Verizon Communications (NYSE:VZ) Shares Down 3.3% - Time to Sell?

Key Points

• Verizon shares fell 3.3% to about $43.18 on elevated trading volume, despite the company reporting adjusted third-quarter EPS of $1.31, above the $1.27 consensus estimate.
• Operating momentum remained positive: Verizon added 406,000 postpaid phone customers, increased its outlook for postpaid additions and free cash flow, and signed a more-than-$2 billion AI infrastructure agreement with Amazon Web Services.
• Analysts maintain a generally cautious stance, with a consensus “Hold” rating and an average price target of $50.80. Verizon also offers a $0.7075 quarterly dividend, equivalent to a 6.6% annualized yield.

Verizon Communications Inc. (NYSE:VZ - Get Free Report) shares dropped 3.3% during mid-day trading on Monday. The stock traded as low as $42.47 and last traded at $43.1760. 45,150,469 shares traded hands during mid-day trading, an increase of 65% from the average session volume of 27,409,156 shares. The stock had previously closed at $44.66.

Key Verizon Communications News

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

• Positive Sentiment: Verizon reported third-quarter adjusted earnings of $1.31 per share, above the $1.27 analyst consensus, while net income increased year over year. Strong margins and cost controls helped earnings grow faster than revenue. Verizon Communications Q3 Earnings Surpass Estimates
• Positive Sentiment: Wireless momentum was a major bright spot: Verizon added 406,000 postpaid phone customers, its strongest third-quarter result in five years, along with 137,000 postpaid accounts. Broadband additions totaled 314,000. Verizon Delivers Another Record-Breaking Quarter
• Positive Sentiment: The company raised its 2026 outlook for adjusted EPS, postpaid phone additions and free cash flow. Verizon now expects approximately 1.1 million to 1.2 million postpaid phone additions and free-cash-flow growth approaching 12%. Verizon Raises 2026 Outlook
• Positive Sentiment: Verizon signed an agreement valued at more than $2 billion with Amazon Web Services to expand AI infrastructure, providing a potential new growth and fiber-network opportunity. Verizon Lifts Outlook and Inks Amazon Deal

Wall Street Analysts Forecast Growth

Several analysts have recently commented on VZ shares. Morgan Stanley increased their target price on Verizon Communications from $50.00 to $52.00 and gave the stock an "equal weight" rating in a report on Monday, July 27th. Weiss Ratings restated a "buy (b)" rating on shares of Verizon Communications in a research note on Wednesday, August 26th. Barclays lifted their price target on Verizon Communications from $45.00 to $46.00 and gave the company an "equal weight" rating in a report on Monday, July 27th. Moffett Nathanson decreased their price objective on shares of Verizon Communications from $56.00 to $49.00 and set a "neutral" rating on the stock in a report on Monday, July 20th. Finally, Royal Bank Of Canada boosted their target price on shares of Verizon Communications from $46.00 to $47.00 and gave the stock a "sector perform" rating in a research note on Monday, July 27th. Eight analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $50.80.

Verizon Communications Price Performance

The stock has a market capitalization of $179.39 billion, a P/E ratio of 11.24, a PEG ratio of 1.70 and a beta of 0.26. The company has a current ratio of 0.60, a quick ratio of 0.57 and a debt-to-equity ratio of 1.36. The company has a fifty day simple moving average of $47.57 and a two-hundred day simple moving average of $46.63.

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. Sell-side analysts expect that Verizon Communications Inc. will post 5.03 EPS for the current fiscal year.

Verizon Communications Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, November 2nd. Shareholders of record on Friday, October 9th will be given a dividend of $0.7075 per share. The ex-dividend date is Friday, October 9th. This represents a $2.83 annualized dividend and a dividend yield of 6.6%. Verizon Communications's payout ratio is presently 73.70%.

Insider Buying and Selling at Verizon Communications

In other 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 transaction, the chief executive officer directly owned 99,966 shares in the company, valued at $4,446,487.68. This trade represents a 1.09% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 9,900 shares of company stock valued at $469,073. Corporate insiders own 0.03% of the company's stock.

Institutional Investors Weigh In On Verizon Communications

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Cornerstone Financial Management LLC lifted its holdings in shares of Verizon Communications by 6.2% in the second quarter. Cornerstone Financial Management LLC now owns 3,568 shares of the cell phone carrier's stock valued at $151,000 after purchasing an additional 207 shares in the last quarter. RKL Wealth Management LLC grew its holdings in shares of Verizon Communications by 4.3% during the first quarter. RKL Wealth Management LLC now owns 5,338 shares of the cell phone carrier's stock valued at $268,000 after buying an additional 218 shares in the last quarter. Manchester Financial Inc. raised its position in Verizon Communications by 0.6% during the second quarter. Manchester Financial Inc. now owns 34,924 shares of the cell phone carrier's stock valued at $1,479,000 after buying an additional 218 shares during the period. Frazier Financial Advisors LLC raised its position in Verizon Communications by 32.7% during the first quarter. Frazier Financial Advisors LLC now owns 888 shares of the cell phone carrier's stock valued at $45,000 after buying an additional 219 shares during the period. Finally, FAS Wealth Partners Inc. raised its position in Verizon Communications by 1.2% during the first quarter. FAS Wealth Partners Inc. now owns 18,421 shares of the cell phone carrier's stock valued at $925,000 after buying an additional 223 shares during the period. 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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