Verizon Communications (NYSE:VZ) Shares Up 2.4% - Still a Buy?

Key Points

• Verizon shares rose 2.4% on Thursday, trading as high as $44.22 after closing at $42.83 the prior day. Trading volume was below average, suggesting the move came with relatively lighter activity.
• Analyst sentiment remains mixed, with Verizon holding a consensus “Hold” rating and an average price target of $50.09. Some firms raised earnings estimates and price targets, while others trimmed targets but still stayed constructive.
• The company continues to support investors with a 6.5% dividend yield and also posted solid quarterly earnings, beating EPS estimates even as revenue came in slightly below expectations. However, concerns remain around planned job cuts, store sales, and wireless competition.

Verizon Communications Inc. (NYSE:VZ - Get Free Report)'s share price was up 2.4% during trading on Thursday . The company traded as high as $44.22 and last traded at $43.8450. Approximately 25,051,891 shares changed hands during mid-day trading, a decline of 14% from the average daily volume of 29,279,162 shares. The stock had previously closed at $42.83.

Key Stories Impacting Verizon Communications

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

• Positive Sentiment: KeyCorp raised its earnings estimates for Verizon for multiple future periods, including FY2027, suggesting analysts see improving profitability and a stronger earnings outlook.
• Positive Sentiment: Verizon’s partnership with BMW and KDDI on U.S. connected car services could support future revenue growth through 5G and IoT connectivity.
• Positive Sentiment: Verizon’s expanding broadband efforts may help diversify growth beyond wireless subscriptions.
• Neutral Sentiment: JD Power said wireless network quality returned to record highs, which supports the broader industry backdrop but does not directly change Verizon’s near-term fundamentals.
• Neutral Sentiment: Scotiabank lowered its price target on Verizon to $51.50 from $54.50, but kept a sector outperform rating, indicating continued confidence despite a more cautious valuation view.
• Negative Sentiment: Verizon’s plan to cut about 3,000 jobs and sell 274 stores may pressure the stock near term because investors often worry about transition costs, morale, and the impact on sales.
• Negative Sentiment: Analyst commentary and recent reports about competition from SpaceX/Starlink have also contributed to concerns about pressure in the wireless market.

Analysts Set New Price Targets

VZ has been the topic of several recent analyst reports. BNP Paribas Exane cut their target price on shares of Verizon Communications from $46.00 to $44.00 and set a "neutral" rating on the stock in a research note on Tuesday. Wells Fargo & Company initiated coverage on Verizon Communications in a research report on Wednesday, July 8th. They issued an "equal weight" rating and a $43.00 target price for the company. Freedom Capital raised Verizon Communications to a "hold" rating in a research report on Friday, June 12th. JPMorgan Chase & Co. increased their price objective on Verizon Communications from $49.00 to $52.00 and gave the stock a "neutral" rating in a research note on Thursday, April 30th. Finally, Weiss Ratings restated a "buy (b)" rating on shares of Verizon Communications in a research report on Friday, May 29th. Nine research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $50.09.

Verizon Communications Trading Up 2.4%

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 stock has a market cap of $183.08 billion, a price-to-earnings ratio of 10.69, a price-to-earnings-growth ratio of 1.03 and a beta of 0.26. The company's 50 day simple moving average is $45.81 and its two-hundred day simple moving average is $46.07.

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 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 company had revenue of $34.44 billion during the quarter, compared to analyst estimates of $34.82 billion. During the same quarter last 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. Research analysts expect that Verizon Communications Inc. will post 4.98 EPS for the current fiscal year.

Verizon Communications Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, August 3rd. Stockholders of record on Friday, July 10th will be paid a dividend of $0.7075 per share. The ex-dividend date of this dividend is Friday, July 10th. This represents a $2.83 dividend on an annualized basis and a dividend yield of 6.5%. Verizon Communications's dividend payout ratio (DPR) is 69.02%.

Institutional Investors Weigh In On Verizon Communications

Several large investors have recently made changes to their positions in VZ. Vanguard Group Inc. raised its holdings in shares of Verizon Communications by 1.5% during the 4th 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 in the last quarter. State Street Corp boosted its holdings in 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 purchasing an additional 7,461,335 shares in the last quarter. Charles Schwab Investment Management Inc. increased its position in Verizon Communications by 5.3% during 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 buying an additional 5,851,715 shares during the last quarter. Geode Capital Management LLC increased its position in Verizon Communications by 0.9% during the fourth quarter. Geode Capital Management LLC now owns 102,632,509 shares of the cell phone carrier's stock worth $4,168,080,000 after buying an additional 867,694 shares during the last quarter. Finally, Bank of America Corp DE raised its holdings in Verizon Communications by 15.4% during the first quarter. Bank of America Corp DE now owns 62,101,021 shares of the cell phone carrier's stock valued at $3,117,471,000 after buying an additional 8,289,877 shares in the last quarter. Institutional investors own 62.06% of the company's stock.

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.