Verizon Communications (NYSE:VZ) Shares Gap Down – Time to Sell?

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 traded.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the company. Royal Bank of Canada raised their price objective on Verizon Communications from $42.00 to $46.00 and gave the company a “sector perform” rating in a research report on Monday, September 23rd. 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 report on Wednesday, September 25th. JPMorgan Chase & Co. decreased their price target on shares of Verizon Communications from $46.00 to $45.00 and set a “neutral” rating on the stock in a research note on Tuesday, July 23rd. TD Cowen raised their price objective on shares of Verizon Communications from $48.00 to $51.00 and gave the stock a “buy” rating in a research report on Tuesday, July 23rd. Finally, Tigress Financial upped their target price on Verizon Communications from $52.00 to $55.00 and gave the company a “buy” rating in a research report on Tuesday, October 1st. Eight research analysts have rated the stock with a hold rating and ten have issued a buy rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $46.31.

Verizon Communications Stock Performance

The company has a debt-to-equity ratio of 1.29, a quick ratio of 0.60 and a current ratio of 0.63. The company has a market cap of $175.86 billion, a P/E ratio of 15.63, a P/E/G ratio of 4.02 and a beta of 0.42. The stock’s fifty day moving average price is $43.00 and its two-hundred day moving average price is $41.28.

Verizon Communications (NYSE:VZ) last released its earnings results on Monday, July 22nd. The cell phone carrier reported $1.15 earnings per share for the quarter, hitting the consensus estimate of $1.15. Verizon Communications had a return on equity of 20.10% and a net margin of 8.38%. The firm had revenue of $32.80 billion during the quarter, compared to analysts’ expectations of $33.05 billion. During the same period in the prior year, the company earned $1.21 earnings per share. The company’s quarterly revenue was up .6% on a year-over-year basis. As a group, equities analysts predict that Verizon Communications Inc. will post 4.58 earnings per share for the current year.

Verizon Communications Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, November 1st. Stockholders of record on Thursday, October 10th will be paid a $0.678 dividend. This is an increase from Verizon Communications’s previous quarterly dividend of $0.67. This represents a $2.71 dividend on an annualized basis and a dividend yield of 6.49%. The ex-dividend date is Thursday, October 10th. Verizon Communications’s dividend payout ratio (DPR) is presently 101.12%.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of VZ. Vanguard Group Inc. raised its position in Verizon Communications by 0.3% during the 1st quarter. Vanguard Group Inc. now owns 351,267,175 shares of the cell phone carrier’s stock worth $14,739,171,000 after purchasing an additional 1,216,963 shares during the last quarter. Legal & General Group Plc lifted its stake in shares of Verizon Communications by 3.0% in the second quarter. Legal & General Group Plc now owns 38,357,031 shares of the cell phone carrier’s stock worth $1,581,848,000 after acquiring an additional 1,106,887 shares during the period. Dimensional Fund Advisors LP lifted its stake in shares of Verizon Communications by 1.5% in the second quarter. Dimensional Fund Advisors LP now owns 35,561,841 shares of the cell phone carrier’s stock worth $1,466,446,000 after acquiring an additional 535,322 shares during the period. Raymond James & Associates increased its position in Verizon Communications by 0.6% during the 2nd 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 during the period. Finally, American Century Companies Inc. raised its holdings in Verizon Communications by 7.7% during the 2nd 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 currently owned by institutional investors and hedge funds.

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).