Verizon Communications (NYSE:VZ) Stock Price Down 2% - Here's Why

Key Points

• Verizon shares fell 2% to about $47.21 in heavy midday trading, despite quarterly EPS of $1.30 beating expectations and the company raising its 2026 outlook.
• Revenue declined 0.7% year over year and missed estimates, while analysts continue to cite wireless competition, execution challenges, and the cost of fiber and AI investments as risks.
• Verizon remains appealing to income investors with a roughly 6% dividend yield, but Wall Street’s consensus rating is “Hold,” with an average price target of $50.84.

Verizon Communications Inc. (NYSE:VZ - Get Free Report) shares fell 2% during mid-day trading on Wednesday . The stock traded as low as $45.70 and last traded at $47.2060. 41,237,980 shares changed hands during mid-day trading, an increase of 41% from the average daily volume of 29,299,283 shares. The stock had previously closed at $48.19.

Key Headlines Impacting Verizon Communications

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

• Positive Sentiment: Verizon reported quarterly EPS of $1.30, exceeding the $1.27 consensus estimate, while earnings increased year over year. The company also raised its 2026 outlook, supporting renewed confidence in its operating momentum. Verizon After Earnings: Cheap Stock or Value Trap?
• Positive Sentiment: Wireless and broadband subscriber growth, including 1.1 million net subscribers reported for the fourth quarter of 2025, has helped ease concerns about competition and churn. Analysts have cited these trends, along with stronger cash flow and lower promotional intensity, when becoming more constructive on the stock. Verizon Is Still One of My Favourite Dividend Picks
• Positive Sentiment: Several firms raised their price targets, including Morgan Stanley to $52, TD Cowen to $56 and Scotiabank to $52.50. These revisions indicate that Wall Street sees additional upside after Verizon’s earnings update, although ratings remain mixed. TD Cowen Increases Verizon Price Target
• Positive Sentiment: A $1.5 billion investment by Bain Capital and Tillman Global Holdings will fund Eaton Fiber’s acquisition of Ripple Fiber and network expansion, supporting Verizon’s fiber broadband rollout without requiring Verizon to fund the entire investment directly. Verizon has also signed a reported $1 billion agreement with Google, adding to its longer-term connectivity and AI growth narrative. Bain Capital and Tillman Global Holdings Fiber Investment
• Neutral Sentiment: Verizon remains attractive to income investors because of its roughly 6% dividend yield, low forward earnings multiple relative to peers and substantial free-cash-flow coverage. The stock’s approximately 76% three-year total return, however, means investors are reassessing how much further value remains.
• Negative Sentiment: Revenue fell 0.7% year over year and missed expectations, raising the possibility that Verizon’s low valuation reflects slow top-line growth rather than an opportunity. Analysts also continue to flag wireless competition, execution risk and the cost of expanding fiber and AI-related services.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on VZ shares. BNP Paribas Exane reduced their price objective on Verizon Communications from $46.00 to $44.00 and set a "neutral" rating on the stock in a research note on Tuesday, July 14th. Erste Group Bank reissued a "hold" rating on shares of Verizon Communications in a report on Tuesday, May 5th. Weiss Ratings reiterated a "buy (b)" rating on shares of Verizon Communications in a research report on Friday, May 29th. Freedom Capital upgraded Verizon Communications to a "hold" rating in a research report on Friday, June 12th. Finally, Wells Fargo & Company upped their price target on Verizon Communications from $43.00 to $47.00 and gave the company an "equal weight" rating in a report on Monday. Nine equities research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $50.84.

Verizon Communications Stock Performance

The firm's 50-day moving average is $45.40 and its two-hundred day moving average is $46.35. The company has a quick ratio of 0.57, a current ratio of 0.60 and a debt-to-equity ratio of 1.36. The stock has a market cap of $197.11 billion, a P/E ratio of 12.29, a price-to-earnings-growth ratio of 1.14 and a beta of 0.26.

Verizon Communications (NYSE:VZ - Get Free Report) last released its quarterly earnings results on Friday, July 24th. The cell phone carrier reported $1.30 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.27 by $0.03. Verizon Communications had a return on equity of 19.48% and a net margin of 11.64%.The company had revenue of $34.25 billion during the quarter, compared to the consensus estimate of $35.16 billion. During the same quarter in the prior year, the company posted $1.22 EPS. The firm's revenue was down .7% on a year-over-year basis. Verizon Communications has set its FY 2026 guidance at 4.990-5.040 EPS. As a group, research analysts expect that Verizon Communications Inc. will post 5.04 EPS for the current year.

Verizon Communications Announces Dividend

The firm also recently declared 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 6.0%. The ex-dividend date of this dividend is Friday, July 10th. Verizon Communications's payout ratio is currently 73.70%.

Institutional Investors Weigh In On Verizon Communications

Several hedge funds have recently made changes to their positions in VZ. Strengthening Families & Communities LLC grew its holdings in shares of Verizon Communications by 490.0% in the 4th quarter. Strengthening Families & Communities LLC now owns 649 shares of the cell phone carrier's stock worth $26,000 after purchasing an additional 539 shares during the last quarter. Robinswood Financial LLC bought a new position in Verizon Communications during the first quarter worth about $27,000. Lam Group Inc. acquired a new position in shares of Verizon Communications in the 1st quarter valued at $28,000. EQ Wealth Advisors LLC acquired a new position in shares of Verizon Communications in the 4th quarter valued at approximately $29,000. Finally, Sarver Vrooman Wealth Advisors lifted its holdings in shares of Verizon Communications by 173.0% in the fourth quarter. Sarver Vrooman Wealth Advisors now owns 707 shares of the cell phone carrier's stock valued at $29,000 after purchasing an additional 448 shares in the last quarter. Institutional investors 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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