Verizon Communications (NYSE:VZ) Stock Jumps 2.6% - Should You Buy?

Key Points

• Verizon shares rose 2.6% to $44.81 after the company reported adjusted EPS of $1.31, beating estimates of $1.27, with revenue up 1.5% year over year and improved 2026 guidance.
• The stock offers a significant income component, with a 6.3% dividend yield, 20 consecutive years of payout increases and dividends representing roughly 49% of recent free cash flow.
• Despite the positive results, analyst sentiment remains mixed: Verizon has a consensus “Hold” rating and a $51.05 average price target, while concerns include declining phone upgrades, high debt, insider selling and potential long-term SpaceX competition.

Verizon Communications Inc. (NYSE:VZ - Get Free Report)'s share price shot up 2.6% during trading on Friday. The company traded as high as $45.16 and last traded at $44.81. Approximately 26,593,471 shares were traded during trading, a decline of 3% from the average session volume of 27,420,668 shares. The stock had previously closed at $43.66.

Verizon Communications News Roundup

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

• Positive Sentiment: Better earnings and higher guidance: Verizon reported quarterly adjusted EPS of $1.31, above the $1.27 consensus estimate, while revenue rose 1.5% year over year. Growth in postpaid phone additions and broadband, lower promotional spending and margin expansion helped support an increase to the company’s 2026 outlook. Verizon raises 2026 guidance
• Positive Sentiment: Income appeal remains strong: Verizon’s dividend yield is above 6%, the company has raised its payout for 20 consecutive years, and dividends consumed approximately 49% of recent free cash flow. This supports the view that the payout is financially sustainable despite Verizon’s substantial debt load. Verizon dividend analysis
• Positive Sentiment: Analyst upgrade and supplier investment: Freedom Broker upgraded VZ from “hold” to “buy” and raised its price target to $55. Separately, Verizon announced a $5 billion, five-year commitment to U.S. small-business suppliers, which could strengthen procurement relationships and support its network expansion ecosystem. Freedom Broker upgrade
• Neutral Sentiment: SpaceX competition remains a long-term issue: Verizon CEO Dan Schulman said a fully competitive SpaceX wireless network could take years and require enormous investment. Verizon remains open to a Starlink partnership, but not one that would enable direct competition through Verizon’s infrastructure. Verizon CEO on Starlink partnership
• Negative Sentiment: Countervailing concerns: Several firms, including Barclays, Daiwa, Goldman Sachs and TD Cowen, lowered their price targets. Investors are also watching reports of declining phone upgrades, while CEO Kyle Malady’s recurring Rule 10b5-1 stock sales may weigh modestly on sentiment. Verizon phone upgrade trend

Analyst Ratings Changes

Several brokerages recently weighed in on VZ. Royal Bank Of Canada increased their price target on shares of Verizon Communications from $46.00 to $47.00 and gave the stock a "sector perform" rating in a report on Monday, July 27th. Arete Research dropped their price objective on shares of Verizon Communications from $71.00 to $62.00 and set a "buy" rating on the stock in a report on Thursday, October 1st. The Goldman Sachs Group dropped their price objective on shares of Verizon Communications from $51.00 to $47.00 in a report on Tuesday. Weiss Ratings reiterated a "buy (b)" rating on shares of Verizon Communications in a research note on Wednesday, August 26th. Finally, Morgan Stanley reduced their target price on shares of Verizon Communications from $52.00 to $50.00 and set an "equal weight" rating for the company in a report on Tuesday. Thirteen research analysts have rated the stock with a Buy rating and sixteen have issued a Hold rating to the company. Based on data from MarketBeat.com, Verizon Communications has a consensus rating of "Hold" and a consensus target price of $51.05.

Verizon Communications Stock Performance

The company has a market capitalization of $186.18 billion, a price-to-earnings ratio of 11.43, a price-to-earnings-growth ratio of 1.75 and a beta of 0.26. The firm has a fifty day simple moving average of $47.13 and a 200 day simple moving average of $46.71. The company has a debt-to-equity ratio of 1.33, a current ratio of 0.63 and a quick ratio of 0.57.

Verizon Communications (NYSE:VZ - Get Free Report) last announced its earnings results on Monday, October 26th. The cell phone carrier reported $1.31 earnings per share for the quarter, topping the consensus estimate of $1.27 by $0.04. Verizon Communications had a return on equity of 19.75% and a net margin of 11.78%. The business had revenue of $34.31 billion during the quarter, compared to the consensus estimate of $34.77 billion. During the same period in the prior year, the company posted $1.21 EPS. The business's quarterly revenue was up 1.5% on a year-over-year basis. On average, analysts anticipate that Verizon Communications Inc. will post 5.08 earnings per share for the current fiscal year.

Verizon Communications Announces Dividend

The business 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 (DPR) is presently 72.19%.

Insider Transactions at Verizon Communications

In other news, CEO Kyle Malady sold 1,100 shares of Verizon Communications stock in a transaction dated Tuesday, October 27th. The shares were sold at an average price of $43.00, for a total value of $47,300.00. Following the sale, the chief executive officer owned 98,866 shares in the company, valued at $4,251,238. This trade represents a 1.10% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 11,000 shares of company stock worth $516,373 over the last quarter. Company insiders own 0.03% of the company's stock.

Institutional Trading of Verizon Communications

Institutional investors and hedge funds have recently modified their holdings of the stock. MFG Investments LLC acquired a new position in shares of Verizon Communications in the third quarter valued at approximately $625,000. Provenance Wealth Advisors LLC raised its stake in shares of Verizon Communications by 8,917.5% during the third quarter. Provenance Wealth Advisors LLC now owns 10,280 shares of the cell phone carrier's stock worth $472,000 after purchasing an additional 10,166 shares during the last quarter. Associated Banc Corp acquired a new stake in shares of Verizon Communications during the third quarter worth $2,713,000. Putney Financial Group LLC acquired a new stake in shares of Verizon Communications during the third quarter worth $47,000. Finally, Integrity Alliance LLC. lifted its holdings in shares of Verizon Communications by 41.4% during the third quarter. Integrity Alliance LLC. now owns 74,735 shares of the cell phone carrier's stock worth $3,428,000 after purchasing an additional 21,896 shares during the period. 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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