Verizon Communications (NYSE:VZ) Stock Price Down 2.3% - Here's What Happened

Key Points

• Verizon shares fell 2.3% to about $46.12 amid concerns that SpaceX could enter the wireless market with direct-to-mobile coverage, potentially pressuring pricing, subscriber growth, and industry returns.
• Verizon’s latest quarter beat EPS expectations at $1.30 versus $1.27, but revenue declined 0.7% year over year to $34.25 billion and missed estimates.
• The company maintains a strong income appeal with a quarterly dividend of $0.7075, equivalent to a roughly 6.1% annual yield; analysts’ average rating remains “Hold,” with a consensus price target of $50.84.

Verizon Communications Inc. (NYSE:VZ - Get Free Report)'s stock price fell 2.3% on Thursday . The company traded as low as $45.73 and last traded at $46.1230. 20,570,313 shares changed hands during mid-day trading, a decline of 30% from the average daily volume of 29,242,318 shares. The stock had previously closed at $47.22.

More Verizon Communications News

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

• Positive Sentiment: An analyst upgrade provided near-term support, with Verizon shares previously rising after the rating change. Verizon Communications Shares Up Following Analyst Upgrade
• Positive Sentiment: Several firms raised their price targets, including Morgan Stanley to $52, TD Cowen to $56, and Scotiabank to $52.50, signaling additional potential upside. Morgan Stanley Increases Verizon Price Target
• Positive Sentiment: Verizon’s investment case is being reinforced by its roughly 6% dividend yield, resilient cash flow, subscriber gains, and AI-related infrastructure opportunities, including fiber and data-center connectivity. Verizon AI-Driven Growth Story
• Positive Sentiment: A $1.5 billion investment in Eaton Fiber is expected to accelerate nationwide fiber deployment and support Verizon’s broadband expansion. Bain Capital and Tillman Global Holdings Fiber Investment
• Neutral Sentiment: Analysts continue to view Verizon as inexpensive relative to peers, but investors remain divided over whether the low valuation represents an opportunity or reflects weak revenue growth. Recent earnings beat EPS expectations, although revenue declined year over year and missed estimates. Verizon After Earnings: Cheap Stock or Value Trap
• Negative Sentiment: Verizon and other major wireless carriers sold off after reports that SpaceX is seeking spectrum or acquisitions to build dense, direct-to-mobile coverage in U.S. cities. Investors fear a powerful new competitor could pressure pricing, subscriber growth, and long-term industry returns. AT&T and Verizon Face SpaceX Mobile Threat

Analyst Ratings Changes

VZ has been the subject of several recent analyst reports. Royal Bank Of Canada upped their target price on shares of Verizon Communications from $46.00 to $47.00 and gave the company a "sector perform" rating in a research note on Monday. Moffett Nathanson reduced their price target on shares of Verizon Communications from $56.00 to $49.00 and set a "neutral" rating on the stock in a research report on Monday, July 20th. Wells Fargo & Company boosted their price target on shares of Verizon Communications from $43.00 to $47.00 and gave the company an "equal weight" rating in a report on Monday. BNP Paribas Exane lowered their price objective on shares of Verizon Communications from $46.00 to $44.00 and set a "neutral" rating for the company in a research report on Tuesday, July 14th. Finally, JPMorgan Chase & Co. raised 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. Nine research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and an average target price of $50.84.

Verizon Communications Trading Down 2.3%

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 business's fifty day moving average is $45.39 and its 200 day moving average is $46.40. The firm has a market capitalization of $192.59 billion, a price-to-earnings ratio of 12.01, a price-to-earnings-growth ratio of 1.34 and a beta of 0.26.

Verizon Communications (NYSE:VZ - Get Free Report) last announced its earnings results on Friday, July 24th. The cell phone carrier reported $1.30 earnings per share for the quarter, topping analysts' consensus estimates of $1.27 by $0.03. Verizon Communications had a net margin of 11.64% and a return on equity of 19.48%. The firm had revenue of $34.25 billion during the quarter, compared to analyst estimates of $35.16 billion. During the same period in the prior year, the business earned $1.22 EPS. The company's revenue for the quarter was down .7% compared to the same quarter last year. Verizon Communications has set its FY 2026 guidance at 4.990-5.040 EPS. Equities analysts predict that Verizon Communications Inc. will post 5.03 earnings per share for the current year.

Verizon Communications Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, August 3rd. Investors of record on Friday, July 10th will be given a $0.7075 dividend. This represents a $2.83 dividend on an annualized basis and a yield of 6.1%. The ex-dividend date of this dividend is Friday, July 10th. Verizon Communications's dividend payout ratio (DPR) is currently 73.70%.

Hedge Funds Weigh In On Verizon Communications

Large investors have recently bought and sold shares of the company. Econ Financial Services Corp lifted its position in shares of Verizon Communications by 23.5% in the fourth quarter. Econ Financial Services Corp now owns 78,172 shares of the cell phone carrier's stock valued at $3,184,000 after buying an additional 14,862 shares during the last quarter. USS Investment Management Ltd boosted its stake in shares of Verizon Communications by 4.6% during the 1st quarter. USS Investment Management Ltd now owns 713,156 shares of the cell phone carrier's stock worth $35,790,000 after acquiring an additional 31,354 shares during the period. Teacher Retirement System of Texas increased its holdings in shares of Verizon Communications by 41.0% during the 4th quarter. Teacher Retirement System of Texas now owns 2,197,366 shares of the cell phone carrier's stock worth $89,499,000 after acquiring an additional 639,380 shares during the last quarter. Clarity Financial LLC increased its holdings in shares of Verizon Communications by 697.0% during the 4th quarter. Clarity Financial LLC now owns 471,127 shares of the cell phone carrier's stock worth $19,189,000 after acquiring an additional 412,018 shares during the last quarter. Finally, Cibc World Market Inc. raised its stake in Verizon Communications by 15.3% in the 4th quarter. Cibc World Market Inc. now owns 2,382,975 shares of the cell phone carrier's stock valued at $97,059,000 after acquiring an additional 316,854 shares during the period. Institutional investors and hedge funds 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.

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