Verizon Communications (NYSE:VZ) Shares Down 1.4% - Should You Sell?

Key Points

• Shares fell about 1.4% to $50.41, while analysts' consensus is a "Moderate Buy" with a consensus price target of $49.28, below the current share price.
• Verizon slightly beat quarterly estimates with $1.09 EPS (vs. $1.06 expected) and $36.38B revenue, and set FY2026 guidance of 4.900–4.950 EPS.
• The company raised its quarterly dividend to $0.7075 (annualized $2.83), implying a ~5.6% yield with a payout ratio around 68%.

Verizon Communications Inc. (NYSE:VZ - Get Free Report) shares fell 1.4% during trading on Monday . The company traded as low as $50.36 and last traded at $50.4060. 28,986,316 shares traded hands during trading, a decline of 14% from the average session volume of 33,808,539 shares. The stock had previously closed at $51.12.

Analysts Set New Price Targets

Several research analysts have recently weighed in on the stock. Barclays initiated coverage on shares of Verizon Communications in a report on Thursday, January 22nd. They issued an "equal weight" rating and a $43.00 price target on the stock. Wells Fargo & Company boosted their target price on Verizon Communications from $41.00 to $44.00 and gave the stock an "equal weight" rating in a research report on Monday, February 2nd. Royal Bank Of Canada upped their target price on Verizon Communications from $44.00 to $48.00 and gave the stock a "sector perform" rating in a research note on Tuesday, February 3rd. JPMorgan Chase & Co. raised their price target on Verizon Communications from $47.00 to $49.00 and gave the company a "neutral" rating in a report on Tuesday, February 3rd. Finally, Sanford C. Bernstein reiterated a "market perform" rating and set a $48.00 price target on shares of Verizon Communications in a research report on Monday, February 2nd. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and ten have given a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $49.28.

Verizon Communications Stock Performance

The company has a 50 day simple moving average of $44.40 and a 200-day simple moving average of $42.59. The company has a debt-to-equity ratio of 1.32, a current ratio of 0.91 and a quick ratio of 0.87. The stock has a market cap of $212.60 billion, a P/E ratio of 12.45, a price-to-earnings-growth ratio of 2.14 and a beta of 0.30.

Verizon Communications (NYSE:VZ - Get Free Report) last announced its quarterly earnings data on Friday, January 30th. The cell phone carrier reported $1.09 earnings per share for the quarter, beating analysts' consensus estimates of $1.06 by $0.03. The company had revenue of $36.38 billion for the quarter, compared to analysts' expectations of $36.20 billion. Verizon Communications had a return on equity of 19.03% and a net margin of 12.43%.Verizon Communications's revenue for the quarter was up 2.0% compared to the same quarter last year. During the same period last year, the firm posted $1.10 EPS. Verizon Communications has set its FY 2026 guidance at 4.900-4.950 EPS. On average, equities analysts expect that Verizon Communications Inc. will post 4.69 earnings per share for the current fiscal year.

Verizon Communications Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, May 1st. Stockholders of record on Friday, April 10th will be issued a $0.7075 dividend. This is an increase from Verizon Communications's previous quarterly dividend of $0.69. This represents a $2.83 annualized dividend and a dividend yield of 5.6%. The ex-dividend date is Friday, April 10th. Verizon Communications's dividend payout ratio (DPR) is presently 68.15%.

Insider Activity at Verizon Communications

In related news, EVP Joseph J. Russo sold 9,579 shares of Verizon Communications stock in a transaction that occurred on Monday, February 2nd. The stock was sold at an average price of $44.88, for a total transaction of $429,905.52. Following the sale, the executive vice president directly owned 44,045 shares in the company, valued at $1,976,739.60. The trade was a 17.86% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, SVP Mary-Lee Stillwell sold 8,569 shares of the company's stock in a transaction on Monday, March 2nd. The stock was sold at an average price of $50.00, for a total value of $428,450.00. Following the completion of the sale, the senior vice president directly owned 43,782 shares in the company, valued at approximately $2,189,100. The trade was a 16.37% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 218,148 shares of company stock worth $10,780,356 in the last ninety days. 0.10% of the stock is owned by company insiders.

Institutional Trading of Verizon Communications

Hedge funds and other institutional investors have recently modified their holdings of the business. Norges Bank purchased a new stake in Verizon Communications in the fourth quarter worth about $2,357,158,000. Bank of New York Mellon Corp lifted its holdings in shares of Verizon Communications by 31.2% during 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 purchasing an additional 7,509,055 shares during the last quarter. State Street Corp grew 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 worth $9,080,810,000 after acquiring an additional 7,461,335 shares during the period. Charles Schwab Investment Management Inc. grew 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 worth $4,747,930,000 after acquiring an additional 5,851,715 shares during the period. Finally, Vanguard Group Inc. raised its holdings in shares of Verizon Communications by 1.5% during 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 purchasing an additional 5,497,598 shares during the last quarter. 62.06% of the stock is 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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