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Verizon Stock after Berkshire Hathaway Increased Its Holdings

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Berkshire Hathaway has held Verizon since 3Q15

According to its 3Q15 filings, Berkshire Hathaway (BRK) bought more than 11 million shares of Verizon (VZ) worth $528.7 million. In its latest filings at the end of 1Q16, Berkshire reported total holdings of 15 million shares in the company.

Verizon has generated investor returns of 2.4% in the trailing 12-month period and -1.6% in the trailing one-month period. In comparison, it has generated returns of 10.1% year-to-date. The company’s share price fell 0.5% in the trailing-five-day period. Since BRK disclosed its holdings in the company, Verizon’s share price has risen 6.1%.

Verizon’s share price rose 2.8%, 2.2%, 7.2%, and 3.8% in the trailing one-month, three-month, six-month, and 12-month periods, respectively, after BRK’s disclosure of VZ holdings.

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Shareholder value

Verizon’s dividend yield rose from $0.51 in fiscal 1Q13 to $0.53 in fiscal 1Q14 and $0.55 in fiscal 1Q15. At the end of 1Q16, Verizon had a dividend yield of $0.56, or 4.2%. In comparison, peer companies AT&T (T) and Comcast (CMCSA) have dividend yields of 5% and 1.8%, respectively.

Verizon accounted for 0.63% of the BRK portfolio at the end of 1Q16 and 4.5% of the Technology Select Sector SPDR ETF (XLK).

Of the 34 analysts covering Verizon, 11 have given the stock “buy” recommendations and 23 have given it “hold” recommendations.

Analysts’ stock price target for the company is $53.50, with a median target estimate of $53. Verizon is trading at a discount of 4.1% to its median target.

In the next part, we’ll see how Verisign is doing after Berkshire Hathaway increased its holdings in the company.

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