Verizon Communications (NYSE:VZ) Shares Up 2.5% - Here's Why

Key Points

• Verizon shares rose 2.5% on Friday, trading as high as $48.21 as investors responded to a generally positive news backdrop and the stock’s defensive appeal.
• Recent commentary has been constructive on Verizon’s valuation, cash flow, and dividend, with analysts and market reports highlighting it as an inexpensive income stock; the company also touts new AI-powered disaster-response tools that may strengthen network resilience.
• Wall Street remains moderately bullish: several firms raised price targets, and the consensus rating is “Moderate Buy” with an average target of $50.59. Verizon also reported earnings that beat EPS estimates and offers a 5.9% dividend yield.

Verizon Communications Inc. (NYSE:VZ - Get Free Report) shares shot up 2.5% during trading on Friday . The company traded as high as $48.21 and last traded at $48.1020. 21,943,356 shares changed hands during trading, a decline of 22% from the average session volume of 28,247,262 shares. The stock had previously closed at $46.94.

Verizon Communications News Summary

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

• Positive Sentiment: Analysts and market commentary remain constructive on Verizon’s valuation, with several notes calling it inexpensive relative to its cash flow, earnings power, and dividend profile. Verizon: Steady, Cheap, And Still Standing
• Positive Sentiment: Verizon highlighted new AI-powered disaster-response tools, including “Digital Twin” network modeling, satellite connectivity, and mobile 5G assets, which could support network resilience and reinforce its infrastructure advantage. Verizon’s AI Disaster Tools Highlight Network Resilience And Valuation Gap
• Positive Sentiment: Investor sentiment has also been helped by upbeat pieces describing Verizon as a defensive stock with income potential, including mentions of its raised guidance, postpaid subscriber momentum, and fiber expansion after the Frontier deal. Verizon: A Unique Opportunity In An Expensive Market
• Neutral Sentiment: An insider sold about 80% of her shares in a roughly $3 million transaction, which can draw attention but does not necessarily signal a change in Verizon’s business outlook. 1 Verizon Insider Sells 80% of Her Stock in $3 Million Deal. For Everyone Else, VZ Is a Good Buy Now.
• Neutral Sentiment: Erste Group slightly trimmed its FY2027 earnings estimate for Verizon, but the change was minimal and the firm kept a Hold rating. Verizon Communications Inc. research note
• Neutral Sentiment: Some recent market updates noted Verizon outperforming a weaker broader market session, reinforcing the stock’s defensive character rather than pointing to a major company-specific catalyst. Verizon Communications (VZ) Rises As Market Takes a Dip: Key Facts

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on VZ. Citigroup upped their price objective on Verizon Communications from $50.00 to $55.00 and gave the company a "buy" rating in a report on Friday, March 20th. Wells Fargo & Company increased 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. Weiss Ratings reissued a "buy (b)" rating on shares of Verizon Communications in a research note on Friday, May 29th. Dbs Bank downgraded Verizon Communications from a "moderate buy" rating to a "hold" rating in a research note on Tuesday, April 7th. Finally, Scotiabank raised Verizon Communications from a "sector perform" rating to a "sector outperform" rating and increased their price objective for the stock from $50.25 to $54.50 in a research note on Monday, March 9th. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and eleven have given a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $50.59.

Verizon Communications Price Performance

The stock has a 50 day moving average price of $47.22 and a two-hundred day moving average price of $45.45. 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 company has a market capitalization of $200.85 billion, a PE ratio of 11.73, a P/E/G ratio of 1.15 and a beta of 0.24.

Verizon Communications (NYSE:VZ - Get Free Report) last issued its quarterly earnings data on Monday, April 27th. The cell phone carrier reported $1.28 earnings per share 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 business had revenue of $34.44 billion for the quarter, compared to the consensus estimate of $34.82 billion. During the same period last year, the business earned $1.19 EPS. The firm's 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 forecast that Verizon Communications Inc. will post 4.97 earnings per share for the current year.

Verizon Communications Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, August 3rd. Shareholders of record on Friday, July 10th will be issued a $0.7075 dividend. The ex-dividend date of this dividend is Friday, July 10th. This represents a $2.83 dividend on an annualized basis and a yield of 5.9%. Verizon Communications's dividend payout ratio (DPR) is 69.02%.

Institutional Trading of Verizon Communications

Several institutional investors have recently modified their holdings of VZ. Strengthening Families & Communities LLC raised its position in Verizon Communications by 490.0% in the 4th quarter. Strengthening Families & Communities LLC now owns 649 shares of the cell phone carrier's stock valued at $26,000 after purchasing an additional 539 shares during the last quarter. Robinswood Financial LLC bought a new position in Verizon Communications in the 1st quarter valued at $27,000. Holos Integrated Wealth LLC bought a new position in Verizon Communications in the 4th quarter valued at $28,000. Lam Group Inc. bought a new position in Verizon Communications in the 1st quarter valued at $28,000. Finally, Foster Dykema Cabot & Partners LLC bought a new position in Verizon Communications in the 3rd quarter valued at $29,000. 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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