Verizon Communications (NYSE: VZ) received a significant boost from analysts at Arete Research, who upgraded the telecommunications giant to a “strong-buy” rating in a report released on April 22, 2024. This upgrade reflects a broader shift in sentiment among analysts toward Verizon, as several firms have recently reassessed their outlook on the company.
Analyst Ratings and Price Targets
In the wake of Arete Research’s upgrade, other notable analysts have also provided their insights on Verizon’s stock performance. On April 18, Wells Fargo & Company increased their price target for Verizon from $42.00 to $43.00 while maintaining an “equal weight” rating. Conversely, Wolfe Research downgraded Verizon from an “outperform” to a “peer perform” rating on April 17.
Scotiabank also adjusted their price target, lifting it from $48.50 to $49.00, assigning the stock a “sector perform” rating. Meanwhile, Tigress Financial raised their target from $55.00 to $56.00 and maintained a “buy” rating. Oppenheimer echoed this sentiment, increasing their target price from $48.00 to $50.00 and giving Verizon an “outperform” rating.
Currently, eleven analysts have rated Verizon with a hold rating, seven have assigned a buy rating, and three analysts have given it a strong buy rating. According to data from MarketBeat.com, Verizon holds an average rating of “Moderate Buy” with a projected average target price of $47.00.
Financial Performance and Insider Transactions
Verizon’s latest earnings report, released on April 22, showed positive results, with earnings per share (EPS) of $1.19, exceeding analysts’ expectations of $1.15 by $0.04. The company reported revenues of $33.50 billion, surpassing the anticipated $33.31 billion. Verizon also noted a return on equity of 19.66% and a net margin of 13.14%. Analysts project Verizon will achieve $4.69 EPS for the current fiscal year.
In related news, CEO Kyle Malady sold 9,000 shares of Verizon stock on May 7, 2024, at an average price of $44.10, resulting in a total transaction value of $396,900. Following this sale, Malady directly owns 10,008 shares valued at approximately $441,352.80, marking a 47.35% reduction in his holdings. This transaction was disclosed in a legal filing with the Securities & Exchange Commission.
Over the past 90 days, company insiders have sold a total of 21,500 shares, valued at $938,400. Currently, insiders hold 0.10% of Verizon’s stock.
Institutional Investor Activity
Institutional interest in Verizon has also increased, with several hedge funds adjusting their positions. For instance, Bernard Wealth Management Corp. raised its stake in Verizon by 81.0% during the first quarter, now owning 543 shares valued at $25,000 after acquiring an additional 243 shares. Additionally, Bulwark Capital Corp. purchased a new position valued at about $25,000.
Cherry Tree Wealth Management LLC increased its holdings by 71.8%, now owning 584 shares valued at $26,000 after acquiring an additional 244 shares. Garde Capital Inc. and 1 North Wealth Services LLC also made new investments in Verizon, with stakes valued at approximately $26,000 and $29,000, respectively. Institutional investors collectively own 62.06% of Verizon’s shares.
Verizon Communications Inc., through its subsidiaries, provides communications, technology, information, and entertainment products and services worldwide. The company operates in two main segments: Verizon Consumer Group and Verizon Business Group.
As the telecom industry continues to evolve, Verizon’s strategic positioning and market responses remain crucial for investors and analysts alike, with recent analyst upgrades indicating a positive outlook for the company’s future.
