Verizon Communications (NYSE:VZ) Trading Up 2.6% - Here's Why

Key Points

• Verizon shares rose 2.6% on Wednesday, helped by investor interest in the stock as a defensive telecom name. Trading volume was below average, suggesting the move came without unusually heavy activity.
• Recent commentary has been bullish on Verizon’s fiber expansion, especially after the Frontier acquisition, with AI, cloud computing, and data center demand seen as potential long-term growth drivers. Analysts also note the stock looks relatively inexpensive versus peers.
• Verizon’s latest earnings showed EPS beat expectations at $1.28 versus $1.21 expected, and the company reaffirmed a FY2026 EPS guide of 4.950 to 4.990. It also declared a quarterly dividend of $0.7075 per share, implying a 6.0% annual yield.

Shares of Verizon Communications Inc. (NYSE:VZ - Get Free Report) were up 2.6% on Wednesday . The stock traded as high as $47.03 and last traded at $46.9540. Approximately 24,432,234 shares were traded during trading, a decline of 14% from the average daily volume of 28,310,395 shares. The stock had previously closed at $45.78.

Key Verizon Communications News

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

• Positive Sentiment: Analysts are highlighting Verizon’s fiber expansion as a potential growth driver, especially after the Frontier acquisition, with demand from AI, cloud computing, and data center connectivity seen as a long-term tailwind. Article: Can Verizon's Fiber Expansion Strategy Benefit From Rising AI Demand?
• Positive Sentiment: Recent commentary suggests Verizon looks inexpensive versus peers, with low earnings multiples helping support the stock as investors rotate toward value and dividend names. Article: Is Verizon Communications Inc. (VZ) A Good Stock To Buy Now?
• Positive Sentiment: Investor attention remains elevated around VZ, which can help keep the stock supported when market participants are actively looking for defensive telecom exposure. Article: Investors Heavily Search Verizon Communications Inc. (VZ): Here is What You Need to Know
• Neutral Sentiment: Comparison articles pitting Verizon against AST SpaceMobile do not point to a near-term catalyst, but they keep the stock in the spotlight as investors weigh Verizon’s stable wireless/fiber strategy against higher-risk satellite connectivity plays. Article: VZ vs. ASTS: Which Connectivity Stock is the Better Buy?
• Neutral Sentiment: Additional coverage from Zacks on VZ versus ASTS reinforces the same relative-value debate, but it appears more comparative than company-specific. Article: VZ vs. ASTS: Which Connectivity Stock is the Better Buy?

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on VZ shares. Erste Group Bank restated a "hold" rating on shares of Verizon Communications in a research note on Tuesday, May 5th. Scotiabank upgraded Verizon Communications from a "sector perform" rating to a "sector outperform" rating and boosted their target price for the stock from $50.25 to $54.50 in a research note on Monday, March 9th. Oppenheimer boosted their target price on Verizon Communications from $50.00 to $56.00 and gave the stock an "outperform" rating in a research note on Wednesday, March 11th. Barclays boosted their target price on Verizon Communications from $43.00 to $47.00 and gave the stock an "equal weight" rating in a research note on Tuesday, March 31st. Finally, Wells Fargo & Company boosted their target price on Verizon Communications from $44.00 to $46.00 and gave the stock an "equal weight" rating in a research note on Tuesday, April 28th. One analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and eleven have assigned a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $50.59.

Verizon Communications Trading Up 2.6%

The company has a debt-to-equity ratio of 1.38, a quick ratio of 0.61 and a current ratio of 0.64. The company has a 50 day simple moving average of $47.35 and a two-hundred day simple moving average of $45.36. The firm has a market cap of $196.06 billion, a PE ratio of 11.45, a P/E/G ratio of 1.11 and a beta of 0.24.

Verizon Communications (NYSE:VZ - Get Free Report) last posted its quarterly earnings results on Monday, April 27th. The cell phone carrier reported $1.28 earnings per share for the quarter, beating the consensus estimate of $1.21 by $0.07. The business had revenue of $34.44 billion for the quarter, compared to the consensus estimate of $34.82 billion. Verizon Communications had a return on equity of 19.25% and a net margin of 12.46%.The company's quarterly revenue was up 2.7% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.19 EPS. Verizon Communications has set its FY 2026 guidance at 4.950-4.990 EPS. Analysts expect that Verizon Communications Inc. will post 4.97 EPS for the current fiscal year.

Verizon Communications Announces Dividend

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 dividend of $0.7075 per share. This represents a $2.83 annualized dividend and a yield of 6.0%. The ex-dividend date is Friday, July 10th. Verizon Communications's payout ratio is presently 69.02%.

Institutional Trading of Verizon Communications

Several large investors have recently added to or reduced their stakes in the company. Robinswood Financial LLC acquired a new position in shares of Verizon Communications in the 1st quarter valued at about $27,000. Lam Group Inc. acquired a new position in shares of Verizon Communications in the 1st quarter valued at about $28,000. Foster Dykema Cabot & Partners LLC acquired a new position in shares of Verizon Communications in the 3rd quarter valued at about $29,000. Strengthening Families & Communities LLC lifted its holdings in shares of Verizon Communications by 490.0% in the 4th quarter. Strengthening Families & Communities LLC now owns 649 shares of the cell phone carrier's stock valued at $26,000 after buying an additional 539 shares during the period. Finally, Holos Integrated Wealth LLC acquired a new position in shares of Verizon Communications in the 4th quarter valued at about $28,000. Hedge funds and other institutional investors own 62.06% of the company's stock.

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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