24, a price-to-earnings-growth ratio of 3.05 and a beta of 0.44. The company has a debt-to-equity ratio of 1.32, a current ratio of 0.66 and a quick ratio of 0.62. The company has a 50-day simple moving average of $41.61 and a two-hundred day simple moving average of $41.84.

Verizon Communications (NYSE:VZ) last announced its quarterly earnings results on Tuesday, October 22nd. The cell phone carrier reported $1.19 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.18 by $0.01. The company had revenue of $33.30 billion during the quarter, compared to analyst estimates of $33.42 billion. Verizon Communications had a return on equity of 20.05% and a net margin of 7.30%. The firm’s quarterly revenue was up .9% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.22 EPS. On average, equities research analysts predict that Verizon Communications Inc. will post 4.61 earnings per share for the current year.

Verizon Communications Cuts Dividend

The company 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 annualized dividend and a dividend yield of 6.78%. The ex-dividend date is Friday, January 10th. Verizon Communications’s dividend payout ratio (DPR) is presently 116.81%.

Institutional Investors Weigh In On Verizon Communications

Large investors have recently modified their holdings of the stock. Oregon Public Employees Retirement Fund grew its stake in Verizon Communications by 0.6% in the second quarter. Oregon Public Employees Retirement Fund now owns 361,612 shares of the cell phone carrier’s stock valued at $14,913,000 after purchasing an additional 2,182 shares in the last quarter. Founders Financial Securities LLC increased its position in Verizon Communications by 45.9% during the second quarter. Founders Financial Securities LLC now owns 25,955 shares of the cell phone carrier’s stock worth $1,070,000 after buying an additional 8,163 shares during the last quarter. Archer Investment Corp raised its holdings in Verizon Communications by 4.2% during the second quarter. Archer Investment Corp now owns 22,244 shares of the cell phone carrier’s stock valued at $917,000 after buying an additional 887 shares in the last quarter. Cozad Asset Management Inc. increased its holdings in shares of Verizon Communications by 4.4% during the 2nd quarter. Cozad Asset Management Inc. now owns 10,136 shares of the cell phone carrier’s stock valued at $418,000 after acquiring an additional 429 shares during the last quarter. Finally, Weaver Capital Management LLC bought a new stake in Verizon Communications during the second quarter worth approximately $555,000. 62.06% of the stock is owned by 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).