Verizon Communications (NYSE:VZ) Trading Up 1.2% - Should You Buy?

Key Points

• Verizon shares rose 1.2% on Monday, closing at $42.64 after trading as high as $42.85, though volume was below average.
• Recent company news has focused on growth initiatives, including the launch of the Gizmo Watch 4 for kids and a deal to power new BMW vehicles in the U.S. with 5G Standalone.
• Investors are also watching Verizon’s July 24 earnings report; the stock currently carries a Wall Street consensus of Hold with an average target price of $50.28, and it offers a 6.6% dividend yield.

Verizon Communications Inc. (NYSE:VZ - Get Free Report)'s share price shot up 1.2% during trading on Monday . The company traded as high as $42.85 and last traded at $42.64. 24,629,432 shares were traded during trading, a decline of 16% from the average daily volume of 29,392,152 shares. The stock had previously closed at $42.12.

Trending Headlines about Verizon Communications

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

• Positive Sentiment: Verizon launched the new Gizmo Watch 4, a kid-friendly smartwatch with safety features like watch-removal alerts and real-time location tracking, expanding its Verizon Family ecosystem and potentially supporting device sales and subscriber growth. Article Title
• Positive Sentiment: Verizon is set to power new BMW Group vehicles in the U.S. with 5G Standalone, which could deepen its presence in connected-car services and create another growth avenue for its network business. Article Title
• Positive Sentiment: Verizon’s Small Business Super Pitch competition and related brand marketing keep the company visible ahead of major consumer and business sales periods, which may help customer engagement. Article Title
• Neutral Sentiment: Several articles focused on whether investors should buy Verizon before its July 24 earnings report and on the stock’s appeal as a defensive, high-yield name. These pieces mainly reflect market anticipation rather than new company-specific fundamentals. Article Title
• Neutral Sentiment: Commentary describing Verizon as a “cash machine” and a defensive dividend stock may support the stock’s income appeal, but it does not by itself change the company’s near-term operating outlook. Article Title

Wall Street Analyst Weigh In

Several analysts recently issued reports on VZ shares. Dbs Bank lowered shares of Verizon Communications from a "moderate buy" rating to a "hold" rating in a research report on Tuesday, April 7th. Citigroup lifted their target price on Verizon Communications from $50.00 to $55.00 and gave the company a "buy" rating in a research report on Friday, March 20th. Weiss Ratings reissued a "buy (b)" rating on shares of Verizon Communications in a report on Friday, May 29th. Freedom Capital raised Verizon Communications to a "hold" rating in a research note on Friday, June 12th. Finally, JPMorgan Chase & Co. lifted their price objective on Verizon Communications from $49.00 to $52.00 and gave the company a "neutral" rating in a research report on Thursday, April 30th. Nine analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $50.28.

Verizon Communications Price Performance

The firm has a market capitalization of $178.05 billion, a P/E ratio of 10.40, a price-to-earnings-growth ratio of 1.03 and a beta of 0.26. The company has a current ratio of 0.64, a quick ratio of 0.61 and a debt-to-equity ratio of 1.38. The firm has a 50 day moving average price of $46.10 and a 200-day moving average price of $46.01.

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

Verizon Communications Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, August 3rd. Investors 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 dividend on an annualized basis and a dividend yield of 6.6%. Verizon Communications's payout ratio is presently 69.02%.

Hedge Funds Weigh In On Verizon Communications

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Strengthening Families & Communities LLC grew its stake in Verizon Communications by 490.0% during 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 acquired a new position in Verizon Communications in the 1st quarter worth approximately $27,000. Holos Integrated Wealth LLC purchased a new position in Verizon Communications during the 4th quarter worth approximately $28,000. Lam Group Inc. acquired a new stake in shares of Verizon Communications in the first quarter worth $28,000. Finally, EQ Wealth Advisors LLC purchased a new position in shares of Verizon Communications during the fourth quarter worth $29,000. Hedge funds and other 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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