Verizon Communications (NYSE:VZ) Stock Price Down 2.5% - Here's What Happened

Key Points

• Verizon shares fell 2.5% to roughly $46.47 on elevated trading volume, with the stock remaining below its 50-day and 200-day moving averages.
• Verizon beat quarterly EPS expectations, but revenue declined 0.7% year over year and missed forecasts. Analysts maintain a consensus “Hold” rating with an average price target of $50.97.
• The company declared a quarterly dividend of $0.7075 per share, representing a 6.1% annualized yield; however, a contractor-caused fiber cut that disrupted air-traffic data raised concerns about network resilience and operational oversight.

Verizon Communications Inc. (NYSE:VZ - Get Free Report) shares were down 2.5% during trading on Tuesday . The stock traded as low as $46.17 and last traded at $46.4660. Approximately 32,425,447 shares traded hands during mid-day trading, an increase of 18% from the average daily volume of 27,434,910 shares. The stock had previously closed at $47.68.

Verizon Communications News Summary

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

• Positive Sentiment: Strong free-cash-flow growth: Verizon’s second-quarter free cash flow reportedly increased 24.4%, supported by cost savings and network investments. The improvement has encouraged expectations for stronger 2026 growth and supports the company’s dividend and debt-management capacity. Verizon Delivers Strong Free Cash Flow Growth
• Positive Sentiment: Optical-network expansion: Verizon reached an agreement with Corning to purchase more than 80 million fiber miles through 2032, supporting backhaul modernization and longer-term network capacity. The deal could improve infrastructure efficiency, although it also represents ongoing capital spending. Meta Platforms’ Petal Cable Puts Corning at the Center of AI’s Bandwidth Boom
• Positive Sentiment: Visible marketing partnership: Verizon’s Visible brand is teaming with Learfield to reach college sports fans at USC, Oregon, Minnesota and Rutgers. The initiative may increase brand visibility and customer acquisition, but its near-term financial impact is likely limited. Learfield and Visible Team Up
• Neutral Sentiment: Operational and valuation backdrop: Verizon trades at a relatively modest earnings multiple and offers exposure to recurring wireless revenue, but its latest reported quarterly revenue declined year over year despite an earnings beat. Analysts’ outlook therefore remains dependent on subscriber trends, cost control and capital intensity.
• Negative Sentiment: Fiber cut disrupted air-traffic data: A contractor accidentally cut a Verizon fiber cable in New Jersey, interrupting a backup data feed used by air-traffic controllers and contributing to widespread flight delays in the Northeast. Although service was restored and the incident was not described as a cyberattack, it raises concerns about network resilience, operational oversight and potential reputational or regulatory consequences. Verizon Says Contractor Cut Fiber Cable

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on VZ. BNP Paribas Exane lowered their target price on shares of Verizon Communications from $46.00 to $44.00 and set a "neutral" rating on the stock in a report on Tuesday, July 14th. Moffett Nathanson reduced their price target on Verizon Communications from $56.00 to $49.00 and set a "neutral" rating for the company in a research report on Monday, July 20th. Freedom Capital upgraded Verizon Communications to a "hold" rating in a research note on Friday, June 12th. Royal Bank Of Canada upped their price target on Verizon Communications from $46.00 to $47.00 and gave the company a "sector perform" rating in a research report on Monday, July 27th. Finally, Wells Fargo & Company increased their price target on shares of Verizon Communications from $43.00 to $47.00 and gave the stock an "equal weight" rating in a report on Monday, July 27th. Eight analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $50.97.

Verizon Communications Stock Down 2.5%

The company has a market cap of $193.06 billion, a PE ratio of 12.10, a P/E/G ratio of 1.63 and a beta of 0.26. The stock has a 50-day moving average of $47.92 and a 200-day moving average of $47.50. 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 posted 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. The business had revenue of $34.25 billion during the quarter, compared to analysts' expectations of $35.16 billion. Verizon Communications had a return on equity of 19.48% and a net margin of 11.64%.The firm's revenue was down .7% on a year-over-year basis. During the same period in the previous year, the business earned $1.22 earnings per share. Verizon Communications has set its FY 2026 guidance at 4.990-5.040 EPS. Sell-side analysts predict that Verizon Communications Inc. will post 5.03 earnings per share for the current fiscal year.

Verizon Communications Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, November 2nd. Stockholders of record on Friday, October 9th will be issued 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 dividend yield of 6.1%. Verizon Communications's payout ratio is presently 73.70%.

Insider Buying and Selling at Verizon Communications

In related news, CEO Kyle Malady sold 1,100 shares of the firm's stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $49.98, for a total value of $54,978.00. Following the sale, the chief executive officer directly owned 106,566 shares of the company's stock, valued at $5,326,168.68. This trade represents a 1.02% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 4,400 shares of company stock valued at $219,142 in the last quarter. 0.03% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Verizon Communications

A number of hedge funds and other institutional investors have recently bought and sold shares of VZ. State Street Corp grew its position in Verizon Communications by 3.5% in the fourth quarter. State Street Corp now owns 222,951,399 shares of the cell phone carrier's stock worth $9,080,810,000 after acquiring an additional 7,461,335 shares in the last quarter. Geode Capital Management LLC raised its position in Verizon Communications by 0.9% during the fourth quarter. Geode Capital Management LLC now owns 102,632,509 shares of the cell phone carrier's stock valued at $4,168,080,000 after purchasing an additional 867,694 shares in the last quarter. Bank of America Corp DE lifted its stake in Verizon Communications by 15.4% during the first quarter. Bank of America Corp DE now owns 62,101,021 shares of the cell phone carrier's stock worth $3,117,471,000 after purchasing an additional 8,289,877 shares during the last quarter. Norges Bank purchased a new position in shares of Verizon Communications in the 4th quarter worth about $2,357,158,000. Finally, Bank of New York Mellon Corp boosted its holdings in shares of 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 worth $1,915,882,000 after purchasing an additional 6,580,820 shares in the last quarter. 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 related technology services. Its offerings include mobile voice and data plans, 5G connectivity, fixed wireless access, fiber-optic internet through Verizon Fios, home services, and connected-device solutions.

Through Verizon Business, the company serves enterprises, government agencies, and other organizations with communications networks, managed connectivity, cybersecurity, cloud and edge-computing services, unified communications, and Internet of Things solutions.

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