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

Verizon Communications Inc. (NYSE:VZ) shares shot up 3.2% during mid-day trading on Tuesday after the company announced better than expected quarterly earnings. The company 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, topping analysts’ consensus estimates of $1.12 by $0.03. Verizon Communications had a net margin of 8.44% and a return on equity of 20.41%. The firm had revenue of $33 billion for the quarter, compared to the consensus estimate of $33.23 billion. During the same period in the prior year, the firm posted $1.20 earnings per share. The company’s revenue for the quarter was up .3% on a year-over-year basis.

Verizon Communications Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, May 1st. Stockholders of record on Wednesday, April 10th will be issued a $0.665 dividend. This represents a $2.66 dividend on an annualized basis and a dividend yield of 6.74%. The ex-dividend date of this dividend is Tuesday, April 9th. Verizon Communications’s payout ratio is 99.25%.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on VZ. Tigress Financial increased their price target on shares of Verizon Communications from $45.00 to $50.00 and gave the stock a “buy” rating in a report on Thursday, January 25th. StockNews.com cut shares of Verizon Communications from a “buy” rating to a “hold” rating in a research report on Wednesday, January 31st. Citigroup upped their price objective on shares of Verizon Communications from $45.00 to $47.00 and gave the stock a “buy” rating in a research report on Tuesday, January 30th. Wolfe Research upgraded shares of Verizon Communications from a “peer perform” rating to an “outperform” rating and set a $46.00 price objective on the stock in a research report on Thursday, January 4th. Finally, Redburn Atlantic upgraded shares of Verizon Communications from a “sell” rating to a “neutral” rating and upped their price objective for the stock from $33.00 to $39.00 in a research report on Friday, March 22nd. Seven analysts have rated the stock with a hold rating and eight have given a buy rating to the company. According to MarketBeat, Verizon Communications currently has a consensus rating of “Moderate Buy” and a consensus target price of $44.21.

Insider Transactions at Verizon Communications

In other news, CEO Kyle Malady sold 15,000 shares of the firm’s stock in a transaction that occurred on Thursday, February 15th. The shares were sold at an average price of $40.33, for a total value of $604,950.00. Following the transaction, the chief executive officer now owns 59,201 shares in the company, valued at $2,387,576.33. The sale 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 Trading of Verizon Communications

A number of institutional investors and hedge funds have recently added to or reduced their stakes in VZ. LFA Lugano Financial Advisors SA increased its holdings in shares of Verizon Communications by 627.8% during the fourth 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 during the fourth quarter valued at $25,000. Vermillion & White Wealth Management Group LLC bought a new position in shares of Verizon Communications during the fourth quarter valued at $29,000. Morton Brown Family Wealth LLC increased its holdings in shares of Verizon Communications by 130.1% during the fourth quarter. Morton Brown Family Wealth LLC now owns 863 shares of the cell phone carrier’s stock valued at $33,000 after acquiring an additional 488 shares in the last quarter. Finally, HBC Financial Services PLLC increased its holdings in shares of Verizon Communications by 320.0% during the third quarter. HBC Financial Services PLLC now owns 1,050 shares of the cell phone carrier’s stock valued at $34,000 after acquiring an additional 800 shares in the last quarter. Hedge funds and other institutional investors own 62.06% of the company’s stock.

Verizon Communications Price Performance

The firm has a fifty day moving average of $40.51 and a 200 day moving average of $38.45. The company has a market capitalization of $166.03 billion, a P/E ratio of 14.74, a P/E/G ratio of 3.14 and a beta of 0.41. The company has a current ratio of 0.71, a quick ratio of 0.65 and a debt-to-equity ratio of 1.42.

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).