Verizon Communications (NYSE:VZ) Trading Up 1.4% - Still a Buy?

Key Points

• Verizon shares rose 1.4% in mid-day trading, with volume more than double the daily average, signaling heightened investor attention.
• The company announced a global connectivity joint venture with BT aimed at serving more than 3,000 enterprise customers in 180+ countries, potentially boosting its enterprise and international growth.
• Verizon also faces near-term pressure from a $350 million to $450 million severance charge and additional asset-rationalization costs in Q2, even as analysts still expect modest earnings growth and a high dividend yield of 6.6%.

Verizon Communications Inc. (NYSE:VZ - Get Free Report) shares were up 1.4% during mid-day trading on Thursday . The company traded as high as $43.08 and last traded at $42.5740. 58,861,405 shares traded hands during trading, an increase of 101% from the average session volume of 29,310,371 shares. The stock had previously closed at $41.99.

More Verizon Communications News

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

• Positive Sentiment: Verizon announced a new global connectivity joint venture with BT that will serve more than 3,000 enterprise customers across 180+ countries, targeting demand tied to cloud, AI, and compliance services. The deal could expand Verizon’s international reach and improve its enterprise growth profile. Verizon (VZ) Sees Severance Charge from Headcount Reductions
• Positive Sentiment: Wall Street expects Verizon’s next quarterly report to show a single-digit profit increase, suggesting the company may still be delivering modest earnings growth ahead of its July results. What to Expect From Verizon Communications' Next Quarterly Earnings Report
• Neutral Sentiment: Analysts and media coverage continue to frame Verizon as a high-yield dividend stock with solid fundamentals, but this is more of a valuation reminder than a new catalyst. Pfizer vs Verizon Communications: Which High-Yielding Dividend Stock Is the Better Buy?
• Negative Sentiment: Verizon disclosed that ongoing transformation efforts will hit Q2 results with a $350 million to $450 million severance charge plus $200 million to $300 million in asset-rationalization costs, underscoring near-term margin pressure. Verizon (VZ) Sees Severance Charge from Headcount Reductions
• Negative Sentiment: New commentary on SpaceX’s satellite ambitions is adding to investor concern that wireless carriers like Verizon could face longer-term competitive threats, especially if satellite-to-phone service improves. SpaceX Threat Wipes Out $46B in Market Value From ‘Big Three’ Telecoms—And the Pain May Not Be Over

Analysts Set New Price Targets

A number of analysts recently weighed in on VZ shares. JPMorgan Chase & Co. increased their price target 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. Freedom Capital raised shares of Verizon Communications to a "hold" rating in a research note on Friday, June 12th. Raymond James Financial reissued an "outperform" rating and set a $56.00 price target on shares of Verizon Communications in a research report on Thursday, March 12th. Citigroup boosted their price target on shares of Verizon Communications from $50.00 to $55.00 and gave the company a "buy" rating in a report on Friday, March 20th. Finally, Scotiabank raised Verizon Communications from a "sector perform" rating to a "sector outperform" rating and raised their price objective for the stock from $50.25 to $54.50 in a research note on Monday, March 9th. One investment analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and twelve have issued a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $50.59.

Verizon Communications Price Performance

The company has a market cap of $177.77 billion, a price-to-earnings ratio of 10.38, a PEG ratio of 1.03 and a beta of 0.24. The company has a quick ratio of 0.61, a current ratio of 0.64 and a debt-to-equity ratio of 1.38. The company's fifty day moving average price is $46.71 and its two-hundred day moving average price is $45.92.

Verizon Communications (NYSE:VZ - Get Free Report) last issued its quarterly earnings data 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 business had revenue of $34.44 billion for the quarter, compared to analyst estimates of $34.82 billion. Verizon Communications had a net margin of 12.46% and a return on equity of 19.25%. The firm's quarterly revenue was up 2.7% on a year-over-year basis. During the same period last year, the business posted $1.19 earnings per share. Verizon Communications has set its FY 2026 guidance at 4.950-4.990 EPS. On average, equities research analysts forecast that Verizon Communications Inc. will post 4.98 EPS for the current fiscal year.

Verizon Communications Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, August 3rd. Shareholders of record on Friday, July 10th will be paid a $0.7075 dividend. The ex-dividend date of this dividend is Friday, July 10th. This represents a $2.83 annualized dividend and a dividend yield of 6.6%. Verizon Communications's dividend payout ratio (DPR) is currently 69.02%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the company. Norges Bank acquired a new position in Verizon Communications during the 4th quarter worth approximately $2,357,158,000. Bank of America Corp DE raised its holdings in shares of Verizon Communications by 15.4% in the first quarter. Bank of America Corp DE now owns 62,101,021 shares of the cell phone carrier's stock valued at $3,117,471,000 after purchasing an additional 8,289,877 shares during the last quarter. Bank of New York Mellon Corp lifted its position in shares of Verizon Communications by 31.2% in the fourth 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 lifted its position in shares of Verizon Communications by 3.5% in the fourth 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. Finally, Charles Schwab Investment Management Inc. boosted its holdings in Verizon Communications by 5.3% during the fourth 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 during the last quarter. 62.06% of the stock is owned by institutional investors and hedge funds.

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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