Verizon Communications (NYSE:VZ) Trading 3.2% Higher After Strong Earnings

Verizon Communications Inc. (NYSE:VZ) shares traded up 3.2% during trading on Tuesday following a stronger than expected earnings report. 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 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.12 by $0.03. The business had revenue of $33 billion for the quarter, compared to analysts’ expectations of $33.23 billion. Verizon Communications had a return on equity of 20.71% and a net margin of 8.67%. Verizon Communications’s quarterly revenue was up .3% on a year-over-year basis. During the same period in the previous year, the business posted $1.20 earnings per share.

Verizon Communications Announces Dividend

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

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on the company. Barclays boosted their price objective on Verizon Communications from $42.00 to $44.00 and gave the company an “equal weight” rating in a research report on Friday, January 26th. KeyCorp boosted their price target on Verizon Communications from $45.00 to $46.00 and gave the company an “overweight” rating in a research note on Wednesday, January 24th. UBS Group boosted their price target on Verizon Communications from $37.00 to $43.00 and gave the company a “neutral” rating in a research note on Wednesday, January 24th. Tigress Financial boosted their price objective on Verizon Communications from $45.00 to $50.00 and gave the stock a “buy” rating in a research note on Thursday, January 25th. Finally, StockNews.com lowered Verizon Communications from a “buy” rating to a “hold” rating in a research note on Wednesday, January 31st. Seven research analysts have rated the stock with a hold rating and eight have issued a buy rating to the stock. According to MarketBeat, Verizon Communications currently has a consensus rating of “Moderate Buy” and an average target price of $44.21.

Insider Transactions at Verizon Communications

In related 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 sale, the chief executive officer now owns 35,201 shares in the company, valued at $1,436,200.80. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 0.03% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Verizon Communications

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Pacifica Partners Inc. boosted its holdings in shares of Verizon Communications by 4.6% during the fourth quarter. Pacifica Partners Inc. now owns 5,800 shares of the cell phone carrier’s stock worth $223,000 after purchasing an additional 255 shares during the period. Private Portfolio Partners LLC boosted its holdings in shares of Verizon Communications by 0.9% during the fourth quarter. Private Portfolio Partners LLC now owns 27,457 shares of the cell phone carrier’s stock worth $1,035,000 after purchasing an additional 255 shares during the period. Selective Wealth Management Inc. boosted its holdings in shares of Verizon Communications by 2.8% during the fourth quarter. Selective Wealth Management Inc. now owns 9,511 shares of the cell phone carrier’s stock worth $374,000 after purchasing an additional 257 shares during the period. BKM Wealth Management LLC boosted its holdings in shares of Verizon Communications by 7.4% during the first quarter. BKM Wealth Management LLC now owns 3,715 shares of the cell phone carrier’s stock worth $156,000 after purchasing an additional 257 shares during the period. Finally, Horizon Bancorp Inc. IN boosted its holdings in shares of Verizon Communications by 24.9% during the fourth quarter. Horizon Bancorp Inc. IN now owns 1,293 shares of the cell phone carrier’s stock worth $49,000 after purchasing an additional 258 shares during the period. Institutional investors own 62.06% of the company’s stock.

Verizon Communications Trading Up 2.8 %

The company has a quick ratio of 0.65, a current ratio of 0.69 and a debt-to-equity ratio of 1.47. The stock’s fifty day moving average price is $40.52 and its two-hundred day moving average price is $38.44. The company has a market capitalization of $166.85 billion, a PE ratio of 14.38, a price-to-earnings-growth ratio of 3.30 and a beta of 0.41.

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).