Verizon Communications Inc. (VZ): Do You Trade Extreme Moves?

Taking everything into account, Verizon Communications Inc. (NYSE:VZ) scores 16% Buy on the technical side. The stock is also flashing a Buy from the Barchart TrendSpotter trading system. Traders hoping to speculate on the VZ’s short-term trajectory should know that short terms indicators for the stock averaged 40% Sell with an average daily trading volume over the past 20 days at 17962625 shares. VZ stock has overall a 0.25% Buy signal considering medium term indicators and the 50-day average daily volume remained almost 18390809 shares. It’s also worth noting that the stock, whose average daily volume over the 100 days prior to this writing was shares, is 67% Buy on the basis of long term indicators.

The share price is currently staying around the first support level of $57.28. Below this, the next support is placed in the zone of $56.48. Till the time, the VZ stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 48.28 on daily chart, which may remain a cause for concern. If the price breaks below $56.48 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $58.76 mark may result into a pull-back move towards $59.44 level.

Verizon Communications Inc. (VZ) is projected to climb by 0.36 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $65-month high price target. This represents a whopping 11.91 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $59, which represents a return potential of 1.58 percent when compared to the closing price of the stock of $58.08 on Thursday, December 06. The lowest price target for the stock is $50 — slightly more than -13.91 percent from VZ’s current share price.

Here’s a rundown of insider trading activity for sense of Verizon Communications Inc. (NYSE:VZ). The earliest insider trade took place on 05/01/2018. Skiadas Anthony T parted with a total of 1.97 thousand shares of company at average share price of $49.44. The total for the sales was set at $97.59 thousand. After this transaction, the SVP & Controller account balance stood at 17.99 thousand shares. The stock grew 17.5 percent since that insider sale. On 02/13/2018, Skiadas Anthony T, SVP & Controller, sold 6.97 thousand shares at a price per share of $49.8. This removed 346.96 thousand shares from the insider’s fortune and the stock saw a 16.65 percent rally in value since the news became public. This transaction left 17.97 thousand shares in the SVP & Controller account. On 11/27/2017, EVP of PubPolicy & Gen Counsel Silliman Craig L. performed a sale transaction worth $28.92 thousand. This sale at $47.41 each has eliminated 0.61 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded 22.53 percent increase since the transaction was reported. The insider now is left with 7.03 thousand shares remaining in the account. Silliman Craig L., who performs the EVP of PubPolicy & Gen Counsel job, sold 0.61 thousand shares for $29.66 thousand. The disposal occurred on 10/27/2017 was priced at $48.62 per share. The share price soared 19.48 percent since the reporting date. Silliman Craig L. now left with a stake of 9.7 thousand VZ stock worth $563.43 thousand after the insider selling.

VZ shares dropped -0.01 points or -0.02 percent on Thursday to $58.08 with a heavy trade volume of 25.566 million shares. After opening the session at $58.18, the shares went as high as $58.64 and as low as $57.16, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $240 billion and now has 4.14 billion shares outstanding. Verizon Communications Inc. (VZ) stock has gained 1.52 percent of market value in 21 trading days.

Analysts at JP Morgan cut their rating on shares of Verizon Communications Inc. (NYSE:VZ) from Overweight to Neutral in their opinion released on December 03. Morgan Stanley analysts again handed out a Overweight rating to VZ stock but they lifted target price for the shares in a flash note to investors on October 29. The price target has been raised from $56 to $58. Morgan Stanley, analysts launched coverage of VZ stock with a Overweight rating, according to their flash note to investors on October 29. Analysts at MoffettNathanson downgraded the stock to a Neutral call from its previous Buy stance, in a research note that dated back to September 04.

VZ stock has a trailing 3-year beta of 0.49, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $3.75 a share in the trailing twelve months. The stock’s value has surged 9.73 percent year to date (YTD) against a rise of 14.06 percent in 12 month’s time. The company’s shares still trade -5.68 percent away from its 1-year high of $61.58 and 26.03 percent up from 52-week low of $46.08. The average consensus rating on the company is 2.4, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of Verizon Communications Inc. (VZ) are trading at a P/E ratio of 16.18 times earnings reported for the past 12 months. The industry VZ operates in has an average P/E of 19.46. Its P/E ratio went as low as 10.58X and as high as 19.35 over the 5-year span. Further, it is sporting a 1.84 on the Price-to-Sales ratio. Compare this with the industry average P/S of 3. 57.7 percent is the gross profit margin for Verizon Communications Inc. and operating margin sits at 19.2 percent. Along with this, the net profit margin is 24.7 percent.

VZ will be declaring its Q4 financial results on January 29. Analysts are forecasting revenue to climb 1.3 percent to $34.4B in the next fiscal quarter, while earnings are seen soaring by nearly 26.74 percent to $1.09 per share. History has shown that shares in Verizon Communications Inc. have gone down on 19 different earnings reaction days and are predicted to add 0.02 percent when the company reports upcoming earnings. In last reported earnings results, it earned $1.22 per share, better than the $1.19, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $32.6B, better than the $32.5B analysts expected. Earnings are estimated to increase by 1.3 percent this year, 0.92 percent next year and continue to increase by 5.9 percent annually for the next 5 years.