Verizon Communications (NYSE:VZ) Hits New 1-Year Low - Here's Why

Key Points

• Verizon hit a new 52‑week low, trading around $40.55 on heavy volume (~28.1M shares), marking renewed downside pressure after its recent close near $40.13.
• Despite the weakness, the stock offers a high income profile — a ~6.8% yield ($0.69 quarterly, ~59% payout ratio) — and has seen institutional buying plus analyst targets in the $44–$51 range (average ~$47.47), supporting a value/income case.
• Near‑term risks are notable: reported large job cuts and social‑media concern about service/dividend sustainability, and the market is focused on Jan. 30 earnings, where any guidance or revenue miss could drive volatility.

Verizon Communications Inc. (NYSE:VZ - Get Free Report) reached a new 52-week low on Friday . The company traded as low as $10.60 and last traded at $40.5550, with a volume of 28088428 shares. The stock had previously closed at $40.13.

Trending Headlines about Verizon Communications

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

• Positive Sentiment: Institutional and analyst support — Large fund buying and recent buy ratings/prices targets from major firms signal conviction from professional investors, which can underpin the stock. QuiverQuant notes big Q3-position increases from UBS, BlackRock and others and several recent buy ratings and $44–$51 analyst targets. Verizon Communications Stock (VZ) Opinions on Job Cuts and Earnings Outlook
• Positive Sentiment: High dividend yield and cash-flow profile — Coverage highlights Verizon’s ~7% yield and strong cash flow forecasts, making the stock attractive to income-focused investors, especially if interest rates ease. Here's My Top High-Yield Dividend Stock to Buy in January
• Positive Sentiment: Macro tailwind possibility — A Fed governor publicly pushing for sizable rate cuts this year raises the prospect of lower rates, which tends to benefit high-dividend, low-volatility stocks like Verizon. Fed Governor Wants Huge Rate Cuts This Year: 5 High-Yield Dividend Stocks to Buy Today
• Neutral Sentiment: Growth initiatives under watch — Coverage on Verizon’s Event Perks loyalty efforts and industrial IoT push flags potential incremental revenue/enterprise opportunities; impact depends on execution and scale. Should Verizon’s Event Perks and Industrial IoT Push Require Action From Verizon Communications (VZ) Investors?
• Neutral Sentiment: Mixed value proposition — Analysts and commentators note mixed recent returns but argue the stock may offer value given steady cash flow; view depends on whether investors prioritize yield vs. growth. Is Verizon (VZ) Offering Value After Mixed Returns And Strong Cash Flow Forecasts?
• Negative Sentiment: Job cuts and social-media criticism — Reports of large-scale layoffs (thousands) and online concern about service quality and dividend sustainability create short-term investor uncertainty and reputational risk; restructuring can also trigger near-term charges even if it improves margins later. Verizon Communications Stock (VZ) Opinions on Job Cuts and Earnings Outlook
• Negative Sentiment: Upcoming earnings/Risk of guidance disappointments — Market attention ahead of the Jan 30 report raises the chance of volatility if Verizon’s revenue or guidance misses expectations. Zacks notes the stock recently outpaced the market intraday, but earnings execution remains the primary near-term catalyst. Why Verizon Communications (VZ) Outpaced the Stock Market Today

Analysts Set New Price Targets

VZ has been the subject of a number of recent research reports. BNP Paribas Exane cut Verizon Communications from an "outperform" rating to a "neutral" rating and set a $44.00 price objective for the company. in a research report on Tuesday, October 21st. TD Cowen lowered their price target on shares of Verizon Communications from $56.00 to $51.00 and set a "buy" rating for the company in a report on Thursday, October 30th. Scotiabank upped their price objective on shares of Verizon Communications from $50.50 to $51.00 and gave the company a "sector perform" rating in a research note on Thursday, October 30th. Weiss Ratings lowered shares of Verizon Communications from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, October 24th. Finally, Wall Street Zen downgraded Verizon Communications from a "buy" rating to a "hold" rating in a report on Friday, September 26th. Two investment analysts have rated the stock with a Strong Buy rating, six have given a Buy rating and eleven have assigned a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $47.47.

Verizon Communications Trading Up 1.1%

The company has a quick ratio of 0.69, a current ratio of 0.74 and a debt-to-equity ratio of 1.19. The business's fifty day moving average is $40.53 and its 200-day moving average is $41.90. The stock has a market capitalization of $171.00 billion, a PE ratio of 8.67, a P/E/G ratio of 3.48 and a beta of 0.34.

Verizon Communications (NYSE:VZ - Get Free Report) last posted its quarterly earnings results on Wednesday, October 29th. The cell phone carrier reported $1.21 earnings per share for the quarter, topping analysts' consensus estimates of $1.19 by $0.02. Verizon Communications had a net margin of 14.43% and a return on equity of 19.31%. The company had revenue of $33.82 billion for the quarter, compared to the consensus estimate of $34.19 billion. During the same quarter last year, the firm posted $1.19 earnings per share. Verizon Communications's revenue was up 1.5% on a year-over-year basis. As a group, analysts anticipate that Verizon Communications Inc. will post 4.69 EPS for the current fiscal year.

Verizon Communications Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, February 2nd. Shareholders of record on Monday, January 12th will be given a dividend of $0.69 per share. This represents a $2.76 dividend on an annualized basis and a yield of 6.8%. The ex-dividend date of this dividend is Monday, January 12th. Verizon Communications's payout ratio is 58.97%.

Hedge Funds Weigh In On Verizon Communications

A number of large investors have recently modified their holdings of the company. Bulwark Capital Corp purchased a new position in Verizon Communications in the second quarter valued at approximately $25,000. Advantage Trust Co increased its position in shares of Verizon Communications by 549.5% in the second quarter. Advantage Trust Co now owns 591 shares of the cell phone carrier's stock worth $26,000 after acquiring an additional 500 shares in the last quarter. TruNorth Capital Management LLC increased its position in shares of Verizon Communications by 95.3% in the third quarter. TruNorth Capital Management LLC now owns 625 shares of the cell phone carrier's stock worth $27,000 after acquiring an additional 305 shares in the last quarter. Holos Integrated Wealth LLC purchased a new position in shares of Verizon Communications in the 4th quarter valued at $28,000. Finally, Foster Dykema Cabot & Partners LLC acquired a new position in shares of Verizon Communications during the 3rd quarter valued at $29,000. 62.06% of the stock is currently owned by hedge funds and other institutional investors.

About Verizon Communications

Verizon Communications Inc NYSE: VZ is a major U.S.-based telecommunications company that provides a broad range of communications and information services. Its operations span consumer and business markets, with core offerings that include wireless voice and data services, fixed-line broadband and fiber-optic services, and enterprise networking solutions. Verizon is headquartered in New York City and operates a nationwide wireless network that supports consumer subscribers as well as business and government customers.

The company's consumer products include mobile phone plans, unlimited data services, and Fios, its branded fiber-optic internet, television and voice service for homes and small businesses.

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