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

Verizon Communications Inc. (NYSE:VZ)’s share price gapped down before the market opened on Tuesday . The stock had previously closed at $43.70, but opened at $41.90. Verizon Communications shares last traded at $41.32, with a volume of 9,829,452 shares changing hands.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on VZ. TD Cowen boosted their target price on Verizon Communications from $48.00 to $51.00 and gave the stock a “buy” rating in a research report on Tuesday, July 23rd. Scotiabank boosted their price objective on shares of Verizon Communications from $46.50 to $47.25 and gave the company a “sector perform” rating in a report on Friday, October 18th. The Goldman Sachs Group assumed coverage on shares of Verizon Communications in a report on Monday, July 1st. They issued a “buy” rating and a $50.00 target price on the stock. Royal Bank of Canada boosted their target price on shares of Verizon Communications from $42.00 to $46.00 and gave the company a “sector perform” rating in a research note on Monday, September 23rd. Finally, Bank of America raised their price target on Verizon Communications from $41.00 to $45.00 and gave the stock a “neutral” rating in a research note on Thursday, September 26th. Eight equities research analysts have rated the stock with a hold rating and ten have given a buy rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $46.37.

Verizon Communications Price Performance

The firm has a market cap of $180.45 billion, a PE ratio of 16.00, a P/E/G ratio of 4.02 and a beta of 0.42. The firm’s fifty day simple moving average is $43.05 and its two-hundred day simple moving average is $41.29. The company has a quick ratio of 0.60, a current ratio of 0.63 and a debt-to-equity ratio of 1.29.

Verizon Communications (NYSE:VZ) last released its earnings results on Tuesday, October 22nd. The cell phone carrier reported $1.19 earnings per share for the quarter, beating analysts’ consensus estimates of $1.18 by $0.01. Verizon Communications had a net margin of 8.38% and a return on equity of 20.10%. The company had revenue of $33.30 billion for the quarter, compared to analysts’ expectations of $33.42 billion. During the same quarter in the previous year, the company earned $1.22 EPS. Verizon Communications’s revenue for the quarter was up .9% on a year-over-year basis. As a group, research analysts expect that Verizon Communications Inc. will post 4.58 EPS for the current year.

Verizon Communications Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, November 1st. Investors of record on Thursday, October 10th will be given a dividend of $0.678 per share. The ex-dividend date is Thursday, October 10th. This represents a $2.71 annualized dividend and a dividend yield of 6.33%. This is a boost from Verizon Communications’s previous quarterly dividend of $0.67. Verizon Communications’s dividend payout ratio (DPR) is currently 101.12%.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. boosted its position in shares of Verizon Communications by 0.3% during the first quarter. Vanguard Group Inc. now owns 351,267,175 shares of the cell phone carrier’s stock worth $14,739,171,000 after acquiring an additional 1,216,963 shares during the last quarter. Legal & General Group Plc lifted its stake in Verizon Communications by 3.0% in the 2nd quarter. Legal & General Group Plc now owns 38,357,031 shares of the cell phone carrier’s stock worth $1,581,848,000 after purchasing an additional 1,106,887 shares in the last quarter. Dimensional Fund Advisors LP boosted its holdings in shares of Verizon Communications by 1.5% during the 2nd quarter. Dimensional Fund Advisors LP now owns 35,561,841 shares of the cell phone carrier’s stock valued at $1,466,446,000 after purchasing an additional 535,322 shares during the last quarter. Raymond James & Associates grew its position in shares of Verizon Communications by 0.6% during the second quarter. Raymond James & Associates now owns 16,458,264 shares of the cell phone carrier’s stock valued at $678,739,000 after purchasing an additional 104,447 shares in the last quarter. Finally, American Century Companies Inc. increased its holdings in shares of Verizon Communications by 7.7% in the second quarter. American Century Companies Inc. now owns 13,127,360 shares of the cell phone carrier’s stock worth $541,372,000 after purchasing an additional 936,823 shares during the last quarter. 62.06% of the stock is owned by hedge funds and other 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).