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

Verizon Communications Inc. (NYSE:VZ) was down 1.5% during trading on Monday . The company traded as low as $39.51 and last traded at $39.8410. Approximately 31,230,474 shares changed hands during mid-day trading, a decline of 3% from the average daily volume of 32,134,861 shares. The stock had previously closed at $40.46.

Key Verizon Communications News

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

• Positive Sentiment: FCC revises phone-unlocking rule, easing a major fraud-related cost burden for Verizon. Regulators changed a long-standing requirement that forced Verizon to automatically unlock phones 60 days after activation — the company has said the old rule cost it “hundreds of millions” annually from fraud, so the revision should materially reduce losses and improve cash flow expectations. FCC revises Verizon phone unlocking rules after significant fraud issues Verizon gets relief as FCC revises phone unlocking rule
• Positive Sentiment: Analyst sentiment appears to be improving on steadier growth and strong cash flow, with several write-ups noting undervaluation and a consensus price target above current levels; that can support buy-side interest and dividend confidence. Analyst Sentiment on Verizon Communications (VZ) Improves Analyst sentiment on Verizon Communications (VZ) improves (Yahoo)
• Positive Sentiment: Unusually large volumes of call option purchases were reported, which can indicate speculative or institutional bullish positioning and may support short-term upside if follow-through buying occurs. Stock Traders Buy Large Volume of Call Options on Verizon Communications (NYSE:VZ)
• Neutral Sentiment: Verizon continues to be featured in dividend-focused lists and screens (high yield / Dogs of the Dow-style), reinforcing income investor interest but not directly changing near-term fundamentals. These mentions help support baseline demand from yield-seeking holders. 3 Dividend Stocks With High Yields and a Triple-Digit Upside Potential The Dogs of the Dow: 10 Downtrodden Dividends
• Negative Sentiment: Scotiabank lowered its price target for VZ (from $51 to $48) and kept a Sector Perform rating, citing intensified wireless promotions — a reminder that competitive pricing pressure could weigh on revenue growth and margin outlook. That analyst action can contribute to downward price pressure among investors focused on near-term earnings. Scotiabank Trims Verizon (VZ) Price Target

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on VZ. Scotiabank upped their target price on shares of Verizon Communications from $50.50 to $51.00 and gave the stock a “sector perform” rating in a report on Thursday, October 30th. Weiss Ratings lowered Verizon Communications from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Friday, October 24th. BNP Paribas Exane cut shares of Verizon Communications from an “outperform” rating to a “neutral” rating and set a $44.00 price objective on the stock. in a research note on Tuesday, October 21st. TD Cowen decreased their target price on Verizon Communications from $56.00 to $51.00 and set a “buy” rating for the company in a research report on Thursday, October 30th. Finally, Wall Street Zen cut shares of Verizon Communications from a “buy” rating to a “hold” rating in a research report on Friday, September 26th. Two 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 company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $47.47.

Verizon Communications Price Performance

The firm has a fifty day moving average of $40.55 and a two-hundred day moving average of $41.86. The stock has a market capitalization of $167.99 billion, a P/E ratio of 8.51, a P/E/G ratio of 3.86 and a beta of 0.34. The company has a debt-to-equity ratio of 1.19, a current ratio of 0.74 and a quick ratio of 0.69.

Verizon Communications (NYSE:VZ) last released its quarterly 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 during the quarter, compared to analyst estimates of $34.19 billion. Verizon Communications had a return on equity of 19.31% and a net margin of 14.43%.The business’s revenue for the quarter was up 1.5% compared to the same quarter last year. During the same period in the previous year, the company posted $1.19 EPS. On average, analysts predict that Verizon Communications Inc. will post 4.69 EPS for the current year.

Verizon Communications Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, February 2nd. Investors of record on Monday, January 12th will be paid a $0.69 dividend. The ex-dividend date is Monday, January 12th. This represents a $2.76 dividend on an annualized basis and a yield of 6.9%. Verizon Communications’s dividend payout ratio (DPR) is 58.97%.

Institutional Trading of Verizon Communications

Several institutional investors and hedge funds have recently bought and sold shares of the business. Bulwark Capital Corp purchased a new stake in Verizon Communications during the second quarter worth about $25,000. Advantage Trust Co grew its stake in shares of Verizon Communications by 549.5% during the second quarter. Advantage Trust Co now owns 591 shares of the cell phone carrier’s stock worth $26,000 after purchasing an additional 500 shares in the last quarter. TruNorth Capital Management LLC increased its holdings in shares of Verizon Communications by 95.3% in the 3rd quarter. TruNorth Capital Management LLC now owns 625 shares of the cell phone carrier’s stock valued at $27,000 after acquiring an additional 305 shares during the last quarter. Foster Dykema Cabot & Partners LLC purchased a new position in shares of Verizon Communications in the 3rd quarter valued at $29,000. Finally, Global Wealth Strategies & Associates grew its holdings in shares of Verizon Communications by 739.5% during the third quarter. Global Wealth Strategies & Associates now owns 680 shares of the cell phone carrier’s stock worth $30,000 after purchasing an additional 599 shares during the last quarter. 62.06% of the stock is currently owned by institutional investors and hedge funds.

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.