Verizon Communications (NYSE:VZ) Stock Price Down 2.1% – Should You Sell?

Shares of Verizon Communications Inc. (NYSE:VZ) dropped 2.1% on Tuesday . The company traded as low as $38.80 and last traded at $39.0050. Approximately 37,162,503 shares changed hands during trading, an increase of 13% from the average daily volume of 32,766,445 shares. The stock had previously closed at $39.84.

Verizon Communications News Roundup

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

• Positive Sentiment: FCC revises phone-unlocking rule, which the agency says was costing Verizon hundreds of millions annually due to fraud — this regulatory relief should reduce fraud-related losses and help margins. FCC revises Verizon phone unlocking rules after significant fraud issues
• Positive Sentiment: Analyst sentiment appears to be improving as coverage highlights steadier growth and defensible cash flows; consensus price targets still imply upside versus the current share level, supporting a constructive medium-term view. Analyst Sentiment on Verizon Communications (VZ) Improves Amid Steadier Growth and Defensible Cash Flows
• Neutral Sentiment: Dividend-focused pieces point out Verizon’s large, reliable payout and how many shares yield ~$1,000/year — this keeps income investors interested but doesn’t change near-term operational outlook. Here’s How Many Shares of Verizon Communications You’d Need for $1,000 in Yearly Dividends
• Neutral Sentiment: Coverage in dividend roundup lists (e.g., Dogs of the Dow) reiterates Verizon’s high yield relative to peers — supportive for yield-seeking investors but neutral for growth-driven flows. The Dogs of the Dow: 10 Downtrodden Dividends Paying Out Up to 6.8%
• Negative Sentiment: Scotiabank trimmed its price target on VZ (from $51 to $48) and kept a Sector Perform rating, citing intensifying wireless promotions — that suggests margin/competitive pressures and helps explain some selling. Scotiabank Trims Verizon (VZ) Price Target as Wireless Promotions Intensify

Wall Street Analysts Forecast Growth

VZ has been the subject of several recent research reports. Weiss Ratings downgraded Verizon Communications from a “buy (b-)” rating to a “hold (c+)” rating in a report on Friday, October 24th. Wall Street Zen lowered shares of Verizon Communications from a “buy” rating to a “hold” rating in a research note on Friday, September 26th. BNP Paribas Exane downgraded shares of Verizon Communications from an “outperform” rating to a “neutral” rating and set a $44.00 price objective on the stock. in a report on Tuesday, October 21st. Morgan Stanley dropped their price objective on shares of Verizon Communications from $48.00 to $47.00 and set an “equal weight” rating on the stock in a research note on Wednesday, December 10th. Finally, TD Cowen decreased their target price on shares of Verizon Communications from $56.00 to $51.00 and set a “buy” rating for the company in a research report on Thursday, October 30th. Two research analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating and eleven have issued a Hold rating to the stock. According to data from MarketBeat.com, Verizon Communications presently has an average rating of “Moderate Buy” and a consensus target price of $47.47.

Verizon Communications Price Performance

The company has a quick ratio of 0.69, a current ratio of 0.74 and a debt-to-equity ratio of 1.19. The company has a market capitalization of $164.46 billion, a P/E ratio of 8.33, a price-to-earnings-growth ratio of 3.86 and a beta of 0.34. The business’s 50-day moving average is $40.55 and its two-hundred day moving average is $41.86.

Verizon Communications (NYSE:VZ) last posted its earnings results on Wednesday, October 29th. The cell phone carrier reported $1.21 EPS for the quarter, topping the consensus estimate of $1.19 by $0.02. The firm had revenue of $33.82 billion for the quarter, compared to analysts’ expectations of $34.19 billion. Verizon Communications had a net margin of 14.43% and a return on equity of 19.31%. The company’s quarterly revenue was up 1.5% compared to the same quarter last year. During the same quarter last year, the firm earned $1.19 EPS. As a group, analysts predict that Verizon Communications Inc. will post 4.69 earnings per share for the current year.

Verizon Communications Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, February 2nd. Shareholders of record on Monday, January 12th will be given a $0.69 dividend. The ex-dividend date of this dividend is Monday, January 12th. This represents a $2.76 annualized dividend and a yield of 7.1%. Verizon Communications’s payout ratio is currently 58.97%.

Institutional Investors Weigh In On Verizon Communications

Large investors have recently made changes to their positions in the business. Hudock Inc. boosted its holdings in Verizon Communications by 0.6% in the second quarter. Hudock Inc. now owns 39,842 shares of the cell phone carrier’s stock valued at $1,724,000 after purchasing an additional 238 shares in the last quarter. Wright Investors Service Inc. boosted its holdings in shares of Verizon Communications by 1.2% in the 2nd quarter. Wright Investors Service Inc. now owns 21,255 shares of the cell phone carrier’s stock valued at $920,000 after buying an additional 243 shares in the last quarter. McLean Asset Management Corp grew its position in shares of Verizon Communications by 2.9% in the 3rd quarter. McLean Asset Management Corp now owns 8,571 shares of the cell phone carrier’s stock valued at $355,000 after buying an additional 243 shares during the last quarter. Red Spruce Capital LLC raised its stake in Verizon Communications by 0.3% during the 3rd quarter. Red Spruce Capital LLC now owns 71,541 shares of the cell phone carrier’s stock worth $3,144,000 after acquiring an additional 246 shares in the last quarter. Finally, Camden National Bank lifted its position in Verizon Communications by 4.6% in the second quarter. Camden National Bank now owns 5,666 shares of the cell phone carrier’s stock valued at $245,000 after acquiring an additional 248 shares during the last quarter. 62.06% of the stock is owned by hedge funds and other institutional investors.

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.