While earlier this month AT&T introduced new plans for providing users with the option of unlimited data, today Verizon Communications Inc. (NYSE:VZ) squashed hope that they too will follow in their competitor’s footsteps.
“At this point, we are not going to entertain unlimited,” Verizon Chief Financial Officer Fran Shammo said.
Verizon had had unlimited data plans in the past, but as mobile devices began using greater amounts of data, streaming high definition video and other data-intensive applications, the company was forced to take a step back and introduce limits to their data plans. While this is bad news for Verizon Communications Inc. (NYSE:VZ) customers, it’s likely good news for shareholders as such plans could be quite expensive for the company.
The stock is up 2.17% or $1 following the news, hitting $46.87 per share. About 11.10M shares traded hands. VZ has declined 2.96% since June 17, 2015 and is downtrending. It has outperformed the S&P500 by 5.91%.
From a total of 11 analysts covering Verizon Communications Inc. (NYSE:VZ) stock, 5 rate it a “Buy”, 1 a “Sell”, and 5 a “Hold”. This means that 45% of the ratings are positive. The highest target price is $54 while the lowest target price is $44. The mean of all analyst targets is $50.06 which is 6.81% above today’s ($46.87) stock price. Verizon Communications Inc. was the topic of 15 analyst reports since July 22, 2015 according to the firm StockzIntelligence Inc. Citigroup maintained shares on October 21 with a “Neutral” rating. Zacks upgraded shares to a”Hold” rating and a $53 target share price in their report from an August 14. Argus Research maintained VZ stock in a recent report from October 21 with a “Buy” rating. Vetr downgraded the rating on August 11. Vetr has a “Buy” rating and a $48.62 price target on shares. Finally, Nomura initiated the stock with a “Neutral” rating in a report they issued on an October 16.
The institutional sentiment increased to 1.19 in Q2 2015. It’s up 0.05, from 1.14 in 2015Q2. The ratio increased, as 68 funds sold all their Verizon Communications Inc. shares they owned while 651 reduced their positions. 89 funds bought stakes while 770 increased their total positions. Institutions now own 2.31 billion shares which is 8.50% less than the previous share count of 2.52 billion in 2015Q2.
American Investment Services Inc. holds 10.12% of its total portfolio in Verizon Communications Inc., equating to 417,677 shares. Quaker Capital Investments Llc owns 376,438 shares representing 9.71% of their total US portfolio. Moreover, Rathbone Brothers Plc has 9.02% of their total portfolio invested in the company, equating to 3.11 million shares. The Alabama-based 10 has a total of 8.8% of their portfolio invested in the stock. King Investment Advisors Inc Tx, a Texas-based fund reported 28,870 shares owned.
Since May 1, 2015, the stock had 0 insider buys, and 1 sale for a total of $380,674 in net activity. Walden Marni M sold 8,229 shares worth $380,674. Skiadas Anthony T sold 2,708 shares worth $137,404. Mead Daniel S. sold 24,945 shares worth $1.26 million.
Verizon Communications Inc. is a holding firm that, acting through its subsidiaries, provides communications, information and entertainment services and products to consumers, businesses and governmental agencies. The company has a market cap of $186.82 billion. The Company’s divisions include Wireless and Wireline. It has 10.72 P/E ratio. The Wireless segment includes the Cellco Partnership doing business as Verizon Wireless.