Traders Buy Verizon Communications Inc. (VZ) on Weakness After Earnings Miss
Traders purchased shares of Verizon Communications Inc. (NYSE:VZ) on weakness during trading on Thursday following a dissappointing earnings announcement. $346.66 million flowed into the stock on the tick-up and $269.09 million flowed out of the stock on the tick-down, for a money net flow of $77.57 million into the stock. Of all companies tracked, Verizon Communications had the 2nd highest net in-flow for the day. Verizon Communications traded down ($0.53) for the day and closed at $48.41The cell phone carrier reported $0.95 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.98 by $0.03. Verizon Communications had a net margin of 10.42% and a return on equity of 72.75%. The firm had revenue of $29.81 billion for the quarter, compared to analysts’ expectations of $30.41 billion. During the same period last year, the company posted $1.06 earnings per share. The business’s revenue for the quarter was down 7.3% compared to the same quarter last year.
The company also recently disclosed a quarterly dividend, which will be paid on Monday, May 1st. Investors of record on Monday, April 10th will be given a dividend of $0.5775 per share. This represents a $2.31 annualized dividend and a yield of 4.77%. The ex-dividend date is Thursday, April 6th. Verizon Communications’s dividend payout ratio (DPR) is 71.74%.
Several analysts recently commented on VZ shares. Vetr downgraded shares of Verizon Communications from a “buy” rating to a “hold” rating and set a $52.38 price objective on the stock. in a research report on Monday, January 2nd. Citigroup Inc raised shares of Verizon Communications from a “neutral” rating to a “buy” rating and increased their price objective for the company from $52.25 to $53.38 in a research report on Tuesday, January 3rd. Drexel Hamilton downgraded shares of Verizon Communications from a “buy” rating to a “hold” rating in a research report on Friday, January 6th. BTIG Research reissued a “neutral” rating on shares of Verizon Communications in a research report on Thursday, January 12th. Finally, Jefferies Group LLC reissued a “hold” rating and set a $53.00 price objective on shares of Verizon Communications in a research report on Monday, January 16th. One investment analyst has rated the stock with a sell rating, twenty-two have assigned a hold rating and eight have given a buy rating to the company’s stock. The stock presently has a consensus rating of “Hold” and a consensus price target of $54.23.
In other Verizon Communications news, EVP Roger Gurnani sold 10,804 shares of the firm’s stock in a transaction that occurred on Thursday, February 23rd. The shares were sold at an average price of $50.29, for a total transaction of $543,333.16. Following the sale, the executive vice president now owns 63,734 shares in the company, valued at approximately $3,205,182.86. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Craig L. Silliman sold 610 shares of the firm’s stock in a transaction that occurred on Monday, March 27th. The stock was sold at an average price of $49.66, for a total transaction of $30,292.60. Following the sale, the executive vice president now owns 10,259 shares in the company, valued at approximately $509,461.94. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 56,163 shares of company stock worth $2,786,879. 0.10% of the stock is owned by company insiders.
Large investors have recently added to or reduced their stakes in the company. Advisor Consultant Network Inc. purchased a new stake in Verizon Communications during the third quarter worth approximately $1,260,000. Webster Bank N. A. boosted its stake in Verizon Communications by 1.2% in the third quarter. Webster Bank N. A. now owns 89,362 shares of the cell phone carrier’s stock worth $4,645,000 after buying an additional 1,066 shares during the last quarter. Charter Trust Co. boosted its stake in Verizon Communications by 1.4% in the third quarter. Charter Trust Co. now owns 136,422 shares of the cell phone carrier’s stock worth $7,091,000 after buying an additional 1,821 shares during the last quarter. Peddock Capital Advisors LLC boosted its stake in Verizon Communications by 0.6% in the third quarter. Peddock Capital Advisors LLC now owns 24,910 shares of the cell phone carrier’s stock worth $1,295,000 after buying an additional 144 shares during the last quarter. Finally, BTR Capital Management Inc. boosted its stake in Verizon Communications by 6.9% in the third quarter. BTR Capital Management Inc. now owns 46,463 shares of the cell phone carrier’s stock worth $2,415,000 after buying an additional 2,991 shares during the last quarter. Institutional investors own 63.38% of the company’s stock.
The stock has a market cap of $197.35 billion, a P/E ratio of 15.08 and a beta of 0.43. The company has a 50 day moving average price of $49.36 and a 200-day moving average price of $49.97. Verizon Communications also was the recipient of some unusual options trading on Tuesday. Traders bought 42,074 call options on the stock. This is an increase of 391% compared to the typical volume of 8,574 call options.
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Verizon Communications Company Profile
Verizon Communications Inc is a holding company. The Company, through its subsidiaries, provides communications, information and entertainment products and services to consumers, businesses and governmental agencies. Its segments include Wireless and Wireline. The Wireless segment offers communications products and services, including wireless voice and data services and equipment sales, to consumer, business and government customers across the United States.
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