Verizon Communications (NYSE:VZ) Shares Down 5.1% - Here's What Happened

Key Points

• Verizon shares fell 5.1% on Monday, dropping to an intraday low of $42.78 before last trading at $44.15, well below the prior close of $46.54.
• The biggest company-specific development was a 50:50 joint venture with BT Group to combine their international enterprise operations, a move aimed at improving scale and competitiveness while potentially streamlining Verizon’s overseas business.
• Investors are also weighing near-term earnings pressure and stronger competition, including reports of an estimated Q2 loss and growing concerns about SpaceX/Starlink and cable rivals entering the wireless market.

Verizon Communications Inc. (NYSE:VZ - Get Free Report)'s share price dropped 5.1% during trading on Monday . The company traded as low as $42.78 and last traded at $44.15. 53,787,628 shares were traded during mid-day trading, an increase of 89% from the average session volume of 28,510,256 shares. The stock had previously closed at $46.54.

Verizon Communications News Summary

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

• Positive Sentiment: Verizon and BT Group agreed to form a 50:50 joint venture combining their international enterprise operations, which could improve scale and competitiveness in serving multinational customers. Reuters article: BT, Verizon announce joint venture for international enterprise units
• Positive Sentiment: The BT deal could help Verizon streamline its overseas business and focus more on core wireless and domestic telecom operations over time. Globe Newswire article: BT Group and Verizon to form joint venture
• Neutral Sentiment: Broad market and index-related headlines are adding noise to trading, including Verizon’s removal from the Dow and a wider rotation into other large-cap stocks. Article: Dow Jones S&P Indices replaces Verizon with Alphabet
• Negative Sentiment: Verizon reportedly reclassified assets and expects an estimated Q2 loss, which signals near-term earnings pressure and raises concern about one-time charges hitting profitability. Seeking Alpha article: Verizon reclassifies assets, expects estimated Q2 loss
• Negative Sentiment: Investors are also worried about rising competition from SpaceX/Starlink and cable rivals, which could threaten Verizon’s wireless growth and pricing power. Yahoo Finance article: Verizon falls 7%, AT&T hits 52-week low as SpaceX and cable rivals converge
• Negative Sentiment: Reports that SpaceX may enter the mobile phone market are pressuring Verizon and other major carriers, reinforcing fears of tougher competition ahead. Barron's article: SpaceX Might Bring Mobile Phone to Market

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on the company. Raymond James Financial reiterated an "outperform" rating and set a $56.00 target price on shares of Verizon Communications in a research report on Thursday, March 12th. Freedom Capital upgraded shares of Verizon Communications to a "hold" rating in a research report on Friday, June 12th. Wells Fargo & Company boosted their price objective on Verizon Communications from $44.00 to $46.00 and gave the stock an "equal weight" rating in a research note on Tuesday, April 28th. JPMorgan Chase & Co. upped their target price on Verizon Communications from $49.00 to $52.00 and gave the company a "neutral" rating in a report on Thursday, April 30th. Finally, Scotiabank raised Verizon Communications from a "sector perform" rating to a "sector outperform" rating and raised their target price for the stock from $50.25 to $54.50 in a research note on Monday, March 9th. One investment analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and twelve have given a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $50.59.

Verizon Communications Stock Performance

The company has a current ratio of 0.64, a quick ratio of 0.61 and a debt-to-equity ratio of 1.38. The stock has a market capitalization of $184.35 billion, a price-to-earnings ratio of 10.77, a price-to-earnings-growth ratio of 1.13 and a beta of 0.24. The firm's fifty day moving average price is $46.93 and its 200 day moving average price is $45.86.

Verizon Communications (NYSE:VZ - Get Free Report) last announced its earnings results on Monday, April 27th. The cell phone carrier reported $1.28 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.21 by $0.07. Verizon Communications had a return on equity of 19.25% and a net margin of 12.46%.The company had revenue of $34.44 billion for the quarter, compared to analyst estimates of $34.82 billion. During the same quarter in the previous year, the company earned $1.19 earnings per share. The firm's quarterly revenue was up 2.7% compared to the same quarter last year. Verizon Communications has set its FY 2026 guidance at 4.950-4.990 EPS. Analysts forecast that Verizon Communications Inc. will post 4.98 EPS for the current fiscal year.

Verizon Communications Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, August 3rd. Shareholders of record on Friday, July 10th will be given a $0.7075 dividend. This represents a $2.83 annualized dividend and a yield of 6.4%. The ex-dividend date of this dividend is Friday, July 10th. Verizon Communications's payout ratio is currently 69.02%.

Institutional Trading of Verizon Communications

Hedge funds have recently made changes to their positions in the business. Brighton Jones LLC raised its holdings in Verizon Communications by 61.2% in the fourth quarter. Brighton Jones LLC now owns 43,986 shares of the cell phone carrier's stock valued at $1,759,000 after acquiring an additional 16,704 shares in the last quarter. United Bank grew its holdings in Verizon Communications by 11.5% during the 2nd quarter. United Bank now owns 7,843 shares of the cell phone carrier's stock worth $339,000 after acquiring an additional 806 shares in the last quarter. Jump Financial LLC increased its position in shares of Verizon Communications by 312.0% in the 2nd quarter. Jump Financial LLC now owns 23,639 shares of the cell phone carrier's stock valued at $1,023,000 after purchasing an additional 17,901 shares during the last quarter. HUB Investment Partners LLC raised its position in shares of Verizon Communications by 17.2% during the 2nd quarter. HUB Investment Partners LLC now owns 41,121 shares of the cell phone carrier's stock worth $1,779,000 after acquiring an additional 6,034 shares in the last quarter. Finally, Vivaldi Capital Management LP boosted its holdings in shares of Verizon Communications by 5.2% in the 2nd quarter. Vivaldi Capital Management LP now owns 8,993 shares of the cell phone carrier's stock valued at $389,000 after buying an additional 443 shares in the last quarter. 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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