Verizon Communications (NYSE:VZ) Stock Price Down 3.9% - Time to Sell?

Key Points

• Verizon shares fell 3.9% on Tuesday to around $42.37, with trading volume roughly doubling above average, reflecting a sharp selloff in the stock.
• Negative market sentiment has been fueled by Verizon’s removal from the Dow Jones Industrial Average and concerns that SpaceX could eventually enter the mobile market and pressure legacy carriers.
• Despite the pullback, Verizon recently beat earnings estimates and continues to appeal to income investors, supported by a quarterly dividend of $0.7075 per share and a 6.7% yield.

Verizon Communications Inc. (NYSE:VZ - Get Free Report)'s share price fell 3.9% during trading on Tuesday . The stock traded as low as $42.00 and last traded at $42.3710. Approximately 57,634,744 shares changed hands during trading, an increase of 100% from the average daily volume of 28,811,670 shares. The stock had previously closed at $44.10.

Verizon Communications News Roundup

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

• Positive Sentiment: Verizon and BT Group announced a 50:50 international joint venture to combine their enterprise operations, which could improve scale, streamline global connectivity services, and support long-term revenue opportunities. Reuters article on BT, Verizon announce joint venture for international enterprise units
• Neutral Sentiment: Some market commentary highlights Verizon as an income-oriented stock, which may help draw attention from dividend-focused investors even as broader sentiment remains pressured. Article on passive income stocks
• Negative Sentiment: Verizon was removed from the Dow Jones Industrial Average and replaced by Alphabet, triggering index-fund rebalancing and reinforcing concerns that the stock is losing blue-chip status. Yahoo Finance article on why Verizon shares are trading lower today
• Negative Sentiment: Investors are also worried that SpaceX could eventually pressure legacy wireless carriers like Verizon by entering the mobile market, adding a new long-term competitive threat. Barrons article on SpaceX might bring mobile phone to market

Analysts Set New Price Targets

Several brokerages recently weighed in on VZ. JPMorgan Chase & Co. lifted their price objective on shares of Verizon Communications from $49.00 to $52.00 and gave the company a "neutral" rating in a research report on Thursday, April 30th. Oppenheimer upped their target price on shares of Verizon Communications from $50.00 to $56.00 and gave the stock an "outperform" rating in a research report on Wednesday, March 11th. Dbs Bank lowered shares of Verizon Communications from a "moderate buy" rating to a "hold" rating in a research note on Tuesday, April 7th. Barclays lifted their price target on Verizon Communications from $43.00 to $47.00 and gave the company an "equal weight" rating in a report on Tuesday, March 31st. Finally, Erste Group Bank reiterated a "hold" rating on shares of Verizon Communications in a research report on Tuesday, May 5th. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and twelve have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $50.59.

Verizon Communications Price Performance

The company has a market capitalization of $176.92 billion, a price-to-earnings ratio of 10.33, a price-to-earnings-growth ratio of 1.13 and a beta of 0.24. The company has a debt-to-equity ratio of 1.38, a current ratio of 0.64 and a quick ratio of 0.61. The business has a fifty day moving average price of $46.88 and a 200 day moving average price of $45.89.

Verizon Communications (NYSE:VZ - Get Free Report) last posted its quarterly earnings data on Monday, April 27th. The cell phone carrier reported $1.28 earnings per share for the quarter, topping the consensus estimate of $1.21 by $0.07. The business had revenue of $34.44 billion during the quarter, compared to the consensus estimate of $34.82 billion. Verizon Communications had a net margin of 12.46% and a return on equity of 19.25%. The company's quarterly revenue was up 2.7% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.19 earnings per share. Verizon Communications has set its FY 2026 guidance at 4.950-4.990 EPS. On average, research analysts expect that Verizon Communications Inc. will post 4.98 earnings per share for the current fiscal year.

Verizon Communications Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, August 3rd. Stockholders of record on Friday, July 10th will be issued a $0.7075 dividend. The ex-dividend date is Friday, July 10th. This represents a $2.83 annualized dividend and a dividend yield of 6.7%. Verizon Communications's dividend payout ratio (DPR) is 69.02%.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. RKL Wealth Management LLC increased its stake in Verizon Communications by 4.3% during the first quarter. RKL Wealth Management LLC now owns 5,338 shares of the cell phone carrier's stock valued at $268,000 after acquiring an additional 218 shares during the period. Strategic Investment Solutions Inc. IL lifted its position in shares of Verizon Communications by 8.6% in the 4th quarter. Strategic Investment Solutions Inc. IL now owns 2,765 shares of the cell phone carrier's stock worth $113,000 after acquiring an additional 219 shares during the period. Frazier Financial Advisors LLC grew its holdings in shares of Verizon Communications by 32.7% during the 1st quarter. Frazier Financial Advisors LLC now owns 888 shares of the cell phone carrier's stock worth $45,000 after purchasing an additional 219 shares in the last quarter. FAS Wealth Partners Inc. grew its holdings in shares of Verizon Communications by 1.2% during the 1st quarter. FAS Wealth Partners Inc. now owns 18,421 shares of the cell phone carrier's stock worth $925,000 after purchasing an additional 223 shares in the last quarter. Finally, Sumitomo Life Insurance Co. increased its position in shares of Verizon Communications by 0.7% during the fourth quarter. Sumitomo Life Insurance Co. now owns 35,023 shares of the cell phone carrier's stock valued at $1,426,000 after purchasing an additional 227 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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