Verizon Communications Inc (NYSE: VZ)’s stock price has increased by 1.15 compared to its previous closing price of 38.34. However, the company has seen a 2.57% increase in its stock price over the last five trading sessions. fool.com reported 2025-01-19 that Many dividend stocks lost their luster in 2022 and 2023 as rising interest rates drove jittery investors toward safer CDs, Treasury bills, and other fixed-income investments. However, many of those high-yielding dividend stocks stabilized in 2024 as the Federal Reserve finally implemented three interest rate cuts.
Is It Worth Investing in Verizon Communications Inc (NYSE: VZ) Right Now?
Verizon Communications Inc (NYSE: VZ) has a price-to-earnings ratio of 16.72x that is above its average ratio. Additionally, the 36-month beta value for VZ is 0.44. There are mixed opinions on the stock, with 6 analysts rating it as a “buy,” 6 rating it as “overweight,” 14 rating it as “hold,” and 0 rating it as “sell.”
The public float for VZ is 4.21B and currently, short sellers hold a 1.36% ratio of that float. The average trading volume of VZ on January 20, 2025 was 19.00M shares.
VZ’s Market Performance
VZ stock saw a decrease of 2.57% in the past week, with a monthly decline of -5.14% and a quarterly a decrease of -11.68%. The volatility ratio for the week is 1.30%, and the volatility levels for the last 30 days are 1.43% for Verizon Communications Inc (VZ). The simple moving average for the last 20 days is -1.42% for VZ stock, with a simple moving average of -6.02% for the last 200 days.
Analysts’ Opinion of VZ
Many brokerage firms have already submitted their reports for VZ stocks, with Bernstein repeating the rating for VZ by listing it as a “Mkt Perform.” The predicted price for VZ in the upcoming period, according to Bernstein is $48 based on the research report published on December 10, 2024 of the previous year 2024.
Goldman gave a rating of “Buy” to VZ, setting the target price at $50 in the report published on July 01st of the previous year.
VZ Trading at -5.49% from the 50-Day Moving Average
After a stumble in the market that brought VZ to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -14.51% of loss for the given period.
Volatility was left at 1.43%, however, over the last 30 days, the volatility rate increased by 1.30%, as shares sank -4.90% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -5.55% lower at present.
During the last 5 trading sessions, VZ rose by +2.57%, which changed the moving average for the period of 200-days by -8.84% in comparison to the 20-day moving average, which settled at $39.34. In addition, Verizon Communications Inc saw -3.03% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at VZ starting from Silliman Craig L., who proposed sale 9,258 shares at the price of $44.27 back on Dec 02 ’24. After this action, Silliman Craig L. now owns shares of Verizon Communications Inc, valued at $409,852 using the latest closing price.
Silliman Craig L., the Officer of Verizon Communications Inc, proposed sale 9,259 shares at $42.13 during a trade that took place back on Nov 01 ’24, which means that Silliman Craig L. is holding shares at $390,082 based on the most recent closing price.
Stock Fundamentals for VZ
Current profitability levels for the company are sitting at:
- 0.16 for the present operating margin
- 0.6 for the gross margin
The net margin for Verizon Communications Inc stands at 0.07. The total capital return value is set at 0.07. Equity return is now at value 10.10, with 2.56 for asset returns.
Based on Verizon Communications Inc (VZ), the company’s capital structure generated 0.64 points at debt to capital in total, while cash flow to debt ratio is standing at 0.2. The debt to equity ratio resting at 1.81. The interest coverage ratio of the stock is 3.31.
Currently, EBITDA for the company is 40.14 billion with net debt to EBITDA at 4.35. When we switch over and look at the enterprise to sales, we see a ratio of 2.48. The receivables turnover for the company is 4.96for trailing twelve months and the total asset turnover is 0.35. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.61.
Conclusion
In conclusion, Verizon Communications Inc (VZ) has seen bad performance in recent times. Analysts have a bullish opinion on the stock, with some rating it as a “buy” and others rating it as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
