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

Key Points

• Verizon shares opened sharply lower, falling from $44.54 to $43.00 before recovering slightly, amid a broader wireless-sector selloff and concerns about competition, debt and limited earnings upside.
• Investors are awaiting third-quarter results, with attention on customer additions, wireless-service revenue and management guidance. Verizon’s favorable customer trends, fiber expansion, low valuation and 6.6% dividend yield provide potential support.
• Analysts maintain a broadly cautious stance, with a consensus “Hold” rating and $50.80 price target; eight analysts rate the stock a Buy while twelve recommend holding it.

Verizon Communications Inc. (NYSE:VZ - Get Free Report) gapped down before the market opened on Wednesday. The stock had previously closed at $44.54, but opened at $43.00. Verizon Communications shares last traded at $43.7420, with a volume of 3,927,078 shares.

Trending Headlines about Verizon Communications

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

• Positive Sentiment: Verizon enters its earnings release with favorable customer trends, continued fiber expansion and an attractive valuation, while analysts expect single-digit year-over-year EPS growth. These factors could support the stock if results and guidance meet or exceed expectations. Is Verizon Stock Worth Buying Ahead of Q3 Earnings Release?
• Positive Sentiment: Verizon’s defensive profile and high-yield appeal may attract income-oriented investors, particularly with the shares trading at a relatively modest earnings multiple. Find Out How Much Passive Income $50,000 Generates in These 4 High Yield Stocks
• Neutral Sentiment: Verizon is scheduled to report third-quarter results in the coming week. Investors are focused on whether customer additions, wireless service revenue and management guidance can validate expectations for earnings growth. What You Need to Know Ahead of Verizon Communications’ Earnings Release
• Negative Sentiment: Wireless stocks sold off broadly even after AT&T reported a quarterly beat and raised its outlook, suggesting investors remain concerned about the sector’s growth and competitive outlook. Verizon and T-Mobile also declined in sympathy. AT&T Sinks Despite Q3 Beat and Raised Outlook
• Negative Sentiment: Analysts cite intense competition, Verizon’s elevated debt burden and the risk that the company may not deliver a meaningful earnings beat. These concerns are limiting enthusiasm ahead of the report. Verizon Reports Next Week: Wall Street Expects Earnings Growth
• Negative Sentiment: Starlink’s satellite connectivity ambitions and weaker customer-experience scores for legacy wireless carriers add longer-term competitive pressure, potentially challenging Verizon’s pricing power and customer retention. Elon Musk Says Starlink Is Rewriting Telecom

Analyst Ratings Changes

A number of brokerages have commented on VZ. Wells Fargo & Company increased their price objective on shares of Verizon Communications from $43.00 to $47.00 and gave the company an "equal weight" rating in a research report on Monday, July 27th. Morgan Stanley lifted their price objective on shares of Verizon Communications from $50.00 to $52.00 and gave the stock an "equal weight" rating in a research report on Monday, July 27th. TD Cowen boosted their target price on shares of Verizon Communications from $54.00 to $56.00 and gave the stock a "buy" rating in a research note on Monday, July 27th. Weiss Ratings reiterated a "buy (b)" rating on shares of Verizon Communications in a research note on Wednesday, August 26th. Finally, Royal Bank Of Canada increased their target price on Verizon Communications from $46.00 to $47.00 and gave the company a "sector perform" rating in a report on Monday, July 27th. Eight investment analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company. According to MarketBeat.com, Verizon Communications currently has an average rating of "Hold" and a consensus price target of $50.80.

Verizon Communications Stock Performance

The company has a market cap of $179.05 billion, a PE ratio of 11.23, a price-to-earnings-growth ratio of 1.69 and a beta of 0.26. The firm has a fifty day simple moving average of $47.78 and a 200-day simple moving average of $46.74. The company has a quick ratio of 0.57, a current ratio of 0.60 and a debt-to-equity ratio of 1.36.

Verizon Communications (NYSE:VZ - Get Free Report) last announced its earnings results on Friday, July 24th. The cell phone carrier reported $1.30 EPS for the quarter, beating analysts' consensus estimates of $1.27 by $0.03. Verizon Communications had a net margin of 11.64% and a return on equity of 19.48%. The business had revenue of $34.25 billion during the quarter, compared to analysts' expectations of $35.16 billion. During the same period in the prior year, the company earned $1.22 earnings per share. The business's revenue was down .7% compared to the same quarter last year. Verizon Communications has set its FY 2026 guidance at 4.990-5.040 EPS. On average, research analysts forecast that Verizon Communications Inc. will post 5.03 EPS for the current fiscal year.

Verizon Communications Dividend Announcement

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

Insiders Place Their Bets

In other news, CEO Kyle Malady sold 1,100 shares of Verizon Communications stock in a transaction dated Tuesday, October 13th. The shares were sold at an average price of $42.93, for a total transaction of $47,223.00. Following the completion of the sale, the chief executive officer directly owned 101,066 shares in the company, valued at $4,338,763.38. The trade was a 1.08% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 8,800 shares of company stock valued at $420,145. Insiders own 0.03% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Bank of America Corp DE boosted its stake in Verizon Communications by 15.4% in the 1st quarter. Bank of America Corp DE now owns 62,101,021 shares of the cell phone carrier's stock valued at $3,117,471,000 after purchasing an additional 8,289,877 shares during the period. Bank of New York Mellon Corp grew its holdings in Verizon Communications by 20.8% in the 1st quarter. Bank of New York Mellon Corp now owns 38,164,982 shares of the cell phone carrier's stock valued at $1,915,882,000 after buying an additional 6,580,820 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its position in Verizon Communications by 14.1% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 41,173,226 shares of the cell phone carrier's stock worth $1,743,274,000 after buying an additional 5,075,794 shares during the period. Dimensional Fund Advisors LP increased its position in Verizon Communications by 6.4% during the 1st quarter. Dimensional Fund Advisors LP now owns 32,734,998 shares of the cell phone carrier's stock worth $1,643,339,000 after buying an additional 1,972,634 shares during the period. Finally, Deutsche Bank AG lifted its holdings in shares of Verizon Communications by 6.7% during the second quarter. Deutsche Bank AG now owns 20,882,074 shares of the cell phone carrier's stock worth $884,147,000 after buying an additional 1,305,471 shares in the last quarter. 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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