Verizon Communications Inc. experienced a drop of 1.3% during mid-day trading on Tuesday following a downgrade from BNP Paribas Exane, which changed its rating from outperform to neutral, setting a new price target of $44.00 for the stock. Throughout the trading session, Verizon shares were seen fluctuating, reaching as low as $40.13 before closing at $40.29, reflecting an increase in trading volume to 29,770,328 shares, 39% above the average session volume of 21,481,074 shares.
Other analysts have provided mixed reviews of Verizon. Recently, Bank of America raised its target price from $45.00 to $49.00, maintaining a neutral rating. Arete Research upgraded Verizon to a “strong-buy” rating, whereas Wall Street Zen downgraded the stock from buy to hold. Weiss Ratings reaffirmed a “buy (b-)” rating, while Goldman Sachs initiated coverage with a “buy” rating and a $49.00 price target. Cumulatively, three analysts classify the stock as a Strong Buy, six as Buy, and twelve as Hold, giving Verizon an average rating of “Moderate Buy” with a consensus price target of $47.41.
Recently, large institutional investors have also shown interest in Verizon. Notably, Bulwark Capital Corp and Garde Capital Inc. made new investments in the company, while Advantage Trust Co significantly increased its stake by over 549% in the last quarter. Institutional and hedge funds collectively own approximately 62.06% of Verizon’s stock.
In terms of financial performance, Verizon has a debt-to-equity ratio of 1.19, with a quick ratio of 0.60 and a current ratio of 0.64. The company’s stock is currently valued at a market capitalization of $169.88 billion, with a price-to-earnings ratio of 9.39. In its recent earnings report for the quarter ending July 21, Verizon reported earnings per share (EPS) of $1.22, outperforming analysts’ expectations, and a revenue of $34.50 billion, reflecting a year-over-year increase of 5.2%.
The company also announced a dividend increase, declaring a quarterly dividend of $0.69 per share, set to be paid on November 3rd to shareholders on record by October 10th. This raised dividend reflects Verizon’s positive outlook, providing shareholders with a yield of 6.9%.
Verizon Communications continues to establish itself as a significant player in the communications, technology, and entertainment sectors for consumers, businesses, and government agencies worldwide. With a steady performance and favorable growth potential, Verizon is well-positioned in the market despite the recent fluctuations in stock ratings.