JP Morgan Downgrade Causes Investors To Disconnect With Verizon

em>Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Verizon Communications VZ shares are trading lower by $0.90 at $48.18 in Thursday's session. Investors are taking note on JP Morgan's Phillip Cuisk's downgrade of the issue from Overweight to Neutral, but maintained its $55 price target. The move instigated a sharply lower opening ($47.88 vs. Wednesday's close of $49.08. However, shorts took advantage of the out of the ordiamry price movement (usually has range of less $1 for an entire day), to cover shorts as it bottomed on the open at $47.88 and rallied to $48.54. before resuming its decline. That low coincides with its March 12 low at $47.80. Today's price action is taking place on heavier than average volume as nearly 30M shares have changed hands compared with 20 day average of 14.7M wil over an hour remaining in the session.