Verizon Communications (NYSE:VZ) Trading Down 5.1% – Here’s Why

Verizon Communications Inc. (NYSE:VZ) shares fell 5.1% during trading on Monday . The stock traded as low as $42.78 and last traded at $44.15. Approximately 53,787,628 shares changed hands during trading, an increase of 89% from the average session volume of 28,510,256 shares. The stock had previously closed at $46.54.

Verizon Communications News Summary

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

• Positive Sentiment: Verizon and BT Group agreed to form a 50:50 joint venture combining their international enterprise operations, which could improve scale and competitiveness in serving multinational customers. Reuters article: BT, Verizon announce joint venture for international enterprise units
• Positive Sentiment: The BT deal could help Verizon streamline its overseas business and focus more on core wireless and domestic telecom operations over time. Globe Newswire article: BT Group and Verizon to form joint venture
• Neutral Sentiment: Broad market and index-related headlines are adding noise to trading, including Verizon’s removal from the Dow and a wider rotation into other large-cap stocks. Article: Dow Jones S&P Indices replaces Verizon with Alphabet
• Negative Sentiment: Verizon reportedly reclassified assets and expects an estimated Q2 loss, which signals near-term earnings pressure and raises concern about one-time charges hitting profitability. Seeking Alpha article: Verizon reclassifies assets, expects estimated Q2 loss
• Negative Sentiment: Investors are also worried about rising competition from SpaceX/Starlink and cable rivals, which could threaten Verizon’s wireless growth and pricing power. Yahoo Finance article: Verizon falls 7%, AT&T hits 52-week low as SpaceX and cable rivals converge
• Negative Sentiment: Reports that SpaceX may enter the mobile phone market are pressuring Verizon and other major carriers, reinforcing fears of tougher competition ahead. Barron’s article: SpaceX Might Bring Mobile Phone to Market

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on the company. Raymond James Financial reissued an “outperform” rating and issued a $56.00 price objective on shares of Verizon Communications in a report on Thursday, March 12th. Oppenheimer lifted their target price on shares of Verizon Communications from $50.00 to $56.00 and gave the company an “outperform” rating in a report on Wednesday, March 11th. Wells Fargo & Company increased their price target on shares of Verizon Communications from $44.00 to $46.00 and gave the stock an “equal weight” rating in a research note on Tuesday, April 28th. Barclays raised their price objective on shares of Verizon Communications from $43.00 to $47.00 and gave the stock an “equal weight” rating in a research report on Tuesday, March 31st. Finally, Morgan Stanley lifted their price objective on shares of Verizon Communications from $49.00 to $50.00 and gave the company an “equal weight” rating in a research note on Tuesday, April 28th. One analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and twelve have issued a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $50.59.

Verizon Communications Price Performance

The company has a quick ratio of 0.61, a current ratio of 0.64 and a debt-to-equity ratio of 1.38. The stock has a fifty day moving average of $46.93 and a two-hundred day moving average of $45.86. The stock has a market cap of $184.35 billion, a price-to-earnings ratio of 10.77, a price-to-earnings-growth ratio of 1.13 and a beta of 0.24.

Verizon Communications (NYSE:VZ) last announced its quarterly earnings data on Monday, April 27th. The cell phone carrier reported $1.28 EPS 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 firm had revenue of $34.44 billion during the quarter, compared to analysts’ expectations of $34.82 billion. During the same quarter last year, the business earned $1.19 earnings per share. The business’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, equities research analysts anticipate that Verizon Communications Inc. will post 4.98 earnings per share for the current year.

Verizon Communications Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, August 3rd. Investors of record on Friday, July 10th will be issued a dividend of $0.7075 per share. The ex-dividend date of this dividend is Friday, July 10th. This represents a $2.83 annualized dividend and a yield of 6.4%. Verizon Communications’s payout ratio is currently 69.02%.

Institutional Trading of Verizon Communications

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

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.