MASTERINVEST Kapitalanlage GmbH has established a new position in Verizon Communications Inc. (NYSE: VZ) by acquiring 94,544 shares valued at approximately $4,091,000. This acquisition was disclosed in the firm’s most recent Form 13F filing with the Securities and Exchange Commission for the second quarter of 2023.
Several other institutional investors have also made changes to their holdings in Verizon. Bulwark Capital Corp purchased shares worth about $25,000, while Advantage Trust Co increased its stake by an impressive 549.5%, acquiring an additional 500 shares to total 591 shares valued at $26,000. 1 North Wealth Services LLC and RMG Wealth Management LLC have also joined the ranks of new investors, with stakes worth approximately $29,000 and $30,000 respectively. Additionally, Global Trust Asset Management LLC raised its stake in Verizon by 222.2%, now owning 725 shares valued at $31,000. Currently, hedge funds and institutional investors collectively own 62.06% of Verizon’s stock.
Analysts Adjust Ratings for Verizon Communications
Analysts have recently reassessed their ratings for Verizon. On October 30, 2023, Royal Bank of Canada reduced its price target from $46.00 to $44.00, maintaining a “sector perform” rating. Weiss Ratings downgraded Verizon shares from a “buy (B-)” rating to a “hold (C+)” rating on October 24, 2023. Meanwhile, The Goldman Sachs Group initiated coverage with a “buy” rating and a target price of $49.00 on September 2, 2023.
Other analysts have also revised their expectations, with Morgan Stanley decreasing its price objective from $48.00 to $47.00, while Wall Street Zen shifted its rating from “buy” to “hold” on September 26, 2023. Currently, two research analysts rate Verizon with a “Strong Buy,” six assign a “Buy,” and twelve have issued a “Hold” rating. According to MarketBeat.com, Verizon holds an average rating of “Moderate Buy” with a target price of $47.31.
Verizon Communications’ Stock Performance and Financial Outlook
Verizon’s stock opened at $40.91 on the market, with a 50-day moving average of $40.42 and a 200-day moving average of $42.24. The company has a market capitalization of $172.49 billion, a PE ratio of 8.74, and a debt-to-equity ratio of 1.19. Its stock has seen a twelve-month low of $37.58 and a high of $47.35.
In its quarterly earnings report released on October 29, 2023, Verizon announced an earnings per share (EPS) of $1.21, surpassing the consensus estimate of $1.19 by $0.02. The company recorded a revenue of $33.82 billion, slightly below analyst expectations of $34.19 billion, although this represented a year-over-year increase of 1.5%. Analysts predict an EPS of $4.69 for the current fiscal year.
Verizon also confirmed a quarterly dividend of $0.69 per share, scheduled for payment on February 2, 2024. Stockholders of record on January 12, 2024, will qualify for this dividend, which reflects an annualized rate of $2.76 and a yield of 6.7%. The company’s current payout ratio stands at 58.97%.
Verizon Communications Inc. operates through its subsidiaries, providing a wide array of communications, technology, information, and entertainment products and services globally, divided into two primary segments: the Verizon Consumer Group and the Verizon Business Group.
