Verizon Communications (NYSE:VZ) Shares Down 1.9% - What's Next?

Key Points

• Verizon shares fell 1.9% on Wednesday, trading as low as $45.23 amid heavier volume than usual. The stock still sits near its 200-day moving average and remains below its recent 50-day average.
• Verizon introduced simpler wireless plans and a new loyalty program to boost retention and attract new customers, while also eliminating activation and upgrade fees. The program includes 3% back on bills plus perks from partners like Sephora, Hilton, Marriott, and Starbucks.
• The company reported mixed quarterly results, beating EPS estimates but missing revenue expectations, and maintained FY2026 EPS guidance of 4.950-4.990. Verizon also declared a quarterly dividend of $0.7075 per share, implying a 6.2% yield.

Verizon Communications Inc. (NYSE:VZ - Get Free Report) traded down 1.9% on Wednesday . The company traded as low as $45.23 and last traded at $45.8610. 33,095,564 shares were traded during trading, an increase of 17% from the average session volume of 28,190,027 shares. The stock had previously closed at $46.73.

Verizon Communications News Roundup

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

• Positive Sentiment: Verizon unveiled customer-friendly moves aimed at improving retention and attracting subscribers, including simpler wireless plans, a new loyalty program, and the removal of activation and upgrade fees. The company says the program will offer 3% back on bills plus perks with brands like Sephora, Hilton, Marriott, and Starbucks. Article: Verizon targets wireless customers with new simpler plans, drops some fees
• Neutral Sentiment: Verizon also announced the final results of its private exchange offers and tender offers for multiple series of notes, part of an ongoing effort to manage its debt structure and simplify certain subsidiary obligations. Article: Verizon announces expiration and final results of its private exchange offers and consent solicitations for 11 series of notes
• Neutral Sentiment: The company separately reported final results for tender offers and consent solicitations covering 20 series of Verizon and subsidiary notes, another balance-sheet and refinancing update that is unlikely to move the stock on its own but reinforces capital-management efforts. Article: Verizon announces expiration and final results of its tender offers and consent solicitations for 20 series of Verizon and certain of its subsidiaries' notes

Analyst Ratings Changes

A number of equities analysts recently weighed in on the stock. JPMorgan Chase & Co. lifted their target price on shares of Verizon Communications from $49.00 to $52.00 and gave the stock a "neutral" rating in a research note on Thursday, April 30th. Dbs Bank downgraded shares of Verizon Communications from a "moderate buy" rating to a "hold" rating in a research note on Tuesday, April 7th. Erste Group Bank reissued a "hold" rating on shares of Verizon Communications in a research note on Tuesday, May 5th. Raymond James Financial reissued an "outperform" rating and set a $56.00 target price on shares of Verizon Communications in a research note on Thursday, March 12th. Finally, Freedom Capital raised shares of Verizon Communications to a "hold" rating in a research note on Friday, June 12th. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and twelve have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $50.59.

Verizon Communications Price Performance

The company has a debt-to-equity ratio of 1.38, a current ratio of 0.64 and a quick ratio of 0.61. The firm has a market capitalization of $191.50 billion, a price-to-earnings ratio of 11.19, a PEG ratio of 1.15 and a beta of 0.24. The business's fifty day simple moving average is $47.10 and its 200 day simple moving average is $45.59.

Verizon Communications (NYSE:VZ - Get Free Report) last posted its quarterly earnings results on Monday, April 27th. The cell phone carrier reported $1.28 EPS for the quarter, topping analysts' consensus estimates of $1.21 by $0.07. The business had revenue of $34.44 billion during the quarter, compared to analysts' expectations of $34.82 billion. Verizon Communications had a net margin of 12.46% and a return on equity of 19.25%. The business's quarterly revenue was up 2.7% on a year-over-year basis. During the same period last year, the company posted $1.19 earnings per share. Verizon Communications has set its FY 2026 guidance at 4.950-4.990 EPS. On average, research analysts forecast that Verizon Communications Inc. will post 4.97 EPS for the current year.

Verizon Communications Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, August 3rd. Stockholders of record on Friday, July 10th will be issued a dividend of $0.7075 per share. This represents a $2.83 dividend on an annualized basis and a dividend yield of 6.2%. The ex-dividend date is Friday, July 10th. Verizon Communications's dividend payout ratio (DPR) is currently 69.02%.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in VZ. Norges Bank bought a new stake in Verizon Communications during the 4th quarter worth approximately $2,357,158,000. Bank of America Corp DE grew its stake in Verizon Communications by 15.4% in the 1st 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 buying an additional 8,289,877 shares in the last quarter. Bank of New York Mellon Corp grew its stake in Verizon Communications by 31.2% in the 4th quarter. Bank of New York Mellon Corp now owns 31,584,162 shares of the cell phone carrier's stock worth $1,286,423,000 after buying an additional 7,509,055 shares in the last quarter. State Street Corp grew its stake in Verizon Communications by 3.5% in the 4th quarter. State Street Corp now owns 222,951,399 shares of the cell phone carrier's stock worth $9,080,810,000 after buying an additional 7,461,335 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. grew its stake in Verizon Communications by 5.3% in the 4th 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 buying an additional 5,851,715 shares in the last quarter. 62.06% of the stock is currently owned by institutional investors and hedge funds.

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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