Verizon Communications (NYSE:VZ) Shares Up 1.3% - Here's Why

Key Points

• Verizon shares rose 1.3% to about $46.34, supported by its participation in a wireless venture with AT&T and T-Mobile designed to improve coverage in rural and remote areas.
• Verizon remains attractive to income-focused investors, offering an annualized dividend of $2.83 per share and a yield of roughly 6.1%–6.2%.
• Analysts maintain a consensus “Hold” rating with a $50.90 target price; however, SpaceX’s emerging direct-to-phone satellite service represents a competitive threat despite Verizon’s recent earnings beat.

Shares of Verizon Communications Inc. (NYSE:VZ - Get Free Report) traded up 1.3% during mid-day trading on Thursday. The stock traded as high as $46.55 and last traded at $46.3440. Approximately 19,473,273 shares changed hands during trading, a decline of 28% from the average session volume of 26,933,293 shares. The stock had previously closed at $45.77.

Trending Headlines about Verizon Communications

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

• Positive Sentiment: Verizon joined AT&T and T-Mobile in a wireless venture aimed at reducing coverage gaps in rural areas and remote travel corridors. The initiative could improve network reach, emergency communications and future satellite/direct-to-device services, potentially strengthening Verizon’s long-term competitive position. Verizon Communications Joins Wireless Venture To Close U.S. Coverage Gaps
• Positive Sentiment: Investors continue to view Verizon as a potentially attractive income stock as higher interest rates pressure telecom and other high-yield sectors. Verizon’s quarterly dividend of $0.7075 per share represents an annualized payout of $2.83 and a yield of about 6.2%, supporting demand from value and income-oriented investors. 3 U.S. Dividend Stocks for Higher Rates Including Verizon
• Neutral Sentiment: Former Verizon Chairman and CEO Hans Vestberg joined Humanitas AI as a senior adviser and investor. The appointment may enhance Vestberg’s profile in the AI infrastructure sector, but it does not appear to have a direct financial impact on Verizon. Former Verizon Chairman and CEO Hans Vestberg Joins Humanitas
• Neutral Sentiment: Verizon is preparing network assets and emergency crews ahead of Tropical Storm Isaias. The response should protect service reliability and public-safety communications, though storm-related deployment and repair costs could create modest operating pressure. Verizon Readies Network for Tropical Storm Isaias
• Negative Sentiment: The FCC’s approval of a path for SpaceX to provide direct-to-phone satellite service increases the competitive threat to Verizon and other wireless carriers. Satellite connectivity could reduce carriers’ control over service in remote areas and require additional network investment or strategic partnerships. SpaceX Gets Permission to Compete With AT&T and Verizon From Orbit
• Negative Sentiment: CEO Kyle Malady sold 1,100 shares worth approximately $50,325 under a pre-arranged Rule 10b5-1 plan. The sale reduced his holdings by only about 1%, making it a limited signal, but repeated insider sales may add modest pressure. Verizon CEO Sells 1,100 Shares

Wall Street Analysts Forecast Growth

VZ has been the topic of several research analyst reports. Royal Bank Of Canada upped their price objective on Verizon Communications from $46.00 to $47.00 and gave the company a "sector perform" rating in a research note on Monday, July 27th. Morgan Stanley upped their price target on Verizon Communications from $50.00 to $52.00 and gave the company an "equal weight" rating in a research report on Monday, July 27th. Barclays lifted their price objective on Verizon Communications from $45.00 to $46.00 and gave the stock an "equal weight" rating in a report on Monday, July 27th. Wells Fargo & Company upped their price objective on shares of Verizon Communications from $43.00 to $47.00 and gave the company an "equal weight" rating in a report on Monday, July 27th. Finally, Freedom Capital upgraded shares of Verizon Communications to a "hold" rating in a research report on Friday, June 12th. Eight investment analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. According to data from MarketBeat.com, Verizon Communications currently has a consensus rating of "Hold" and a consensus target price of $50.90.

Verizon Communications Stock Performance

The company has a quick ratio of 0.57, a current ratio of 0.60 and a debt-to-equity ratio of 1.36. The company has a market capitalization of $192.55 billion, a PE ratio of 12.07, a PEG ratio of 1.56 and a beta of 0.26. The company has a 50-day moving average price of $48.28 and a two-hundred day moving average price of $47.13.

Verizon Communications (NYSE:VZ - Get Free Report) last issued its earnings results on Friday, July 24th. The cell phone carrier reported $1.30 EPS for the quarter, topping the consensus estimate of $1.27 by $0.03. Verizon Communications had a return on equity of 19.48% and a net margin of 11.64%.The business had revenue of $34.25 billion during the quarter, compared to the consensus estimate of $35.16 billion. During the same quarter last year, the company earned $1.22 EPS. The firm'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. Analysts predict that Verizon Communications Inc. will post 5.03 EPS for the current fiscal year.

Verizon Communications Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, November 2nd. Investors of record on Friday, October 9th will be paid a dividend of $0.7075 per share. The ex-dividend date of this dividend is Friday, October 9th. This represents a $2.83 annualized dividend and a yield of 6.1%. Verizon Communications's payout ratio is currently 73.70%.

Insiders Place Their Bets

In other Verizon Communications news, CEO Kyle Malady sold 1,100 shares of the stock in a transaction that occurred on Tuesday, October 6th. The shares were sold at an average price of $45.75, for a total value of $50,325.00. Following the sale, the chief executive officer directly owned 102,166 shares in the company, valued at $4,674,094.50. This represents a 1.07% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 7,700 shares of company stock worth $372,922. Corporate insiders own 0.03% of the company's stock.

Institutional Trading of Verizon Communications

Several institutional investors and hedge funds have recently modified their holdings of the business. USS Investment Management Ltd boosted its stake in shares of Verizon Communications by 4.6% during the 1st quarter. USS Investment Management Ltd now owns 713,156 shares of the cell phone carrier's stock valued at $35,790,000 after purchasing an additional 31,354 shares in the last quarter. Cornerstone Capital Inc. raised its stake in Verizon Communications by 8.6% in the second quarter. Cornerstone Capital Inc. now owns 317,284 shares of the cell phone carrier's stock worth $13,434,000 after buying an additional 25,156 shares in the last quarter. University of Texas Texas AM Investment Management Co. raised its stake in Verizon Communications by 127.0% in the second quarter. University of Texas Texas AM Investment Management Co. now owns 184,170 shares of the cell phone carrier's stock worth $7,798,000 after buying an additional 103,046 shares in the last quarter. CPC Advisors LLC lifted its holdings in Verizon Communications by 76.4% in the first quarter. CPC Advisors LLC now owns 123,287 shares of the cell phone carrier's stock worth $6,189,000 after buying an additional 53,405 shares during the period. Finally, Lansforsakringar Fondforvaltning AB publ boosted its position in Verizon Communications by 3.1% during the 1st quarter. Lansforsakringar Fondforvaltning AB publ now owns 2,450,129 shares of the cell phone carrier's stock valued at $122,996,000 after acquiring an additional 73,159 shares in the last quarter. Hedge funds and other institutional investors own 62.06% of the company's stock.

Verizon Communications Company Profile

Verizon Communications Inc is a telecommunications company headquartered in New York City and listed on the New York Stock Exchange under the symbol VZ. The company was formed in 2000 through the merger of Bell Atlantic and GTE and has developed into one of the largest communications providers in the United States.

Verizon's consumer business provides wireless voice and data services, smartphones and other connected devices, home internet, broadband, and related communications products.

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