Verizon Communications (NYSE:VZ) Shares Down 1.4% - Time to Sell?

Key Points

• Verizon shares fell 1.4% to about $44.59 on unusually heavy trading volume, with more than 51 million shares changing hands.
• The company’s roughly 6.3% dividend yield remains attractive to income investors, but its high 73.7% payout ratio and elevated leverage warrant caution.
• Investor focus is shifting to Verizon’s upcoming third-quarter earnings, while potential competition from SpaceX’s Starlink wireless service raises concerns about future pricing, subscriber growth and network returns. Wall Street maintains a consensus “Hold” rating with an average price target of $50.80.

Verizon Communications Inc. (NYSE:VZ - Get Free Report)'s share price traded down 1.4% during trading on Friday. The stock traded as low as $43.43 and last traded at $44.5860. 51,051,723 shares changed hands during trading, an increase of 87% from the average daily volume of 27,309,467 shares. The stock had previously closed at $45.20.

Verizon Communications News Roundup

Here are the key news stories impacting Verizon Communications this week:

• Positive Sentiment: Verizon’s approximately 6.5% dividend yield and $0.7075 quarterly payout remain attractive to income-oriented investors. The company’s dividend is supported by recurring telecom cash flows, although its payout ratio is relatively high. AT&T Froze Its Dividend After a 2022 Cut
• Neutral Sentiment: Verizon reports third-quarter earnings on October 26, with analysts expecting roughly $1.27 EPS. Investors will focus on wireless subscriber additions, churn, service revenue, broadband growth and management’s outlook. Strong operating metrics could offset broader competitive concerns. Verizon Q3 2026 Preview
• Neutral Sentiment: Citi estimates SpaceX’s national wireless service is unlikely to launch before 2029, but reported efforts to secure access to as many as 80,000 U.S. cell sites—and SpaceX’s roughly $8 billion spectrum deal—have raised questions about whether the timetable could move forward. Starlink Is Years Away From Competing With AT&T and Verizon
• Negative Sentiment: SpaceX’s reported negotiations with tower companies imply a potential fourth nationwide wireless competitor. Investors fear Starlink could pressure Verizon’s pricing, customer growth and returns on its network investments; the news also contributed to weakness across major wireless carriers while tower stocks benefited. SpaceX Just Made Cell Towers Cool Again
• Negative Sentiment: Erste Group Bank made a minor reduction to its FY2027 EPS forecast, lowering it to $5.25 from $5.26. The small adjustment is not significant by itself, but it reinforces the cautious analyst backdrop ahead of earnings. Verizon analyst estimate
• Negative Sentiment: CEO Kyle Malady sold 1,100 shares for approximately $48,928 under a pre-arranged Rule 10b5-1 plan. The transaction was only about 1.09% of his holdings, limiting its significance, but repeated planned sales may add modest negative sentiment. SEC insider transaction filing

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on VZ shares. BNP Paribas Exane reduced their target price on Verizon Communications from $46.00 to $44.00 and set a "neutral" rating for the company in a report on Tuesday, July 14th. Barclays lifted their price target on Verizon Communications from $45.00 to $46.00 and gave the stock an "equal weight" rating in a report on Monday, July 27th. Scotiabank cut their price objective on Verizon Communications from $51.50 to $50.00 and set a "sector outperform" rating on the stock in a research report on Friday, October 9th. TD Cowen upped their price objective on Verizon Communications from $54.00 to $56.00 and gave the company a "buy" rating in a research note on Monday, July 27th. Finally, Weiss Ratings restated a "buy (b)" rating on shares of Verizon Communications in a research note on Wednesday, August 26th. Eight equities research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $50.80.

Verizon Communications Trading Down 1.4%

The company has a debt-to-equity ratio of 1.36, a current ratio of 0.60 and a quick ratio of 0.57. The stock has a market capitalization of $185.24 billion, a PE ratio of 11.61, a PEG ratio of 1.66 and a beta of 0.26. The stock's 50 day simple moving average is $47.65 and its two-hundred day simple moving average is $46.66.

Verizon Communications (NYSE:VZ - Get Free Report) last issued its quarterly earnings results on Friday, July 24th. The cell phone carrier reported $1.30 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.27 by $0.03. The company had revenue of $34.25 billion during the quarter, compared to analyst estimates of $35.16 billion. Verizon Communications had a net margin of 11.64% and a return on equity of 19.48%. During the same quarter last year, the business posted $1.22 EPS. Verizon Communications's quarterly revenue was down .7% compared to the same quarter last year. On average, sell-side analysts expect that Verizon Communications Inc. will post 5.03 EPS for the current year.

Verizon Communications Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, November 2nd. Shareholders of record on Friday, October 9th will be issued a dividend of $0.7075 per share. This represents a $2.83 annualized dividend and a yield of 6.3%. The ex-dividend date of this dividend is Friday, October 9th. Verizon Communications's dividend payout ratio is 73.70%.

Insider Transactions at Verizon Communications

In other Verizon Communications news, CEO Kyle Malady sold 1,100 shares of the firm's stock in a transaction on Tuesday, October 20th. The stock was sold at an average price of $44.48, for a total value of $48,928.00. Following the completion of the sale, the chief executive officer directly owned 99,966 shares of the company's stock, valued at $4,446,487.68. This trade represents a 1.09% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 9,900 shares of company stock valued at $469,073 over the last three months. Company insiders own 0.03% of the company's stock.

Institutional Investors Weigh In On Verizon Communications

Large investors have recently added to or reduced their stakes in the company. Smith Chas P & Associates PA Cpas bought a new stake in Verizon Communications during the third quarter valued at approximately $726,000. Capstone Capital Management Ltd bought a new position in shares of Verizon Communications in the 3rd quarter worth $592,000. Range Financial Group LLC increased its holdings in shares of Verizon Communications by 2.6% in the 3rd quarter. Range Financial Group LLC now owns 104,036 shares of the cell phone carrier's stock worth $4,772,000 after buying an additional 2,649 shares during the last quarter. Newman Dignan & Sheerar Inc. increased its holdings in shares of Verizon Communications by 1.2% in the 3rd quarter. Newman Dignan & Sheerar Inc. now owns 26,408 shares of the cell phone carrier's stock worth $1,211,000 after buying an additional 310 shares during the last quarter. Finally, MBM Wealth Consultants LLC raised its position in shares of Verizon Communications by 21.5% during the 3rd quarter. MBM Wealth Consultants LLC now owns 14,860 shares of the cell phone carrier's stock valued at $682,000 after buying an additional 2,628 shares in the last quarter. Hedge funds and other institutional investors own 62.06% of the company's stock.

About Verizon Communications

Verizon Communications Inc is a telecommunications company that provides wireless communications, broadband, and digital connectivity services. Through its consumer business, Verizon offers mobile voice and data plans, smartphones and other connected devices, home internet, fixed wireless access, and fiber-optic broadband services under the Fios brand.

Verizon also serves businesses, government agencies, and other organizations with wireless connectivity, private networks, internet and data services, managed communications, cloud and security solutions, and Internet of Things services.

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