Verizon Communications (NYSE:VZ) Trading Down 1.4% - Time to Sell?

Key Points

• Verizon reported a Q1 adjusted EPS of $1.28 that beat estimates and added ~55,000 net wireless subscribers (its first positive phone adds since 2013), and management raised FY2026 EPS guidance to $4.95–$4.99, reinforcing a “turnaround” narrative.
• Revenue slightly missed expectations ($34.44B vs. ~$34.79B) and rising competitive pressure from T‑Mobile and Comcast could weigh on top‑line momentum and limit multiple expansion despite the beat.
• The company boosted its quarterly dividend to $0.7075 (a 6.1% yield), analysts hold a consensus “Moderate Buy” with an average price target around $50.41, while the stock traded down about 1.4% intraday.

Verizon Communications Inc. (NYSE:VZ - Get Free Report) dropped 1.4% on Wednesday . The stock traded as low as $46.26 and last traded at $46.5720. Approximately 24,162,691 shares were traded during mid-day trading, a decline of 21% from the average daily volume of 30,758,133 shares. The stock had previously closed at $47.24.

Key Stories Impacting Verizon Communications

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

• Positive Sentiment: Q1 adjusted EPS beat expectations (reported $1.28 vs. ~$1.20 est.), GAAP EPS and net income rose year-over-year, supporting the “turnaround” narrative from management. Verizon CEO Claims Turnaround Is Officially Underway
• Positive Sentiment: Verizon reported ~55,000 net wireless additions (first positive phone adds since 2013) and said promotions helped customer trends, which led management to raise FY26 profit guidance — a clear positive for cash flow and dividend safety. Verizon's promos lead to 55K new wireless subscribers; raises FY26 profit guidance
• Positive Sentiment: Management set FY2026 EPS guidance at $4.95–$4.99, and the company reiterated focus on profitability and fiber investment — this “beat-and-raise” posture is underpinning investor confidence. Verizon Communications Inc. Q1 2026 Earnings Call Summary
• Positive Sentiment: Some sell-side shops nudged targets/ratings after the print (Morgan Stanley raised its PT to $50; Wells Fargo lifted its PT), which supports near-term upside vs. the prior consensus. Analyst price-target moves
• Neutral Sentiment: Promotional offers and streaming discounts (Netflix/Disney+ bundles, etc.) are being used to boost retention and ARPU — helpful for churn and customer value but margin impact depends on promotion intensity. Verizon's Streaming Deals Let You Watch Netflix, Disney Plus and More, for Less
• Neutral Sentiment: Industry infrastructure/software updates (e.g., StarlingX v12.0) are relevant to large telcos’ distributed cloud strategies but are not an immediate earnings driver for Verizon. MEDIA ADVISORY: StarlingX, Infrastructure of Choice...
• Negative Sentiment: Revenue slightly missed consensus ($34.44B reported vs. ~$34.79B expected), which tempers the beat and raises questions about top-line momentum. VZ Q1 Deep Dive: Customer Retention and Efficiency Drive Operating Momentum
• Negative Sentiment: Competitive intensity is rising — T‑Mobile’s strong quarter and aggressive fiber/broadband push (and Comcast’s mobile moves) create a longer‑term threat to pricing and subscriber share, which may cap multiple expansion. T-Mobile Earnings / Broadband strategy analysis

Analysts Set New Price Targets

VZ has been the subject of several research analyst reports. JPMorgan Chase & Co. increased their price objective on Verizon Communications from $47.00 to $49.00 and gave the stock a "neutral" rating in a report on Tuesday, February 3rd. Sanford C. Bernstein reiterated a "market perform" rating and issued a $48.00 price objective on shares of Verizon Communications in a report on Monday, February 2nd. Evercore increased their target price on Verizon Communications from $48.00 to $50.00 and gave the stock an "outperform" rating in a research report on Monday, February 2nd. William Blair raised Verizon Communications to an "outperform" rating in a research report on Monday, February 2nd. Finally, Dbs Bank lowered Verizon Communications from a "moderate buy" rating to a "hold" rating in a research report on Tuesday, April 7th. Two equities research analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating and ten have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $50.41.

Verizon Communications Price Performance

The stock has a market cap of $194.67 billion, a P/E ratio of 11.36, a price-to-earnings-growth ratio of 1.20 and a beta of 0.29. The firm has a 50-day moving average price of $48.99 and a 200-day moving average price of $43.95. The company has a debt-to-equity ratio of 1.38, a quick ratio of 0.87 and a current ratio of 0.64.

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, 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 company had revenue of $34.44 billion during the quarter, compared to analyst estimates of $34.79 billion. During the same quarter last year, the company earned $1.19 EPS. The firm'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. On average, analysts forecast that Verizon Communications Inc. will post 4.95 earnings per share for the current fiscal year.

Verizon Communications Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, May 1st. Investors of record on Friday, April 10th will be given a dividend of $0.7075 per share. This is a boost from Verizon Communications's previous quarterly dividend of $0.69. The ex-dividend date of this dividend is Friday, April 10th. This represents a $2.83 dividend on an annualized basis and a yield of 6.1%. Verizon Communications's dividend payout ratio is 69.02%.

Insider Activity at Verizon Communications

In related news, EVP Joseph J. Russo sold 9,579 shares of the firm's stock in a transaction that occurred on Monday, February 2nd. The stock was sold at an average price of $44.88, for a total transaction of $429,905.52. Following the completion of the transaction, the executive vice president owned 44,045 shares of the company's stock, valued at $1,976,739.60. This trade represents a 17.86% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Hans Erik Vestberg sold 200,000 shares of the firm's stock in a transaction that occurred on Tuesday, February 24th. The shares were sold at an average price of $49.61, for a total value of $9,922,000.00. Following the transaction, the director directly owned 145,069 shares of the company's stock, valued at approximately $7,196,873.09. This trade represents a 57.96% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 218,148 shares of company stock valued at $10,780,356 in the last 90 days. Corporate insiders own 0.03% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Norges Bank bought a new stake in shares of Verizon Communications in the 4th quarter worth $2,357,158,000. Bank of New York Mellon Corp increased its holdings in shares of Verizon Communications by 31.2% in the 4th quarter. Bank of New York Mellon Corp now owns 31,584,162 shares of the cell phone carrier's stock worth $1,286,423,000 after purchasing an additional 7,509,055 shares in the last quarter. State Street Corp increased its holdings in shares of Verizon Communications by 3.5% in the 4th 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 holdings in shares of Verizon Communications by 5.3% in the 4th 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 purchasing an additional 5,851,715 shares in the last quarter. Finally, Vanguard Group Inc. increased its holdings in shares of Verizon Communications by 1.5% in the 4th quarter. Vanguard Group Inc. now owns 379,402,347 shares of the cell phone carrier's stock worth $15,453,058,000 after purchasing an additional 5,497,598 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.

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