Verizon Communications (NYSE:VZ) Sees Strong Trading Volume Following Earnings Beat

Verizon Communications Inc. (NYSE:VZ) saw unusually-high trading volume on Monday following a stronger than expected earnings report. Approximately 17,871,826 shares traded hands during trading, a decline of 10% from the previous session’s volume of 19,754,693 shares.The stock last traded at $39.00 and had previously closed at $40.49.

The cell phone carrier reported $1.15 earnings per share for the quarter, topping the consensus estimate of $1.12 by $0.03. Verizon Communications had a return on equity of 20.71% and a net margin of 8.67%. The business had revenue of $33 billion for the quarter, compared to analysts’ expectations of $33.23 billion. During the same quarter in the previous year, the firm earned $1.20 earnings per share. The business’s revenue was up .3% on a year-over-year basis.

Verizon Communications Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, May 1st. Shareholders of record on Wednesday, April 10th will be given a $0.665 dividend. The ex-dividend date is Tuesday, April 9th. This represents a $2.66 annualized dividend and a yield of 6.70%. Verizon Communications’s dividend payout ratio is currently 96.38%.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on VZ. StockNews.com lowered Verizon Communications from a “buy” rating to a “hold” rating in a research note on Wednesday, January 31st. Citigroup boosted their target price on Verizon Communications from $45.00 to $47.00 and gave the company a “buy” rating in a research note on Tuesday, January 30th. Wolfe Research upgraded Verizon Communications from a “peer perform” rating to an “outperform” rating and set a $46.00 target price on the stock in a research note on Thursday, January 4th. Barclays boosted their target price on Verizon Communications from $42.00 to $44.00 and gave the company an “equal weight” rating in a research note on Friday, January 26th. Finally, UBS Group boosted their price objective on Verizon Communications from $37.00 to $43.00 and gave the company a “neutral” rating in a research note on Wednesday, January 24th. Seven analysts have rated the stock with a hold rating and eight have given a buy rating to the company. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $44.21.

Insider Transactions at Verizon Communications

In other news, CEO Kyle Malady sold 24,000 shares of the company’s stock in a transaction dated Thursday, February 22nd. The stock was sold at an average price of $40.80, for a total value of $979,200.00. Following the completion of the transaction, the chief executive officer now directly owns 35,201 shares in the company, valued at approximately $1,436,200.80. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 0.03% of the company’s stock.

Institutional Investors Weigh In On Verizon Communications

Several institutional investors have recently bought and sold shares of VZ. Norges Bank bought a new position in Verizon Communications during the 4th quarter valued at approximately $1,882,164,000. Capital World Investors raised its position in shares of Verizon Communications by 127.6% in the 4th quarter. Capital World Investors now owns 21,801,067 shares of the cell phone carrier’s stock worth $821,900,000 after acquiring an additional 12,220,777 shares in the last quarter. Capital Research Global Investors raised its position in shares of Verizon Communications by 92.9% in the 4th quarter. Capital Research Global Investors now owns 22,599,173 shares of the cell phone carrier’s stock worth $851,989,000 after acquiring an additional 10,882,873 shares in the last quarter. Third Point LLC bought a new position in shares of Verizon Communications in the 4th quarter worth approximately $173,325,000. Finally, Charles Schwab Investment Management Inc. raised its position in shares of Verizon Communications by 4.8% in the 3rd quarter. Charles Schwab Investment Management Inc. now owns 98,027,542 shares of the cell phone carrier’s stock worth $3,151,714,000 after acquiring an additional 4,527,387 shares in the last quarter. 62.06% of the stock is currently owned by hedge funds and other institutional investors.

Verizon Communications Price Performance

The stock has a market cap of $166.85 billion, a P/E ratio of 14.38, a price-to-earnings-growth ratio of 3.30 and a beta of 0.41. The firm has a 50-day moving average price of $40.52 and a 200-day moving average price of $38.44. The company has a debt-to-equity ratio of 1.47, a quick ratio of 0.65 and a current ratio of 0.69.

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).