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For many, there's only one investor who can instigate major moves in issues from 13F filings and that's Warren Buffett. The announcement of his new stake in Verizon Communications VZ has the issue firmly in the green in Wednesday’s session.
Beyond Out Of Favor: No one wants to own shares of Verizon. Even with its hefty 4.5% dividend yield and low forward P/E of 10.8, investors seem to have no interest. The reason being, several issues (especially smaller caps) are having double-digit percentage gains on a daily basis.
This applies not only to Verizon but similar issues in the sector and many others as well.
Underperformer In 2021: After coming within a whisker of making a new all-time high in December, the issue peaked at $61.95 and backed off to end the year at $58.74. After failing to crack the $60 level in January, it went into retreat mode. Interestingly, the issue reached its lowest level since June, when it bottomed in Tuesday’s session at $53.83.
Keep in mind that Buffett’s filing reflects his actions over the last three months of 2020, signaling that his stake was bought a premium to Tuesday’s close.
After the close on Tuesday, Buffett announced a new Verizon stake of 146.7 million shares. In a related move, he increased his exposure in T-Mobile US Inc. TMUS by 1.36% to 5.2 million shares.
Buy, Buy, Buy: From Tuesday’s close of $54.15, the issue sprinted to end the after-hours session at $55.80. The momentum carried over into the premarket session, peaking at $56.50. It began the regular session at $56, bottomed at $55.63 early in the session and resume its move higher.
It has continued to make new highs for the session, with the current one standing at $56.72 as of 12 p.m. ET. Based on the daily price action, the next two highs come in at the pair of highs from the Jan. 26 high ($56.96) and Jan. 27 high of $57.28.
Image credit: Anthony92931, via Wikimedia Commons
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