Verizon Communications (NYSE:VZ) Stock Price Down 3.2% - What's Next?

Key Points

• Verizon shares fell 3.2% to about $49.83, while trading volume was below average. The stock’s consensus rating remains “Hold,” with an average analyst price target of $50.97.
• Verizon beat quarterly EPS expectations, reporting $1.30 per share versus $1.27 expected, but revenue of $34.25 billion missed estimates and declined 0.7% year over year.
• The company announced a quarterly dividend of $0.7075 per share, equivalent to $2.83 annually and a 5.7% yield; its payout ratio is 73.7%.

Verizon Communications Inc. (NYSE:VZ - Get Free Report) shares dropped 3.2% on Wednesday . The stock traded as low as $49.33 and last traded at $49.8280. 24,198,201 shares were traded during trading, a decline of 11% from the average session volume of 27,338,619 shares. The stock had previously closed at $51.45.

Analyst Upgrades and Downgrades

Several research firms have commented on VZ. Royal Bank Of Canada raised their target price on shares of Verizon Communications from $46.00 to $47.00 and gave the company a "sector perform" rating in a report on Monday, July 27th. Scotiabank increased their price target on shares of Verizon Communications from $51.50 to $52.50 and gave the stock a "sector outperform" rating in a research report on Monday, July 27th. TD Cowen increased their price target on shares of Verizon Communications from $54.00 to $56.00 and gave the stock a "buy" rating in a research report on Monday, July 27th. Weiss Ratings reissued a "buy (b)" rating on shares of Verizon Communications in a research note on Wednesday, August 26th. Finally, Morgan Stanley boosted their price objective on shares of Verizon Communications from $50.00 to $52.00 and gave the company an "equal weight" rating in a research report on Monday, July 27th. Eight equities research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $50.97.

Verizon Communications Stock Performance

The stock has a market cap of $207.02 billion, a price-to-earnings ratio of 12.98, a P/E/G ratio of 1.74 and a beta of 0.26. 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 50 day simple moving average of $47.43 and a 200 day simple moving average of $47.54.

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

Verizon Communications Announces Dividend

The business 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 $0.7075 dividend. The ex-dividend date is Friday, October 9th. This represents a $2.83 dividend on an annualized basis and a yield of 5.7%. Verizon Communications's dividend payout ratio (DPR) is currently 73.70%.

Insider Buying and Selling at Verizon Communications

In other Verizon Communications news, CEO Kyle Malady sold 1,100 shares of the business's stock in a transaction on Tuesday, September 8th. The shares were sold at an average price of $49.98, for a total transaction of $54,978.00. Following the sale, the chief executive officer owned 106,566 shares of the company's stock, valued at approximately $5,326,168.68. The trade was a 1.02% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 4,400 shares of company stock worth $219,142 over the last quarter. Insiders own 0.03% of the company's stock.

Institutional Investors Weigh In On Verizon Communications

Several hedge funds have recently modified their holdings of VZ. Cornerstone Financial Management LLC increased its holdings in Verizon Communications by 6.2% during the 2nd quarter. Cornerstone Financial Management LLC now owns 3,568 shares of the cell phone carrier's stock worth $151,000 after purchasing an additional 207 shares during the period. RKL Wealth Management LLC lifted its holdings in shares of Verizon Communications by 4.3% in the 1st quarter. RKL Wealth Management LLC now owns 5,338 shares of the cell phone carrier's stock worth $268,000 after buying an additional 218 shares during the period. Manchester Financial Inc. grew its position in shares of Verizon Communications by 0.6% during the 2nd quarter. Manchester Financial Inc. now owns 34,924 shares of the cell phone carrier's stock worth $1,479,000 after buying an additional 218 shares in the last quarter. Strategic Investment Solutions Inc. IL grew its position in shares of Verizon Communications by 8.6% during the 4th quarter. Strategic Investment Solutions Inc. IL now owns 2,765 shares of the cell phone carrier's stock worth $113,000 after buying an additional 219 shares in the last quarter. Finally, Frazier Financial Advisors LLC increased its stake in shares of 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. Institutional investors and hedge funds own 62.06% of the company's stock.

Verizon Communications Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.