Verizon (VZ) Interested in Yahoo Acquisition According to CEO


It’s been one heck of a last couple of months for shareholders of Yahoo (NASDAQ:YHOO), with lots of confusion, rumors, and no clear direction from the company or its board of directors. Today, yet another tidbit of information has emerged, this time from Verizon Communications Inc. (NYSE:VZ), CEO Lowell McAdam who told CNBC this morning that his company does have some interest in a possible acquisition of Yahoo (NASDAQ:YHOO). McAdam confirmed the suspicion of many investors that Verizon was considering putting a bid in for Yahoo’s core assets, saying that they could perhaps marry some of the assets with their AOL assets.

While this seems like a good move for Verizon Communications Inc. (NYSE:VZ), price is likely something both companies will need to consider carefully. Shares of both Verizon and Yahoo are trading down more than 1% in the pre-market this morning. The stock increased 1.03% or $0.52 during the last trading session, hitting $50.95. About 2,510 shares traded hands. VZ has risen 7.99% since July 2, 2015 and is uptrending. It has outperformed the S&P500 by 16.86%.

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 -1.75% below today’s ($50.95) 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.

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 $209.53 billion. The Company’s divisions include Wireless and Wireline. It has 11.66 P/E ratio. The Wireless segment includes the Cellco Partnership doing business as Verizon Wireless.