Verizon Communications (NYSE:VZ) Stock Falls 1.5% – Here’s Why

Verizon Communications Inc. (NYSE:VZ)’s stock price traded down 1.5% during trading on Monday. The company traded as low as $44.00 and last traded at $44.13. 16,138,741 shares traded hands during mid-day trading, a decline of 41% from the average session volume of 27,235,787 shares. The stock had previously closed at $44.79.

Key Verizon Communications News

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

• Positive Sentiment: Verizon’s Straight Talk prepaid brand expanded its Silver, Gold and Platinum unlimited plans with more data, faster 5G access and additional benefits, while keeping base monthly prices unchanged. Home Internet bundle savings could support customer retention and growth. Straight Talk Supercharges Unlimited Plans with More Data, Faster 5G and Expanded Benefits
• Positive Sentiment: After recent price increases, Verizon introduced broader customer perks extending beyond core wireless service. The benefits may help reduce churn and defend the company’s position as competition intensifies. Verizon launches generous customer perks after raising prices
• Neutral Sentiment: Verizon formally objected to tokenized versions of its shares being traded through the ICE-OKX platform. The move limits unauthorized or unwanted distribution of tokenized replicas but is unlikely to materially affect operating results. Objections to ICE and OKX’s Tokenized Stock Venue Climb to Nine as Broadcom, Verizon Opt Out
• Neutral Sentiment: Income-focused coverage continues to highlight Verizon’s high dividend yield, but rising Treasury yields and questions about dividend sustainability could limit the appeal of the stock. These 5 Dividend Stocks Look Like Income Bargains
• Negative Sentiment: SpaceX’s spectrum transaction is raising concerns that a better-funded competitor could increase pressure on Verizon, AT&T and T-Mobile. The news triggered a broad telecom selloff as investors assessed the potential threat. SpaceX’s Spectrum Deal Hits Telecom Stocks
• Negative Sentiment: Wall Street expects year-over-year earnings growth in Verizon’s upcoming report, but analysts say the company lacks the typical signals associated with a likely earnings beat. That raises downside risk if results or guidance disappoint. Verizon Communications Reports Next Week

Analyst Ratings Changes

Several brokerages have weighed in on VZ. Royal Bank Of Canada increased their price objective on Verizon Communications from $46.00 to $47.00 and gave the company a “sector perform” rating in a report on Monday, July 27th. Barclays raised their target price on Verizon Communications from $45.00 to $46.00 and gave the stock an “equal weight” rating in a research report on Monday, July 27th. Moffett Nathanson lowered their target price on Verizon Communications from $56.00 to $49.00 and set a “neutral” rating on the stock in a research note on Monday, July 20th. BNP Paribas Exane dropped their price target on Verizon Communications from $46.00 to $44.00 and set a “neutral” rating on the stock in a research report on Tuesday, July 14th. Finally, Weiss Ratings reiterated a “buy (b)” rating on shares of Verizon Communications in a research note on Wednesday, August 26th. Eight analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $50.80.

Verizon Communications Price Performance

The firm’s 50 day moving average price is $47.89 and its two-hundred day moving average price is $46.81. The company has a debt-to-equity ratio of 1.36, a current ratio of 0.60 and a quick ratio of 0.57. The stock has a market cap of $183.35 billion, a PE ratio of 11.49, a P/E/G ratio of 1.71 and a beta of 0.26.

Verizon Communications (NYSE:VZ) last announced its quarterly earnings results on Friday, July 24th. The cell phone carrier reported $1.30 EPS for the quarter, beating analysts’ consensus estimates of $1.27 by $0.03. The company had revenue of $34.25 billion for the quarter, compared to analysts’ expectations of $35.16 billion. Verizon Communications had a net margin of 11.64% and a return on equity of 19.48%. Verizon Communications’s revenue was down .7% compared to the same quarter last year. During the same period in the prior year, the company posted $1.22 EPS. Verizon Communications has set its FY 2026 guidance at 4.990-5.040 EPS. On average, research analysts expect that Verizon Communications Inc. will post 5.03 earnings per share for the current year.

Verizon Communications Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, November 2nd. Shareholders of record on Friday, October 9th will be issued a dividend of $0.7075 per share. The ex-dividend date of this dividend is Friday, October 9th. This represents a $2.83 dividend on an annualized basis and a yield of 6.4%. Verizon Communications’s payout ratio is presently 73.70%.

Insider Activity

In other Verizon Communications news, CEO Kyle Malady sold 1,100 shares of the stock in a transaction on Tuesday, October 13th. The stock was sold at an average price of $42.93, for a total transaction of $47,223.00. Following the sale, the chief executive officer owned 101,066 shares in the company, valued at $4,338,763.38. This represents a 1.08% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 8,800 shares of company stock worth $420,145 in the last quarter. Corporate insiders own 0.03% of the company’s stock.

Hedge Funds Weigh In On Verizon Communications

Several hedge funds have recently made changes to their positions in the stock. V Square Quantitative Management LLC boosted its position in shares of Verizon Communications by 5.0% in the third quarter. V Square Quantitative Management LLC now owns 95,610 shares of the cell phone carrier’s stock valued at $4,386,000 after acquiring an additional 4,556 shares during the period. YANKCOM Partnership grew its stake in Verizon Communications by 4.1% during the third quarter. YANKCOM Partnership now owns 24,425 shares of the cell phone carrier’s stock valued at $1,120,000 after acquiring an additional 973 shares in the last quarter. Cliftonlarsonallen Wealth Advisors LLC increased its holdings in Verizon Communications by 1.1% during the 3rd quarter. Cliftonlarsonallen Wealth Advisors LLC now owns 35,806 shares of the cell phone carrier’s stock worth $1,642,000 after acquiring an additional 380 shares during the period. Fortitude Family Office LLC increased its holdings in Verizon Communications by 26.2% during the 3rd quarter. Fortitude Family Office LLC now owns 4,414 shares of the cell phone carrier’s stock worth $202,000 after acquiring an additional 917 shares during the period. Finally, Meridian Investment Counsel Inc. increased its holdings in Verizon Communications by 24.2% during the 3rd quarter. Meridian Investment Counsel Inc. now owns 66,395 shares of the cell phone carrier’s stock worth $3,046,000 after acquiring an additional 12,941 shares during the period. 62.06% of the stock is currently owned by hedge funds and other institutional investors.

About Verizon Communications

Verizon Communications Inc is a telecommunications company that provides wireless communications, broadband, and digital connectivity services. Through its consumer business, Verizon offers mobile voice and data plans, smartphones and other connected devices, home internet, fixed wireless access, and fiber-optic broadband services under the Fios brand.

Verizon also serves businesses, government agencies, and other organizations with wireless connectivity, private networks, internet and data services, managed communications, cloud and security solutions, and Internet of Things services.