Pinnacle Wealth Management Group Inc. has reduced its holdings in shares of Verizon Communications Inc. by 4.7% during the second quarter of 2023, according to its latest Form 13F filing with the Securities and Exchange Commission. Following the sale of 1,431 shares, Pinnacle now owns 29,325 shares of the telecommunications company, valued at approximately $1,269,000.
This adjustment comes amid a broader trend among institutional investors, with several hedge funds either increasing or decreasing their stakes in Verizon. Notably, Kestra Investment Management LLC elevated its position by an impressive 121.8% in the first quarter, acquiring an additional 96,931 shares for a total of 176,531 shares, valued at around $8,007,000.
Similarly, Cadinha & Co. LLC significantly expanded its holdings in the second quarter, increasing its stake by 2,916.8%. This brought its total ownership to 347,716 shares, equating to a value of $15,046,000 after purchasing an additional 336,190 shares. Furthermore, DekaBank Deutsche Girozentrale raised its position by 11.0%, now holding 7,297,469 shares valued at $309,551,000, following a purchase of 722,559 shares during the same period.
Other notable changes include Element Capital Management LLC, which established a new position in Verizon worth approximately $2,799,000, and Ritholtz Wealth Management, which increased its stake by 23.8%, now owning 205,416 shares valued at $8,888,000. Currently, institutional investors and hedge funds collectively own 62.06% of Verizon’s stock.
Analysts Adjust Price Targets for Verizon
Recent evaluations from equity analysts have led to varied price targets for Verizon’s stock. Bank of America raised its price target from $45.00 to $49.00, maintaining a “neutral” rating. Meanwhile, The Goldman Sachs Group initiated coverage with a “buy” rating and set a target of $49.00. Conversely, Weiss Ratings downgraded its rating from “buy (b-)” to “hold (c+)”.
Furthermore, Morgan Stanley updated its price objective from $47.00 to $48.00, while Arete Research elevated its rating to “strong-buy”. Overall, three analysts have given Verizon a Strong Buy rating, five have rated it as a Buy, and thirteen have issued a Hold rating, resulting in a consensus rating of “Moderate Buy” and a target price of $47.41, according to data from MarketBeat.
Verizon’s Market Performance and Dividend Announcement
As of last Friday, Verizon’s stock opened at $38.83. The company boasts a market capitalization of $163.70 billion, a P/E ratio of 9.05, and a PEG ratio of 2.89. Its fifty-day moving average stands at $42.84, while the 200-day moving average is $42.96. Verizon’s shares have fluctuated between a 52-week low of $37.58 and a high of $47.35.
In addition to its stock performance, Verizon has announced a quarterly dividend of $0.69 per share, which will be paid on November 3, 2023. Stockholders of record on October 10, 2023, will receive this dividend, marking an increase from the previous quarterly dividend of $0.68. This adjustment reflects a commitment to returning value to shareholders, with an annualized dividend amounting to $2.76 and a dividend yield of 7.1%. The company’s payout ratio currently stands at 64.34%.
Verizon Communications Inc. operates globally through its subsidiaries, providing a range of communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities. The company is segmented into the Verizon Consumer Group and the Verizon Business Group, underscoring its extensive reach in the telecommunications domain.
