Verizon Communications (NYSE:VZ) Stock Jumps 2.6% – Still a Buy?

Verizon Communications Inc. (NYSE:VZ)’s share price traded up 2.6% during mid-day trading on Monday. The stock traded as high as $42.79 and last traded at $42.7260. Approximately 28,931,138 shares changed hands during trading, an increase of 6% from the average daily volume of 27,314,453 shares. The stock had previously closed at $41.65.

Trending Headlines about Verizon Communications

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

• Positive Sentiment: Verizon announced complimentary safety, family-protection, spam-blocking, and six-month Google AI Pro benefits for eligible customers. The perks could improve customer retention and strengthen the value proposition of its wireless plans. Verizon delivers extra value with free safety, family and AI perks
• Positive Sentiment: A new SKYBOXE reseller agreement expands Verizon Business’s distribution of 5G fixed-wireless service to small businesses and remote operations, supporting broadband growth and offering an alternative to wired connections. Verizon adds a reseller for business 5G fixed wireless
• Positive Sentiment: Several income-focused analyses highlight Verizon’s low forward valuation, roughly 6%–6.5% dividend yield, improving cash flow, steady wireless revenue, and broadband growth. These factors may attract value and dividend investors after the sector selloff. Verizon’s low forward P/E and dividend yield
• Neutral Sentiment: Bernstein maintained a Hold rating, indicating limited conviction that near-term catalysts will materially change Verizon’s outlook.
• Neutral Sentiment: CEO Kyle Malady sold 1,100 shares under a pre-arranged Rule 10b5-1 plan. The sale reduced his holdings by only 1.08% and therefore carries limited signaling value. SEC insider transaction filing
• Negative Sentiment: Bernstein reportedly cut its Verizon price target, citing potential disruption from SpaceX’s Starlink mobile service, aggressive incumbent-carrier pricing, and normal fourth-quarter seasonality. The concerns weigh on expectations for wireless pricing and subscriber growth. Bernstein cuts telecom stock price targets
• Negative Sentiment: Customer backlash over Verizon’s planned retirement of certain legacy landline services creates reputational and regulatory risk, although the company is clarifying its transition plans. Verizon responds to customer backlash over landline retirement

Analysts Set New Price Targets

Several brokerages have recently commented on VZ. Royal Bank Of Canada increased their target price on shares of Verizon Communications from $46.00 to $47.00 and gave the company a “sector perform” rating in a report on Monday, July 27th. Weiss Ratings restated a “buy (b)” rating on shares of Verizon Communications in a report on Wednesday, August 26th. Barclays upped their price objective on shares of Verizon Communications from $45.00 to $46.00 and gave the stock an “equal weight” rating in a research report on Monday, July 27th. Morgan Stanley increased their price objective on shares of Verizon Communications from $50.00 to $52.00 and gave the company an “equal weight” rating in a research note on Monday, July 27th. Finally, BNP Paribas Exane decreased their price objective on shares of Verizon Communications from $46.00 to $44.00 and set a “neutral” rating for the company in a research note on Tuesday, July 14th. Eight analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company’s stock. According to data from MarketBeat, Verizon Communications presently has an average rating of “Hold” and a consensus price target of $50.80.

Verizon Communications Trading Up 2.0%

The firm has a 50-day moving average price of $48.02 and a 200-day moving average price of $46.94. The company has a current ratio of 0.60, a quick ratio of 0.57 and a debt-to-equity ratio of 1.36. The stock has a market capitalization of $184.49 billion, a PE ratio of 11.56, a price-to-earnings-growth ratio of 1.45 and a beta of 0.26.

Verizon Communications (NYSE:VZ) last posted its quarterly earnings data on Friday, July 24th. The cell phone carrier reported $1.30 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.27 by $0.03. Verizon Communications had a net margin of 11.64% and a return on equity of 19.48%. The business had revenue of $34.25 billion during the quarter, compared to the consensus estimate of $35.16 billion. During the same quarter last year, the company posted $1.22 earnings per share. The firm’s quarterly revenue was down .7% compared to the same quarter last year. Verizon Communications has set its FY 2026 guidance at 4.990-5.040 EPS. As a group, equities analysts forecast that Verizon Communications Inc. will post 5.04 EPS for the current fiscal year.

Verizon Communications Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, November 2nd. Investors of record on Friday, October 9th will be paid a $0.7075 dividend. The ex-dividend date is Friday, October 9th. This represents a $2.83 annualized dividend and a yield of 6.4%. Verizon Communications’s dividend payout ratio is presently 73.70%.

Insider Buying and Selling

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 completion of the transaction, the chief executive officer directly owned 101,066 shares of the company’s stock, valued at approximately $4,338,763.38. This represents a 1.08% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through 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 valued at $420,145 in the last quarter. 0.03% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Verizon Communications

A number of institutional investors and hedge funds have recently added to or reduced their stakes in VZ. Perpetual Ltd grew its stake in Verizon Communications by 5.3% in the 3rd quarter. Perpetual Ltd now owns 66,731 shares of the cell phone carrier’s stock valued at $3,061,000 after buying an additional 3,362 shares in the last quarter. Wealth Enhancement Trust Services Inc. lifted its holdings in Verizon Communications by 5.4% during the 3rd quarter. Wealth Enhancement Trust Services Inc. now owns 20,224 shares of the cell phone carrier’s stock worth $928,000 after purchasing an additional 1,040 shares in the last quarter. Moody National Bank Trust Division lifted its holdings in Verizon Communications by 2.3% during the 3rd quarter. Moody National Bank Trust Division now owns 27,314 shares of the cell phone carrier’s stock worth $1,253,000 after purchasing an additional 621 shares in the last quarter. Adelphi Trust Co boosted its stake in Verizon Communications by 14.6% in the 3rd quarter. Adelphi Trust Co now owns 6,373 shares of the cell phone carrier’s stock worth $292,000 after purchasing an additional 811 shares during the period. Finally, Rockland Trust Co. boosted its stake in Verizon Communications by 2.6% in the 3rd quarter. Rockland Trust Co. now owns 492,341 shares of the cell phone carrier’s stock worth $22,584,000 after purchasing an additional 12,321 shares during the period. Institutional investors own 62.06% of the company’s stock.

Verizon Communications Company Profile

Verizon Communications Inc is a telecommunications company headquartered in New York City and listed on the New York Stock Exchange under the symbol VZ. The company was formed in 2000 through the merger of Bell Atlantic and GTE and has developed into one of the largest communications providers in the United States.

Verizon’s consumer business provides wireless voice and data services, smartphones and other connected devices, home internet, broadband, and related communications products.