Verizon Communications (NYSE:VZ) Shares Down 2.2% - Time to Sell?

Key Points

• Verizon shares fell 2.2% on Wednesday, trading as low as $45.43 after closing at $46.73 the prior day, with volume below its average session level.
• The company is working to win back subscribers by rolling out simpler, lower-cost wireless plans like Simplicity and Verizon One, aimed at reducing churn and improving retention.
• Sentiment is being pressured by Verizon’s removal from the Dow Jones Industrial Average on June 29, when Alphabet will replace it, reinforcing concerns about the stock’s diminished market influence.

Verizon Communications Inc. (NYSE:VZ - Get Free Report) fell 2.2% during trading on Wednesday . The stock traded as low as $45.43 and last traded at $45.70. 25,082,372 shares traded hands during trading, a decline of 12% from the average session volume of 28,361,848 shares. The stock had previously closed at $46.73.

Key Verizon Communications News

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

• Positive Sentiment: Verizon is rolling out new wireless offerings, including the Simplicity plan and Verizon One, to address subscriber losses and improve customer retention by emphasizing simpler, lower-cost pricing. Verizon (VZ) Launches Simplicity And Verizon One Plans To Win Back Subscribers
• Neutral Sentiment: Verizon’s prior earnings results were mixed: earnings per share beat expectations, but revenue came in slightly below estimates, suggesting stable profitability but limited top-line momentum.
• Neutral Sentiment: Some commentary highlights Verizon as a defensive dividend stock that has benefited from rotation out of higher-volatility tech names, which can provide support during choppy markets. Why Johnson & Johnson, Altria, Verizon, and Other Safe Dividend Stocks Climbed Today
• Negative Sentiment: Verizon will exit the Dow on June 29, with Alphabet taking its place, which may weigh on sentiment because the company is being removed from a major blue-chip benchmark. Alphabet added to Dow Jones Industrial Average, replacing Verizon
• Negative Sentiment: The index change reflects concern that Verizon’s low share price gives it an “immaterial impact” in the Dow, reinforcing the view that the stock’s weighting and market influence have diminished. Dow Jones reshuffle: Alphabet to join, replacing Verizon
• Negative Sentiment: Recent reports also point to Verizon facing a fresh market test after a rating update, adding to investor caution around the stock. Verizon NYSE: VZ Faces A Fresh Market Test After Rating Update

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on VZ. Morgan Stanley raised their price objective on shares of Verizon Communications from $49.00 to $50.00 and gave the company an "equal weight" rating in a report on Tuesday, April 28th. Barclays boosted their target price on shares of Verizon Communications from $43.00 to $47.00 and gave the stock an "equal weight" rating in a research note on Tuesday, March 31st. Wells Fargo & Company raised their price target on Verizon Communications from $44.00 to $46.00 and gave the company an "equal weight" rating in a research note on Tuesday, April 28th. Scotiabank raised Verizon Communications from a "sector perform" rating to a "sector outperform" rating and lifted their price target for the stock from $50.25 to $54.50 in a report on Monday, March 9th. Finally, JPMorgan Chase & Co. lifted their price target on Verizon Communications from $49.00 to $52.00 and gave the stock a "neutral" rating in a report on Thursday, April 30th. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and twelve have assigned a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $50.59.

Verizon Communications Stock Down 2.2%

The firm has a market cap of $190.82 billion, a PE ratio of 11.15, a P/E/G ratio of 1.11 and a beta of 0.24. The company has a debt-to-equity ratio of 1.38, a quick ratio of 0.61 and a current ratio of 0.64. The firm's 50-day moving average price is $46.89 and its two-hundred day moving average price is $45.77.

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

Verizon Communications Announces Dividend

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

Institutional Trading of Verizon Communications

Several institutional investors and hedge funds have recently made changes to their positions in VZ. Ballast Advisors LLC purchased a new position in shares of Verizon Communications during the first quarter worth approximately $65,000. MTM Financial Group LLC acquired a new position in shares of Verizon Communications in the 1st quarter valued at $235,000. Sapient Capital LLC raised its position in Verizon Communications by 29.2% in the 1st quarter. Sapient Capital LLC now owns 18,584 shares of the cell phone carrier's stock valued at $933,000 after purchasing an additional 4,198 shares during the last quarter. Southern Financial Group LLC raised its position in Verizon Communications by 2.1% in the 1st quarter. Southern Financial Group LLC now owns 19,321 shares of the cell phone carrier's stock valued at $970,000 after purchasing an additional 405 shares during the last quarter. Finally, S&A Financial Services Inc. acquired a new stake in Verizon Communications during the 1st quarter worth $379,000. 62.06% of the stock is owned by hedge funds and other institutional investors.

Verizon Communications Company Profile

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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