Verizon Communications (NYSE:VZ) Trading 2.4% Higher – Here’s Why

Verizon Communications Inc. (NYSE:VZ) shares were up 2.4% during mid-day trading on Thursday . The stock traded as high as $44.22 and last traded at $43.8450. 25,051,891 shares were traded during trading, a decline of 14% from the average daily volume of 29,279,162 shares. The stock had previously closed at $42.83.

Verizon Communications News Roundup

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

• Positive Sentiment: KeyCorp raised its earnings estimates for Verizon for multiple future periods, including FY2027, suggesting analysts see improving profitability and a stronger earnings outlook.
• Positive Sentiment: Verizon’s partnership with BMW and KDDI on U.S. connected car services could support future revenue growth through 5G and IoT connectivity.
• Positive Sentiment: Verizon’s expanding broadband efforts may help diversify growth beyond wireless subscriptions.
• Neutral Sentiment: JD Power said wireless network quality returned to record highs, which supports the broader industry backdrop but does not directly change Verizon’s near-term fundamentals.
• Neutral Sentiment: Scotiabank lowered its price target on Verizon to $51.50 from $54.50, but kept a sector outperform rating, indicating continued confidence despite a more cautious valuation view.
• Negative Sentiment: Verizon’s plan to cut about 3,000 jobs and sell 274 stores may pressure the stock near term because investors often worry about transition costs, morale, and the impact on sales.
• Negative Sentiment: Analyst commentary and recent reports about competition from SpaceX/Starlink have also contributed to concerns about pressure in the wireless market.

Analysts Set New Price Targets

A number of research analysts recently weighed in on the company. Erste Group Bank reissued a “hold” rating on shares of Verizon Communications in a research note on Tuesday, May 5th. Freedom Capital raised Verizon Communications to a “hold” rating in a research report on Friday, June 12th. Morgan Stanley increased their price target on Verizon Communications from $49.00 to $50.00 and gave the company an “equal weight” rating in a report on Tuesday, April 28th. Weiss Ratings reissued a “buy (b)” rating on shares of Verizon Communications in a research report on Friday, May 29th. Finally, Wells Fargo & Company began coverage on shares of Verizon Communications in a research note on Wednesday, July 8th. They issued an “equal weight” rating and a $43.00 price objective for the company. Nine investment analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $50.09.

Verizon Communications Stock Up 2.4%

The company has a debt-to-equity ratio of 1.38, a current ratio of 0.64 and a quick ratio of 0.61. The business has a 50 day moving average price of $45.81 and a 200 day moving average price of $46.07. The firm has a market capitalization of $183.08 billion, a P/E ratio of 10.69, a price-to-earnings-growth ratio of 1.03 and a beta of 0.26.

Verizon Communications (NYSE:VZ) last announced 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 return on equity of 19.25% and a net margin of 12.46%.The firm had revenue of $34.44 billion during the quarter, compared to the consensus estimate of $34.82 billion. During the same quarter in the prior year, the company earned $1.19 EPS. The firm’s revenue for the quarter 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. On average, analysts predict that Verizon Communications Inc. will post 4.98 earnings per share for the current year.

Verizon Communications Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, August 3rd. Stockholders of record on Friday, July 10th will be issued a dividend of $0.7075 per share. The ex-dividend date is Friday, July 10th. This represents a $2.83 dividend on an annualized basis and a dividend yield of 6.5%. Verizon Communications’s payout ratio is 69.02%.

Institutional Investors Weigh In On Verizon Communications

Hedge funds and other institutional investors have recently modified their holdings of the stock. Regent Peak Wealth Advisors LLC raised its stake in Verizon Communications by 6.0% during the 2nd quarter. Regent Peak Wealth Advisors LLC now owns 5,834 shares of the cell phone carrier’s stock valued at $247,000 after purchasing an additional 329 shares during the last quarter. Bank & Trust Co boosted its holdings in Verizon Communications by 1.6% in the 2nd quarter. Bank & Trust Co now owns 47,798 shares of the cell phone carrier’s stock valued at $2,024,000 after purchasing an additional 739 shares during the period. Butensky & Cohen Financial Security Inc. boosted its holdings in Verizon Communications by 1.7% in the 2nd quarter. Butensky & Cohen Financial Security Inc. now owns 122,165 shares of the cell phone carrier’s stock valued at $5,172,000 after purchasing an additional 2,087 shares during the period. Whitener Capital Management Inc. grew its position in Verizon Communications by 11.6% in the 2nd quarter. Whitener Capital Management Inc. now owns 42,340 shares of the cell phone carrier’s stock worth $1,793,000 after purchasing an additional 4,413 shares during the last quarter. Finally, Tema ETFs LLC grew its position in Verizon Communications by 10.7% in the 2nd quarter. Tema ETFs LLC now owns 82,352 shares of the cell phone carrier’s stock worth $3,487,000 after purchasing an additional 7,975 shares during the last quarter. Institutional investors and hedge funds 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.