Verizon shares rebound on Wednesday, company to set up new tech hub for Verizon Media in San Jose

Verizon Communications Inc (VZ) said earlier this week that it would co-develop and lease to purchase a new campus for its Verizon Media unit. The new hub is to be established from the ground up at the Coleman Highline campus in San Jose, California.

Verizon shares closed higher for the fourth time in the past thirteen trading sessions in New York on Wednesday. It has also been the sharpest daily surge since July 10th. The stock went up 0.88% ($0.49) to $55.97, after touching an intraday high at $56.24, or a price level not seen since July 22nd ($56.58).

Shares of Verizon Communications Inc have retreated 0.44% so far in 2019 compared with a 20.45% gain for the benchmark index, S&P 500 (SPX).

In 2018, Verizon’s stock went up 6.22%, thus, it outperformed the S&P 500, which registered a 6.24% loss.

The Coleman Highline campus in San Jose is expected to support 3 400 Verizon workers, including 2 400 people who will be relocated from Verizon Media’s current site in Sunnyvale, Santa Clara, California. The company signed a long-term lease of nearly 640 000 square feet in several buildings. The latter are to include a welcome pavilion and multiple workplace amenities such as a cafeteria, a fitness center among others.

“We are embarking on the next chapter of Verizon Media’s journey here in Silicon Valley, Guru Gowrappan, Chief Executive Officer of Verizon Media, said in a statement.

“This move will allow us to build a fully customized and sustainable new campus from scratch with employee’s being a part of this journey helping to design their workplace of the future. My goal is to bring a new energy to our home and ensure it is best suited to the teams’ needs and culture,” Gowrappan added.

Analyst stock price forecast and recommendation

According to CNN Money, the 20 analysts, offering 12-month forecasts regarding Verizon Communications Inc’s stock price, have a median target of $61.50, with a high estimate of $67.00 and a low estimate of $50.00. The median estimate represents a 9.88% upside compared to the closing price of $55.97 on July 24th.

The same media also reported that at least 16 out of 26 surveyed investment analysts had rated Verizon Communications Inc’s stock as “Hold”, while 10 – as “Buy”.