In perhaps what is the largest promotion ever announced, in order to get cellular customers to switch networks, Verizon Communications Inc. (NYSE:VZ) has said that they will pay up to $650 per line to get you to switch over from competitors such as Sprint and T-mobile. That $650 will be in the form of a gift card, sent to you approximately two months after you signup.
The reaction from investors this morning has been very mild, as shares of Verizon Communications Inc. (NYSE:VZ) are trading down just 0.09%. The promotion is a hefty one though — one that could actually bring many members over to the service from competitors.
The money, in the form of a gift card, will be used to pay for early termination fees, and device lease payments still owed to customers’ previous cellular companies. This is not limited to one phone either. If you have multiple lines on one account, you are entitled to up to $650 per line. Verizon Communications Inc. (NYSE:VZ) hopes that this promotion is enough to get a good amount of new subscribers just in time for the New Year.
The stock increased 0.03% or $0.01 during the last trading session, hitting $46.72. About 300 shares traded hands. VZ has declined 5.85% since May 22, 2015 and is downtrending. It has underperformed the S&P500 by 3.58%.
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 7.15% above today’s ($46.72) 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 improved, 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 buys, and 1 insider 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 $1.26M.
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 $190.06 billion. The Company’s divisions include Wireless and Wireline. It has 18.59 P/E ratio. The Wireless segment includes the Cellco Partnership doing business as Verizon Wireless.