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

Key Points

• Shares slipped about 1.3% to roughly $47.98 on Wednesday with ~33.5M shares traded, roughly 6% above average, signaling short-term selling pressure.
• Verizon raised its quarterly dividend to $0.7075 (annualized $2.83) for a ~5.9% yield and remains supportive of income demand via a $25 billion buyback program.
• Analyst sentiment is mixed—consensus is a “Moderate Buy” with an average target of about $50.56 while recent downgrades and three shareholder proposals on governance/climate/ESG add proxy-season uncertainty.

Shares of Verizon Communications Inc. (NYSE:VZ - Get Free Report) traded down 1.3% during trading on Wednesday . The company traded as low as $47.12 and last traded at $47.9830. 33,508,687 shares traded hands during mid-day trading, an increase of 6% from the average session volume of 31,684,529 shares. The stock had previously closed at $48.62.

Verizon Communications News Roundup

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

• Positive Sentiment: Zacks highlights VZ as a top-ranked value stock, reinforcing the idea that the shares look cheap on style/value metrics and may attract income/value investors. Verizon Communications (VZ) is a Top-Ranked Value Stock: Should You Buy?
• Positive Sentiment: BBB National Programs' NAD found Verizon’s pricing disclosures for its “four lines for $25/line” offer adequate, removing an advertising/competitive overhang and reducing legal/PR risk around that promotion. In Fast-Track SWIFT Challenge, National Advertising Division Finds Verizon Wireless Pricing Disclosures Adequate
• Positive Sentiment: Analyst note: Erste Group nudged its FY2027 EPS estimate slightly higher and maintains a Strong-Buy stance, supportive for fundamentals expectations (minor near-term impact but positive signal on earnings trajectory).
• Neutral Sentiment: Dividend narrative remains nuanced versus AT&T — 247WallStreet says the dividend story isn't just headline yields, suggesting investors should weigh payout coverage and growth prospects rather than yield alone. Verizon vs. AT&T: One Telecom Dividend Is on Shaky Ground
• Neutral Sentiment: Macro/sector pieces reiterate Verizon’s defensive dividend and buyback story (large yield, cash flow and a $25B buyback program), which supports longer-term income-focused demand but may not offset short-term sentiment swings.
• Neutral Sentiment: Old asset note: Apollo-backed Yahoo refinancing news is tangential to Verizon (Yahoo was sold by Verizon in 2021) and unlikely to move VZ shares materially. Apollo-backed Yahoo kicks off refinancing talks
• Negative Sentiment: DBS Bank downgraded VZ from Buy to Hold and set a $52 price target, signaling that some analysts view the recent run-up as leaving limited near-term upside — this kind of downgrade can pressure momentum investors. Verizon Cut to Hold at DBS Bank: Is the Telecom Giant Running Out of Upside?
• Negative Sentiment: Three shareholder proposals were filed targeting board structure, climate oversight and use of ESG/DEI metrics in pay; Verizon urged investors to vote against them, but the proposals and proxy advisory attention raise governance and proxy-season uncertainty that can weigh on valuation. Verizon Shareholder Push Raises Questions On Governance Climate Oversight And Valuation

Analyst Upgrades and Downgrades

A number of research analysts recently commented on the company. Sanford C. Bernstein reaffirmed a "market perform" rating and issued a $48.00 price target on shares of Verizon Communications in a research note on Monday, February 2nd. Scotiabank raised Verizon Communications from a "sector perform" rating to a "sector outperform" rating and boosted their price target for the company from $50.25 to $54.50 in a research note on Monday, March 9th. Williams Trading set a $54.00 price target on Verizon Communications in a research note on Monday, February 2nd. Raymond James Financial reaffirmed an "outperform" rating and issued a $56.00 price target on shares of Verizon Communications in a research note on Thursday, March 12th. Finally, Wells Fargo & Company boosted their price target on Verizon Communications from $41.00 to $44.00 and gave the company an "equal weight" rating in a research note on Monday, February 2nd. Two investment analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and nine have given a Hold rating to the company's stock. According to data from MarketBeat.com, Verizon Communications presently has an average rating of "Moderate Buy" and an average target price of $50.56.

Verizon Communications Stock Performance

The company has a quick ratio of 0.87, a current ratio of 0.91 and a debt-to-equity ratio of 1.32. The stock has a market cap of $202.38 billion, a price-to-earnings ratio of 11.85, a P/E/G ratio of 2.07 and a beta of 0.29. The company has a 50 day simple moving average of $48.93 and a 200 day simple moving average of $43.54.

Verizon Communications (NYSE:VZ - Get Free Report) last issued its earnings results on Friday, January 30th. The cell phone carrier reported $1.09 EPS for the quarter, topping the consensus estimate of $1.06 by $0.03. The firm had revenue of $36.38 billion during the quarter, compared to the consensus estimate of $36.20 billion. Verizon Communications had a return on equity of 19.03% and a net margin of 12.43%.The business's quarterly revenue was up 2.0% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.10 earnings per share. Verizon Communications has set its FY 2026 guidance at 4.900-4.950 EPS. As a group, equities research analysts forecast that Verizon Communications Inc. will post 4.69 EPS for the current year.

Verizon Communications Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, May 1st. Shareholders of record on Friday, April 10th will be paid a dividend of $0.7075 per share. The ex-dividend date of this dividend is Friday, April 10th. This is a positive change from Verizon Communications's previous quarterly dividend of $0.69. This represents a $2.83 annualized dividend and a yield of 5.9%. Verizon Communications's payout ratio is presently 69.88%.

Insiders Place Their Bets

In other Verizon Communications news, EVP Joseph J. Russo sold 9,579 shares of the business's stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $44.88, for a total transaction of $429,905.52. Following the completion of the transaction, the executive vice president owned 44,045 shares of the company's stock, valued at approximately $1,976,739.60. The trade was a 17.86% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Hans Erik Vestberg sold 200,000 shares of the business's stock in a transaction dated Tuesday, February 24th. The stock was sold at an average price of $49.61, for a total value of $9,922,000.00. Following the transaction, the director directly owned 145,069 shares of the company's stock, valued at approximately $7,196,873.09. The trade was a 57.96% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 218,148 shares of company stock valued at $10,780,356. 0.10% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in VZ. Norges Bank acquired a new position in shares of Verizon Communications in the fourth quarter valued at approximately $2,357,158,000. Bank of New York Mellon Corp increased its stake in shares of Verizon Communications by 31.2% in the fourth quarter. Bank of New York Mellon Corp now owns 31,584,162 shares of the cell phone carrier's stock valued at $1,286,423,000 after buying an additional 7,509,055 shares during the period. State Street Corp increased its stake in shares of 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 valued at $9,080,810,000 after buying an additional 7,461,335 shares during the period. Charles Schwab Investment Management Inc. increased its stake in shares of Verizon Communications by 5.3% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 116,570,816 shares of the cell phone carrier's stock valued at $4,747,930,000 after buying an additional 5,851,715 shares during the period. Finally, Vanguard Group Inc. increased its stake in shares of Verizon Communications by 1.5% in the fourth quarter. Vanguard Group Inc. now owns 379,402,347 shares of the cell phone carrier's stock valued at $15,453,058,000 after buying an additional 5,497,598 shares during the period. Institutional investors and hedge funds own 62.06% of the company's stock.

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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