Verizon Communications (NYSE:VZ) Stock Price Down 2.2% – Here’s Why

Verizon Communications Inc. (NYSE:VZ) dropped 2.2% during trading on Wednesday . The company traded as low as $45.43 and last traded at $45.70. 25,082,372 shares were traded during mid-day trading, a decline of 12% from the average daily volume of 28,361,848 shares. The stock had previously closed at $46.73.

More Verizon Communications News

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

• Positive Sentiment: Verizon is rolling out new wireless offerings, including the Simplicity plan and Verizon One, to address subscriber losses and improve customer retention by emphasizing simpler, lower-cost pricing. Verizon (VZ) Launches Simplicity And Verizon One Plans To Win Back Subscribers
• Neutral Sentiment: Verizon’s prior earnings results were mixed: earnings per share beat expectations, but revenue came in slightly below estimates, suggesting stable profitability but limited top-line momentum.
• Neutral Sentiment: Some commentary highlights Verizon as a defensive dividend stock that has benefited from rotation out of higher-volatility tech names, which can provide support during choppy markets. Why Johnson & Johnson, Altria, Verizon, and Other Safe Dividend Stocks Climbed Today
• Negative Sentiment: Verizon will exit the Dow on June 29, with Alphabet taking its place, which may weigh on sentiment because the company is being removed from a major blue-chip benchmark. Alphabet added to Dow Jones Industrial Average, replacing Verizon
• Negative Sentiment: The index change reflects concern that Verizon’s low share price gives it an “immaterial impact” in the Dow, reinforcing the view that the stock’s weighting and market influence have diminished. Dow Jones reshuffle: Alphabet to join, replacing Verizon
• Negative Sentiment: Recent reports also point to Verizon facing a fresh market test after a rating update, adding to investor caution around the stock. Verizon (NYSE:VZ) Faces A Fresh Market Test After Rating Update

Wall Street Analyst Weigh In

VZ has been the subject of several recent research reports. Freedom Capital upgraded shares of Verizon Communications to a “hold” rating in a research note on Friday, June 12th. Erste Group Bank restated a “hold” rating on shares of Verizon Communications in a research report on Tuesday, May 5th. JPMorgan Chase & Co. upped their price objective on Verizon Communications from $49.00 to $52.00 and gave the company a “neutral” rating in a research note on Thursday, April 30th. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Verizon Communications in a research report on Friday, May 29th. Finally, Oppenheimer lifted their target price on Verizon Communications from $50.00 to $56.00 and gave the company an “outperform” rating in a research note on Wednesday, March 11th. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and twelve have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $50.59.

Verizon Communications Stock Performance

The company has a market cap of $190.82 billion, a PE ratio of 11.15, a P/E/G ratio of 1.11 and a beta of 0.24. 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 stock’s 50-day simple moving average is $46.89 and its 200 day simple moving average is $45.77.

Verizon Communications (NYSE:VZ) last issued its 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. Verizon Communications had a net margin of 12.46% and a return on equity of 19.25%. The business had revenue of $34.44 billion for the quarter, compared to the consensus estimate of $34.82 billion. During the same quarter in the previous year, the firm earned $1.19 earnings per share. The business’s quarterly revenue was up 2.7% compared to the same quarter last year. Verizon Communications has set its FY 2026 guidance at 4.950-4.990 EPS. As a group, equities analysts anticipate that Verizon Communications Inc. will post 4.97 EPS for the current year.

Verizon Communications Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, August 3rd. Shareholders of record on Friday, July 10th will be issued a $0.7075 dividend. This represents a $2.83 dividend on an annualized basis and a yield of 6.2%. The ex-dividend date of this dividend is Friday, July 10th. Verizon Communications’s payout ratio is currently 69.02%.

Hedge Funds Weigh In On Verizon Communications

A number of large investors have recently modified their holdings of VZ. Ballast Advisors LLC acquired a new stake in shares of Verizon Communications in the 1st quarter valued at approximately $65,000. MTM Financial Group LLC purchased a new position in Verizon Communications in the first quarter worth $235,000. Sapient Capital LLC raised its position in Verizon Communications by 29.2% in the first quarter. Sapient Capital LLC now owns 18,584 shares of the cell phone carrier’s stock worth $933,000 after acquiring an additional 4,198 shares in the last quarter. Southern Financial Group LLC lifted its holdings in Verizon Communications by 2.1% in the first quarter. Southern Financial Group LLC now owns 19,321 shares of the cell phone carrier’s stock valued at $970,000 after acquiring an additional 405 shares during the period. Finally, S&A Financial Services Inc. purchased a new stake in shares of Verizon Communications during the 1st quarter worth $379,000. 62.06% of the stock is owned by hedge funds and other institutional investors.

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.