What The Financials Tell Us About Verizon Communications Inc. (VZ)

Verizon Communications Inc. (NYSE:VZ) finished Tuesday with an addition of $0.01 to close at $54.51, an upside of 0.02 percent. An average of 16,712,539 shares of common stock have been traded in the last five days. There was a gain of $0.35 in the past week. The last 20 days have seen an average of 17,113,680 shares traded, while the 50-day average volume stands at 14,780,722.

VZ stock has decreased by -1.66% in the last month. The company shares reached their 1-month lowest point of $53.92 on 10/01/21. With the stock rallying to its 52-week high on 05/10/21, shares of the company touched a low of $53.83 and a high of $61.95 in 52 weeks. In spite of this, the price is down -12.01% from the 52-week high.


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Insider Transactions

29 days have passed since Verizon Communications Inc. (VZ) last reported insider trading activity. SILLIMAN CRAIG L., who is EVP&ChiefAdminLegal&PubPolOff, most recently acquired $1,554 shares at $55.38 per share on Sep 07. In this transaction, the insider spent $86,061. EVP and Group CEO-VZ Media, Gowrappan Kumara Guru, disposed of 14,077 shares at a price of $55.56 on Aug 11. The insider now owns more than $782,118 worth of shares. Prior to that, EVP&ChiefAdminLegal&PubPolOff SILLIMAN CRAIG L. went on to Sale 1,554 shares at $55.57 each on Aug 04. An amount of $86,356 was transacted.

Valuation Metrics

Verizon Communications Inc. (VZ) has a trailing price-to-earnings (P/E) ratio of 11.30, which compares with the 17.20 for the broader industry and 30.30 for the sector. This means investors are optimistic about the stock’s future prospects. In the last five years, Verizon Communications Inc.’s PE ratio has ranged between 16.97 and 6.079. The stock’s beta is 0.45. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 1.69, the price-to-book (PB) ratio at 3.06, and the price-to-cash flow ratio at 19.94.

Verizon Communications Inc. will next go ex-dividend on 7-Oct-2021. The next dividend payment Verizon Communications Inc. will make is expected to be $0.64.

The quick ratio of Verizon Communications Inc. for the three months ended June 29 was 0.90, and the current ratio was 0.90, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 1.97 and a total debt to equity ratio of 2.06 for the quarter ending June 29. On the profitability front, the trailing 12-month gross margin is 58.70% against a 5-year average of 58.4%. Verizon Communications Inc.’s EBITDA margin for the year ending June 29 is 36.31%, while its operating margin for the same period stands at 22.30%. Its gross profit as reported stood at $28.8 billion compared to revenue of $128.29 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Verizon Communications Inc.’s return on assets was 6.10%, compared to 7.2% over the last five years. In the past year, the return on investment has been 10.90%, and the 5-year average is 14.0%. Meanwhile, the return on equity (ROE) for the past 12 months has been 28.80% and the 5-year average holds at 50.5%. For the broader industry, ROE averaged 4.52 over the past year.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Verizon Communications Inc. (VZ) price momentum. RSI 9-day as of the close on 05 October was 52.72%, suggesting the stock is Neutral, with historical volatility in this time frame at 7.03%.

As of today, VZ’s price is $54.34 +0.65% or $0.35 from its 5-day moving average. VZ is currently trading -0.57% lower than its 20-day SMA and -7.31% lower than its 100-day SMA. However, the stock’s current price level is -2.28% below the SMA50 and -9.17% below the SMA200.

The stochastic %K and %D were 56.66% and 40.03%, respectively, and the average true range (ATR) was 0.51. With the 14-day stochastic at 63.69% and the average true range at 0.49, the RSI (14) stands at 48.79%. The stock has reached 0.09 on the 9-day MACD Oscillator while the 14-day reading was at 0.14.

Analyst Ratings

Loop Capital launched coverage on Verizon Communications Inc. (NYSE: VZ) in its analyst report released on September 21, 2021. The firm assigned the stock a a Hold rating.The consensus rating for Verizon Communications Inc. (VZ) among analysts is Hold. According to current brokerage recommendations, 1 brokerage firm advise that investors sell VZ, while 19 suggest investors hold. There are 1 analyst who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 6 others rate it as a “buy”.

What is VZ’s price target for the next 12 months?

Analysts predict a range of price targets between $52.00 and $68.00, with a median target of $60.00. Taking a look at these predictions, the average price target given by analysts for Verizon Communications Inc. (VZ) stock is $60.45.

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