Verizon Communications (NYSE:VZ) Stock Jumps 1.1% – What’s Next?

Verizon Communications Inc. (NYSE:VZ)’s share price rose 1.1% on Monday. The company traded as high as $45.32 and last traded at $45.21. 28,608,205 shares were traded during mid-day trading, an increase of 4% from the average daily volume of 27,430,637 shares. The stock had previously closed at $44.73.

Trending Headlines about Verizon Communications

Here are the key news stories impacting Verizon Communications this week:

• Positive Sentiment: Verizon and Ericsson are moving toward a nationwide rollout of AI-enabled network automation. Field tests reportedly improved certain downlink and uplink performance measures, offering potential efficiency and service-quality benefits. Verizon and Ericsson partner to transform AI-native Autonomous Networks
• Neutral Sentiment: Verizon announced pricing for offers to purchase up to $500 million of five series of notes. The debt-management move may help reshape its liabilities, but the announcement alone does not establish a material change to its financial outlook. Verizon announces pricing terms of its tender offers for five series of notes
• Neutral Sentiment: Recent Q3 commentary noted that smartphone net additions were much higher than a year earlier, but revenue per account fell 1.9%, pointing to a mixed growth picture. Verizon latest earnings commentary
• Neutral Sentiment: Verizon is expanding its private wireless support for NFL games, including connected officiating and deployments at overseas venues. The initiative showcases its network capabilities, though the article does not quantify its financial impact. Powering the Play: Verizon Elevates the NFL Gameday Experience Worldwide
• Negative Sentiment: SpaceX is pursuing wireless-network plans with Qualcomm and reportedly exploring a Boost Mobile deal. A new entrant could intensify competition for Verizon, although the plans remain developing and no Boost deal has been finalized. SpaceX strikes major Qualcomm deal to take on Verizon and AT&T

Wall Street Analyst Weigh In

Several research firms have recently commented on VZ. TD Cowen decreased their target price on shares of Verizon Communications from $56.00 to $55.00 and set a “buy” rating for the company in a research report on Tuesday, October 27th. Morgan Stanley cut their price objective on shares of Verizon Communications from $52.00 to $50.00 and set an “equal weight” rating on the stock in a report on Tuesday, October 27th. Moffett Nathanson upped their target price on Verizon Communications from $49.00 to $50.00 and gave the company a “neutral” rating in a report on Tuesday, September 22nd. The Goldman Sachs Group decreased their price objective on shares of Verizon Communications from $51.00 to $47.00 in a report on Tuesday, October 27th. Finally, Arete Research decreased their target price on Verizon Communications from $71.00 to $62.00 and set a “buy” rating for the company in a research report on Thursday, October 1st. Thirteen research analysts have rated the stock with a Buy rating and sixteen have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $51.05.

Verizon Communications Stock Up 2.1%

The company has a debt-to-equity ratio of 1.33, a current ratio of 0.63 and a quick ratio of 0.58. The company has a market cap of $191.50 billion, a PE ratio of 9.08, a price-to-earnings-growth ratio of 1.83 and a beta of 0.28. The company has a fifty day moving average price of $46.78 and a 200 day moving average price of $46.83.

Verizon Communications (NYSE:VZ) last announced its earnings results on Monday, October 26th. The cell phone carrier reported $1.31 earnings per share for the quarter, beating analysts’ consensus estimates of $1.27 by $0.04. Verizon Communications had a net margin of 11.78% and a return on equity of 19.75%. The business had revenue of $34.31 billion for the quarter, compared to the consensus estimate of $34.77 billion. During the same period last year, the firm posted $1.21 earnings per share. Verizon Communications’s quarterly revenue was up 1.5% on a year-over-year basis. As a group, analysts anticipate that Verizon Communications Inc. will post 5.08 EPS for the current year.

Verizon Communications Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, November 2nd. Stockholders of record on Friday, October 9th were given a dividend of $0.7075 per share. The ex-dividend date was Friday, October 9th. This represents a $2.83 annualized dividend and a dividend yield of 6.1%. Verizon Communications’s dividend payout ratio (DPR) is 72.19%.

Insider Activity

In related news, CEO Kyle Malady sold 1,100 shares of the company’s stock in a transaction on Tuesday, October 27th. The shares were sold at an average price of $43.00, for a total value of $47,300.00. Following the completion of the transaction, the chief executive officer directly owned 98,866 shares in the company, valued at approximately $4,251,238. The trade was a 1.10% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 11,000 shares of company stock worth $516,373. Insiders own 0.03% of the company’s stock.

Hedge Funds Weigh In On Verizon Communications

A number of large investors have recently modified their holdings of VZ. Bank of America Corp DE boosted its holdings in Verizon Communications by 15.4% during the 1st quarter. Bank of America Corp DE now owns 62,101,021 shares of the cell phone carrier’s stock valued at $3,117,471,000 after acquiring an additional 8,289,877 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in Verizon Communications by 14.1% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 41,173,226 shares of the cell phone carrier’s stock worth $1,743,274,000 after purchasing an additional 5,075,794 shares during the period. Bank of New York Mellon Corp increased its stake in Verizon Communications by 20.8% in the 1st quarter. Bank of New York Mellon Corp now owns 38,164,982 shares of the cell phone carrier’s stock worth $1,915,882,000 after purchasing an additional 6,580,820 shares during the period. Dimensional Fund Advisors LP increased its stake in Verizon Communications by 6.4% in the 1st quarter. Dimensional Fund Advisors LP now owns 32,734,998 shares of the cell phone carrier’s stock worth $1,643,339,000 after purchasing an additional 1,972,634 shares during the period. Finally, Deutsche Bank AG lifted its position in Verizon Communications by 6.7% in the second quarter. Deutsche Bank AG now owns 20,882,074 shares of the cell phone carrier’s stock valued at $884,147,000 after purchasing an additional 1,305,471 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 is a telecommunications company that provides wireless communications, broadband, and digital connectivity services. Through its consumer business, Verizon offers mobile voice and data plans, smartphones and other connected devices, home internet, fixed wireless access, and fiber-optic broadband services under the Fios brand.

Verizon also serves businesses, government agencies, and other organizations with wireless connectivity, private networks, internet and data services, managed communications, cloud and security solutions, and Internet of Things services.