Verizon Communications (NYSE:VZ) Shares Down 1.8% on Insider Selling

Key Points

• Verizon shares fell 1.8% to $43.16 after CEO Kyle Malady sold 1,100 shares for $47,300 under a pre-arranged Rule 10b5-1 plan. The sale reduced his holdings by approximately 1.1% and represents a relatively minor sentiment headwind.
• Verizon’s latest quarter showed adjusted EPS of $1.31, beating estimates of $1.27, while postpaid phone additions reached 406,000. However, revenue of $34.31 billion missed the $34.77 billion consensus, contributing to concerns about modest top-line growth.
• Analysts have generally maintained a cautious outlook, with a consensus “Hold” rating and average price target of $50.58 after several firms lowered targets. Verizon continues to offer a $0.7075 quarterly dividend, equivalent to a 6.6% annualized yield.

Verizon Communications Inc. (NYSE:VZ - Get Free Report) shares were down 1.8% on Wednesday after an insider sold shares in the company. The stock traded as low as $43.07 and last traded at $43.16. Approximately 25,226,352 shares traded hands during mid-day trading, a decline of 8% from the average session volume of 27,418,029 shares. The stock had previously closed at $43.93.

Specifically, CEO Kyle Malady sold 1,100 shares of the business's stock in a transaction that occurred on Tuesday, October 27th. The stock was sold at an average price of $43.00, for a total transaction of $47,300.00. Following the transaction, the chief executive officer owned 98,866 shares in the company, valued at approximately $4,251,238. The trade was a 1.10% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analyst Weigh In

Several analysts have weighed in on the company. Morgan Stanley lowered their target price on Verizon Communications from $52.00 to $50.00 and set an "equal weight" rating on the stock in a report on Tuesday. Scotiabank decreased their target price on shares of Verizon Communications from $51.50 to $50.00 and set a "sector outperform" rating for the company in a research note on Friday, October 9th. Arete Research cut their target price on shares of Verizon Communications from $71.00 to $62.00 and set a "buy" rating on the stock in a research note on Thursday, October 1st. Weiss Ratings reissued a "buy (b)" rating on shares of Verizon Communications in a report on Wednesday, August 26th. Finally, Barclays reduced their target price on shares of Verizon Communications from $46.00 to $44.00 and set an "equal weight" rating for the company in a report on Tuesday. Twelve analysts have rated the stock with a Buy rating and seventeen have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $50.58.

More Verizon Communications News

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

• Positive Sentiment: Strong Q3 execution and raised outlook: Verizon reported adjusted EPS of $1.31, above the $1.27 consensus, while adding 406,000 postpaid phone customers. Management raised its 2026 outlook for postpaid net additions, EPS, and free cash flow, citing lower promotional costs and broadband expansion. Verizon Q3 Earnings Call Highlights Growth and AI Expansion
• Positive Sentiment: AI and fiber opportunities could support future growth: Verizon has signed approximately $4 billion in AI-infrastructure contracts, including a $2 billion dark-fiber agreement with Amazon Web Services and business involving Alphabet. Its fiber capacity commitments with Corning also position it to benefit from rising data-center connectivity demand. Verizon Q3: Mr. Market Is Giving Away Over 6 Percent Yield After Another Record Quarter
• Positive Sentiment: Cash generation and dividends remain investor support: Verizon generated $7.8 billion in third-quarter free cash flow, while analysts continue to highlight its high dividend yield, defensive wireless operations, and potential for further dividend growth. Verizon: This 6 Percent Telecom Yield Is Still On Sale
• Neutral Sentiment: Starlink presents both a risk and potential partnership: CEO Dan Schulman said Verizon could work with satellite providers such as Starlink where connectivity is complementary, but would not allow Starlink to use Verizon’s network to compete directly for mobile customers. He also argued that SpaceX remains years and potentially hundreds of billions of dollars away from becoming a major wireless rival. Verizon CEO Open to Working With Elon Musk’s Starlink
• Neutral Sentiment: Verizon Frontline launched a public-safety app developer competition with a $25,000 prize. The initiative may strengthen Verizon’s enterprise and first-responder ecosystem, but is unlikely to materially affect near-term financial results. Verizon Frontline Challenges Innovators to Build Future of Public Safety
• Negative Sentiment: Revenue missed expectations: Quarterly revenue increased 1.5% year over year to $34.31 billion, below the $34.77 billion consensus. The shortfall, along with concerns about slower phone upgrades and modest top-line growth, overshadowed the earnings beat and subscriber gains. Why Verizon Stock Is Down Today
• Negative Sentiment: Analysts lowered price targets: Goldman Sachs, Morgan Stanley, Barclays, Citigroup, Daiwa, BNP Paribas Exane, and TD Cowen all reduced targets after the results, although several maintained Buy or Equal Weight ratings and still see upside from current levels. Verizon Analysts Cut Their Forecasts Following Q3 Earnings
• Negative Sentiment: CEO Kyle Malady sold 1,100 shares under a pre-arranged Rule 10b5-1 plan. The relatively small, scheduled transaction reduced his holdings by about 1.1%, so it is a minor sentiment headwind rather than a fundamental signal. SEC Insider Trading Filing

Verizon Communications Stock Down 1.8%

The stock has a market cap of $179.32 billion, a P/E ratio of 11.01, a PEG ratio of 1.70 and a beta of 0.26. The company has a debt-to-equity ratio of 1.36, a quick ratio of 0.57 and a current ratio of 0.60. The firm's 50-day moving average is $47.35 and its two-hundred day moving average is $46.68.

Verizon Communications (NYSE:VZ - Get Free Report) last issued its earnings results on Monday, October 26th. The cell phone carrier reported $1.31 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.27 by $0.04. The company had revenue of $34.31 billion for the quarter, compared to analyst estimates of $34.77 billion. Verizon Communications had a net margin of 11.64% and a return on equity of 19.48%. The company's revenue for the quarter was up 1.5% on a year-over-year basis. During the same quarter last year, the firm earned $1.21 EPS. On average, equities research analysts anticipate that Verizon Communications Inc. will post 5.04 earnings per share for the current year.

Verizon Communications Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, November 2nd. Stockholders of record on Friday, October 9th will be paid a dividend of $0.7075 per share. This represents a $2.83 dividend on an annualized basis and a dividend yield of 6.6%. The ex-dividend date is Friday, October 9th. Verizon Communications's dividend payout ratio (DPR) is currently 73.70%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of VZ. Partners Wealth Management LLC lifted its holdings in Verizon Communications by 159.5% during the 3rd quarter. Partners Wealth Management LLC now owns 13,493 shares of the cell phone carrier's stock worth $619,000 after purchasing an additional 8,294 shares during the last quarter. Founders Financial Securities LLC increased its position in Verizon Communications by 3.4% during the 3rd quarter. Founders Financial Securities LLC now owns 24,396 shares of the cell phone carrier's stock worth $1,119,000 after buying an additional 799 shares during the period. Blueprint Investment Partners LLC lifted its holdings in shares of Verizon Communications by 26.3% during the third quarter. Blueprint Investment Partners LLC now owns 43,026 shares of the cell phone carrier's stock worth $1,974,000 after buying an additional 8,959 shares in the last quarter. ERn Financial LLC bought a new position in Verizon Communications during the third quarter worth about $244,000. Finally, Crew Capital Management Ltd boosted its holdings in Verizon Communications by 13.7% in the 3rd quarter. Crew Capital Management Ltd now owns 5,656 shares of the cell phone carrier's stock valued at $259,000 after purchasing an additional 681 shares during the period. Institutional investors and hedge funds 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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