Verizon Communications (NYSE:VZ) Shares Up 1.2% - Still a Buy?

Key Points

• Verizon shares rose 1.2% on Tuesday, trading above the prior close, though the stock is still roughly below its 50-day and 200-day moving averages, signaling mixed near-term momentum.
• The company continues to appeal to income investors thanks to its 6.6% dividend yield and long dividend growth history, while recent earnings also showed EPS beating expectations even as revenue came in slightly light.
• Analysts remain cautiously constructive: Verizon has a Moderate Buy consensus and an average target price of about $50.59, supported by positive themes like new spectrum wins and the BT joint venture, but weighed by the stock’s recent underperformance versus the broader telecom sector.

Shares of Verizon Communications Inc. (NYSE:VZ - Get Free Report) were up 1.2% on Tuesday . The stock traded as high as $43.50 and last traded at $42.58. 34,348,956 shares traded hands during mid-day trading, an increase of 16% from the average session volume of 29,520,902 shares. The stock had previously closed at $42.07.

Verizon Communications News Summary

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

• Positive Sentiment: Verizon remains attractive to income-focused investors, with recent coverage highlighting its high dividend yield and long track record of dividend growth. 2 Monster Dividend Stocks to Buy Now and Hold Forever
• Positive Sentiment: Analysts said the telecom sector may be better positioned than cable operators as Starlink expands, and one analyst also said the near-term risk from SpaceX to telecoms “feels overdone,” which is supportive for wireless names like Verizon. Wireless Better Positioned Than Cable as Starlink Expands, Morgan Stanley Says SpaceX Risk to Telecom Sector ‘Feels Overdone,’ for Now, Analyst Says
• Positive Sentiment: Verizon recently won nearly $3.2 billion in FCC mid-band spectrum licenses, and it also announced a joint venture with BT Group to combine international enterprise operations, both of which could strengthen its longer-term growth outlook. Is Verizon Communications Inc. (VZ) The Best Dividend Stock to Buy According to Hedge Funds? Is Verizon Communications (VZ) Below Fair Value As The BT Joint Venture Raises Fresh Questions?
• Neutral Sentiment: Recent articles continue to frame Verizon as a defensive, income-oriented stock, but they do not point to a major near-term catalyst that would clearly re-rate the shares. Verizon Stock Underperforms Industry in a Year: Buy, Sell or Hold?
• Negative Sentiment: Verizon has lagged both the broader sector and the wireless industry over the past year, and recent coverage notes that its share price has eased over the past 30 and 90 days, which keeps sentiment cautious. Verizon Stock Underperforms Industry in a Year: Buy, Sell or Hold? Is Verizon Communications (VZ) Below Fair Value As The BT Joint Venture Raises Fresh Questions?
• Negative Sentiment: Verizon’s latest trading-session weakness, along with broader tech/AI market selling tied to Samsung earnings, may have added a small risk-off tone to telecom shares. Verizon Communications (VZ) Stock Falls Amid Market Uptick: What Investors Need to Know Nasdaq down as chip stocks sell off after Samsung earnings

Analyst Upgrades and Downgrades

VZ has been the topic of a number of research analyst reports. Barclays boosted their price target on shares of Verizon Communications from $43.00 to $47.00 and gave the stock an "equal weight" rating in a report on Tuesday, March 31st. Scotiabank raised shares of 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. Oppenheimer increased their price objective on Verizon Communications from $50.00 to $56.00 and gave the company an "outperform" rating in a report on Wednesday, March 11th. Erste Group Bank reissued a "hold" rating on shares of Verizon Communications in a research report on Tuesday, May 5th. Finally, Weiss Ratings restated a "buy (b)" rating on shares of Verizon Communications in a research note on Friday, May 29th. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and twelve have issued a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $50.59.

Verizon Communications Stock Performance

The company's 50-day moving average is $46.56 and its two-hundred day moving average is $45.95. The company has a market capitalization of $177.80 billion, a P/E ratio of 10.39, a PEG ratio of 1.04 and a beta of 0.26. The company has a quick ratio of 0.61, a current ratio of 0.64 and a debt-to-equity ratio of 1.38.

Verizon Communications (NYSE:VZ - Get Free Report) last released 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. 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 previous year, the company earned $1.19 EPS. The business'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. Equities analysts anticipate that Verizon Communications Inc. will post 4.98 earnings per share for the current fiscal year.

Verizon Communications Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, August 3rd. Investors 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 6.6%. The ex-dividend date of this dividend is Friday, July 10th. Verizon Communications's dividend payout ratio (DPR) is currently 69.02%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Brighton Jones LLC increased its stake in shares of Verizon Communications by 61.2% in the fourth quarter. Brighton Jones LLC now owns 43,986 shares of the cell phone carrier's stock worth $1,759,000 after buying an additional 16,704 shares during the period. United Bank boosted its stake in shares of Verizon Communications by 11.5% during the 2nd quarter. United Bank now owns 7,843 shares of the cell phone carrier's stock valued at $339,000 after purchasing an additional 806 shares in the last quarter. Jump Financial LLC raised its stake in Verizon Communications by 312.0% in the second quarter. Jump Financial LLC now owns 23,639 shares of the cell phone carrier's stock worth $1,023,000 after buying an additional 17,901 shares in the last quarter. HUB Investment Partners LLC lifted its holdings in Verizon Communications by 17.2% in the second quarter. HUB Investment Partners LLC now owns 41,121 shares of the cell phone carrier's stock worth $1,779,000 after buying an additional 6,034 shares during the period. Finally, Vivaldi Capital Management LP boosted its position in Verizon Communications by 5.2% during the 2nd quarter. Vivaldi Capital Management LP now owns 8,993 shares of the cell phone carrier's stock valued at $389,000 after acquiring an additional 443 shares in the last quarter. 62.06% of the stock is currently owned by 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.