Pinnacle Wealth Management Group Inc. has reduced its stake in Verizon Communications Inc. (NYSE: VZ) by 4.7% during the second quarter, according to a recent Form 13F filing with the Securities and Exchange Commission. The firm now holds 29,325 shares of the telecommunications giant after divesting 1,431 shares during the period. Pinnacle’s remaining holdings in Verizon are valued at approximately $1,269,000.
This move follows a trend among institutional investors, with various hedge funds adjusting their positions in Verizon. Notably, Kestra Investment Management LLC significantly increased its stake by 121.8% in the first quarter, acquiring an additional 96,931 shares for a total of 176,531 shares worth $8,007,000. Similarly, Cadinha & Co. LLC raised its position by an astonishing 2,916.8% in the second quarter, now holding 347,716 shares valued at $15,046,000.
DekaBank Deutsche Girozentrale also expanded its holdings, increasing its position by 11.0% to own 7,297,469 shares worth $309,551,000 after purchasing an additional 722,559 shares. Meanwhile, Element Capital Management LLC entered the scene with a new investment of approximately $2,799,000 in the first quarter. Ritholtz Wealth Management also increased its holdings by 23.8%, now owning 205,416 shares valued at $8,888,000.
The collective activities indicate that institutional investors control 62.06% of Verizon’s stock, reflecting confidence in its long-term prospects despite recent adjustments by some investors.
Analysts Adjust Price Targets for Verizon
Recent evaluations by analysts have resulted in varied price targets for Verizon’s shares. Bank of America raised its price target from $45.00 to $49.00, maintaining a “neutral” rating as of July 22. The Goldman Sachs Group initiated coverage with a “buy” rating and a price target of $49.00. In contrast, Weiss Ratings downgraded Verizon from a “buy (b-)” to a “hold (c+)” rating.
Morgan Stanley also adjusted its price objective, increasing it from $47.00 to $48.00 while retaining an “equal weight” rating. Additionally, Arete Research upgraded Verizon shares to a “strong-buy” rating on July 8. Currently, the consensus rating for Verizon Communications is classified as “Moderate Buy,” with a consensus price target of $47.41, according to data from MarketBeat.
Verizon’s Financial Overview and Future Prospects
Verizon’s stock opened at $38.83 on the trading floor, placing the company’s market capitalization at approximately $163.70 billion. The company’s price-to-earnings (P/E) ratio stands at 9.05, alongside a PEG ratio of 2.89 and a beta of 0.37. The firm has a fifty-day moving average of $42.84 and a two-hundred-day moving average of $42.96.
Verizon has also announced an increase in its quarterly dividend, which will be distributed on November 3. Shareholders recorded as of October 10 will receive a dividend of $0.69 per share, up from the previous $0.68. This adjustment reflects an annualized dividend of $2.76 and a dividend yield of 7.1%. The company’s payout ratio is currently at 64.34%, indicating a balanced approach to shareholder returns.
About Verizon Communications Inc., it provides a wide range of communications, technology, information, and entertainment services to consumers, businesses, and government entities globally. Operating through two primary segments—Verizon Consumer Group and Verizon Business Group—the company remains a pivotal player in the telecommunications landscape.
