Verizon Communications Inc. (VZ) Stock: Why It’s Falling

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Verizon Communications Inc. (VZ) is making a move down in the market in today’s trading session. The stock, one that is focused in the tech sector, is currently priced at $59.76 after falling 2.52% so far in today’s session. In terms of technology companies, there are several aspects that have the potential to cause declines in the market. One of the most common is news. Here are the most recent trending headlines associated with VZ:

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Mar-22-19 01:37PM Small Caps, Tech Stocks Slammed Amid Plunging Bond Yields; Verizon Leads Dow Jones
01:24PM Final Trades: Verizon, XPO, Pfizer, Alphabet and BB&T
10:54AM Telecom Stock Roundup: Verizon to Launch 5G, Qualcomm’s U.S. Verdict & More
09:43AM The Zacks Analyst Blog Highlights: Verizon, Goldman Sachs, Kinder Morgan, Citigroup and Stanley Black
08:31AM Better Buy: Verizon vs. CenturyLink

Nonetheless, any time investors are making an investing decision, prospective investors should look at much more than news, especially in the ever changing tech space. Here’s what’s going on with Verizon Communications Inc..

The Performance That We’ve Seen From VZ

Although a move down in a single session, like what we’re seeing from Verizon Communications Inc. might cause fear in some investors, a single session move by itself should not be the basis of a decision to, or not to, buy a company’s stock. It is generally a good idea to look at trends experienced by the stock for a period longer than a single session. As it relates to VZ, below are the movements that investors have seen:

  • Past 5 Sessions – Throughout the past five trading sessions, VZ has seen a change in price that amounts to 2.35%.
  • Past Month – The monthly ROI from Verizon Communications Inc. comes to 6.43%.
  • Past 3 Months – In the past 3 months, the company has generated a ROI that works out to 6.98%
  • Past Six Months – Throughout the past 6 months, we’ve seen a performance that amounts to 11.70% from the stock.
  • Year To Date – Since the the last trading session of last year VZ has produced a return on investment of 6.30%.
  • Full Year – Finally, in the past full year, we have seen performance that works out to 26.40% from VZ. Over this period, the stock has sold at a high of -2.96% and a low price of 29.67%.

Key Ratios

Looking at a few key ratios having to do with a company can provide traders an understanding of just how risky and/or rewarding a pick might be. Here are a few of the most important ratios to think about when looking at VZ.

Short Ratio – The short ratio is a measure of short interest. The higher this ratio, the more investors have a belief that the price of the stock is headed for declines. In general, strong tech stocks can come with a lower short ratio. On the other hand, we tend to see quite a few short squeezes in the sector. Nonetheless, as it relates to Verizon Communications Inc., it’s short ratio clocks in at 1.88.

Quick & Current Ratios – The quick and current ratios are tools that are used to get an idea of the company’s liquidity. Basically, they measure the company’s abilities to pay for its debts as they mature based on quick assets or current assets. In the technology sector, several companies rely heavily on the continuation of support from investors as they work to bring new technologies to market, the current and quick ratios can be upsetting. Nonetheless, quite a few good picks in the tech industry do have good current and quick ratios. As it relates to VZ, the quick and current ratios total up to 0.90 and 0.90 respectively.  

Book To Share Value – The book to share value compares the the price of shares to the current book value of assets that are owned by the company. In this case, the book to share value ratio is 12.85.

Cash To Share Value – Finally, the cash to share value comparison compares the total cash on hand to the value of the company’s stock. In this case, the cash to share value works out to 0.66.

Moves From Big Money Players

One thing I’ve come to understand so far in my brief period in existence has been that smart money tends to follow big money investors. That is to say, investors that want to play it relatively safe will keep their eyes on moves made by institutional investors and insiders. With that said, how does the big money flow as it relates to VZ? Here’s the scoop:

  • Institutions – At the moment, institutional investors own 68.50% of VZ. However, it is worth mentioning that institutional ownership has seen a move in the amount of 1.81% throughout the last quarter.
  • Insider Holdings – with regard to insiders, members of the management team and others close to VZ currently hold 0.03% of Verizon Communications Inc.. Their ownership of the company has changed in the amount of -17.39% in the last 3 months.

How Analysts Feel About Verizon Communications Inc.

Although it’s not a good idea to blindly follow the thoughts of analysts, it is a smart idea to use their analysis in order to validate your own thoughts before making an investment decision in the tech industry. Below you’ll find the recent moves that we have seen from analysts when it comes to VZ.

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Dec-12-18 Downgrade Morgan Stanley Overweight → Equal-Weight
Dec-03-18 Downgrade JP Morgan Overweight → Neutral
Oct-29-18 Reiterated Morgan Stanley Overweight $56 → $58
Sep-04-18 Downgrade MoffettNathanson Buy → Neutral
Sep-04-18 Downgrade Barclays Overweight → Equal Weight $56 → $50

Financial Results And Expectations

What have ween seen from VZ in terms of financial results?Here is the data:

  • Analyst Expectations – Currently, Wall Street analysts have expectations that VZ will generate earnings per diluted share in the amount of 4.78, with 1.17 being reported in the next financial report. Although this information is not associated with earnings, since we are chatting on the topic of analysts, the stock is presently graded as a 2.50 when rated on a scale from 1 to 5 on which 1 is the poorest possible Wall St. analyst grade and 5 is the best rating.
  • 5-Year Sales – Throughout the past 5 years, Verizon Communications Inc. has announced a change in sales volume that adds up to 1.70%. Earnings per share through the last 5 years have generated movement in the amount of -1.20%.
  • Quarter Over Quarter – when it comes to quarter over quarter data, or Q/Q data as it is commonly explained in today’s society, the company has created a change in earnings that amounts to 0.40%. VZ has also seen movement in terms of revenue that comes to a total of 1.00%.

Float Information

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 4.14B shares of Verizon Communications Inc. outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, VZ has a float of 4.13B.

I also like to look at the short percentage of the float. Think about it, when a large portion of the float is sold short, the overall feeling among investors is that the stock is headed for a dive. With regard to VZ, the percentage of the float that is currently being sold short sits at 0.69%. Most investors would say that a high short percent of the float would be any percentage over 40%. However, I have calculated that anything over 26% is likely a play that comes with hefty risk.

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