Verizon Communications (NYSE:VZ) Stock Price Up 3.2% Following Better-Than-Expected Earnings

Verizon Communications Inc. (NYSE:VZ)’s stock price shot up 3.2% on Tuesday after the company announced better than expected quarterly earnings. The stock traded as high as $39.97 and last traded at $39.82. 8,591,181 shares traded hands during trading, a decline of 57% from the average session volume of 20,044,602 shares. The stock had previously closed at $38.60.

The cell phone carrier reported $1.15 EPS for the quarter, beating analysts’ consensus estimates of $1.12 by $0.03. The company had revenue of $33 billion for the quarter, compared to analyst estimates of $33.23 billion. Verizon Communications had a return on equity of 20.71% and a net margin of 8.67%. The company’s quarterly revenue was up .3% compared to the same quarter last year. During the same period last year, the company earned $1.20 earnings per share.

Verizon Communications Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, May 1st. Investors of record on Wednesday, April 10th will be paid a dividend of $0.665 per share. The ex-dividend date of this dividend is Tuesday, April 9th. This represents a $2.66 annualized dividend and a yield of 6.66%. Verizon Communications’s dividend payout ratio is currently 96.38%.

Analyst Ratings Changes

Several brokerages recently weighed in on VZ. Redburn Atlantic raised Verizon Communications from a “sell” rating to a “neutral” rating and raised their target price for the company from $33.00 to $39.00 in a research note on Friday, March 22nd. Tigress Financial increased their price target on Verizon Communications from $45.00 to $50.00 and gave the company a “buy” rating in a research report on Thursday, January 25th. Wells Fargo & Company increased their price target on Verizon Communications from $40.00 to $44.00 and gave the company an “equal weight” rating in a research report on Wednesday, January 24th. Citigroup increased their price target on Verizon Communications from $45.00 to $47.00 and gave the company a “buy” rating in a research report on Tuesday, January 30th. Finally, UBS Group increased their price target on Verizon Communications from $37.00 to $43.00 and gave the company a “neutral” rating in a research report on Wednesday, January 24th. Seven analysts have rated the stock with a hold rating and eight have issued a buy rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $44.50.

Insider Transactions at Verizon Communications

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

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in VZ. LFA Lugano Financial Advisors SA raised its stake in shares of Verizon Communications by 627.8% in the 4th quarter. LFA Lugano Financial Advisors SA now owns 655 shares of the cell phone carrier’s stock valued at $25,000 after acquiring an additional 565 shares in the last quarter. Criterion Capital Advisors LLC bought a new position in shares of Verizon Communications in the 4th quarter valued at approximately $25,000. Vermillion & White Wealth Management Group LLC acquired a new stake in Verizon Communications in the 4th quarter valued at approximately $29,000. Morton Brown Family Wealth LLC grew its holdings in Verizon Communications by 130.1% in the 4th quarter. Morton Brown Family Wealth LLC now owns 863 shares of the cell phone carrier’s stock valued at $33,000 after buying an additional 488 shares during the last quarter. Finally, HBC Financial Services PLLC grew its holdings in Verizon Communications by 320.0% in the 3rd quarter. HBC Financial Services PLLC now owns 1,050 shares of the cell phone carrier’s stock valued at $34,000 after buying an additional 800 shares during the last quarter. 62.06% of the stock is owned by institutional investors.

Verizon Communications Price Performance

The stock has a market cap of $167.83 billion, a price-to-earnings ratio of 14.43, a price-to-earnings-growth ratio of 3.30 and a beta of 0.41. The stock has a fifty day simple moving average of $40.53 and a 200-day simple moving average of $38.38. The company has a current ratio of 0.69, a quick ratio of 0.65 and a debt-to-equity ratio of 1.47.

About Verizon Communications

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).