Verizon Communications (NYSE:VZ) Shares Up 1.3% – Here’s Why

Verizon Communications Inc. (NYSE:VZ)’s share price shot up 1.3% during trading on Thursday. The stock traded as high as $46.55 and last traded at $46.3440. 19,473,273 shares traded hands during mid-day trading, a decline of 28% from the average daily volume of 26,933,293 shares. The stock had previously closed at $45.77.

Trending Headlines about Verizon Communications

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

• Positive Sentiment: Scotiabank lowered its Verizon price target to $50 from $51.50 but maintained a “sector outperform” rating, implying substantial potential upside from recent levels. Scotiabank Cuts Verizon Price Target
• Positive Sentiment: Verizon’s quarterly dividend remains $0.7075 per share, or $2.83 annualized, producing an approximately 6% yield. Its latest reported earnings also exceeded analyst expectations, although revenue was below consensus.
• Neutral Sentiment: Verizon’s next earnings report is expected on October 26. Investors will focus on wireless service revenue, subscriber additions, broadband growth and management’s response to emerging satellite-based competition. Verizon Earnings Preview
• Negative Sentiment: SpaceX agreed to acquire a nationwide portfolio of low-band 800 MHz spectrum from Grain Management. The deal could allow Starlink Mobile to combine satellite coverage with terrestrial wireless service, creating a more direct competitor to Verizon, AT&T and T-Mobile. SpaceX Network Plans Pressure Telecom Stocks
• Negative Sentiment: The FCC’s authorization for SpaceX to launch as many as 15,000 direct-to-phone satellites, combined with Elon Musk’s claims of sharply higher bandwidth, increased investor concerns that Verizon’s network advantage could weaken over time. Starlink Mobile Bandwidth Expansion
• Negative Sentiment: Scotiabank’s target reduction and broader analyst commentary point to higher disruption risk, while Verizon’s debt load and intense wireless competition remain additional concerns. CEO Kyle Malady’s small, pre-arranged sale of 1,100 shares is a minor negative signal but is unlikely to be the primary driver.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on the company. Weiss Ratings reissued a “buy (b)” rating on shares of Verizon Communications in a report on Wednesday, August 26th. Wells Fargo & Company upped their target price on Verizon Communications from $43.00 to $47.00 and gave the company an “equal weight” rating in a research note on Monday, July 27th. Moffett Nathanson reduced their target price on Verizon Communications from $56.00 to $49.00 and set a “neutral” rating for the company in a research report on Monday, July 20th. BNP Paribas Exane decreased their price target on shares of Verizon Communications from $46.00 to $44.00 and set a “neutral” rating on the stock in a research note on Tuesday, July 14th. Finally, TD Cowen lifted their price target on shares of Verizon Communications from $54.00 to $56.00 and gave the stock a “buy” rating in a research note on Monday, July 27th. Eight investment analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $50.80.

Verizon Communications Trading Down 10.0%

The stock has a market cap of $173.33 billion, a P/E ratio of 10.86, a PEG ratio of 1.57 and a beta of 0.26. 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 business’s 50 day simple moving average is $48.18 and its 200 day simple moving average is $47.07.

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

Verizon Communications Announces Dividend

The business also recently declared 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 of this dividend is Friday, October 9th. This represents a $2.83 annualized dividend and a yield of 6.8%. Verizon Communications’s payout ratio is currently 73.70%.

Insiders Place Their Bets

In other Verizon Communications news, CEO Kyle Malady sold 1,100 shares of the stock in a transaction on Tuesday, October 6th. The stock was sold at an average price of $45.75, for a total transaction of $50,325.00. Following the completion of the transaction, the chief executive officer directly owned 102,166 shares in the company, valued at $4,674,094.50. This represents a 1.07% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 7,700 shares of company stock valued at $372,922 in the last quarter. Corporate insiders own 0.03% of the company’s stock.

Institutional Investors Weigh In On Verizon Communications

Institutional investors and hedge funds have recently made changes to their positions in the company. USS Investment Management Ltd lifted its stake in Verizon Communications by 4.6% in the first quarter. USS Investment Management Ltd now owns 713,156 shares of the cell phone carrier’s stock valued at $35,790,000 after buying an additional 31,354 shares during the period. Cornerstone Capital Inc. increased its stake in shares of Verizon Communications by 8.6% in the 2nd quarter. Cornerstone Capital Inc. now owns 317,284 shares of the cell phone carrier’s stock valued at $13,434,000 after acquiring an additional 25,156 shares during the last quarter. University of Texas Texas AM Investment Management Co. increased its stake in shares of Verizon Communications by 127.0% in the 2nd quarter. University of Texas Texas AM Investment Management Co. now owns 184,170 shares of the cell phone carrier’s stock valued at $7,798,000 after acquiring an additional 103,046 shares during the last quarter. CPC Advisors LLC raised its position in shares of Verizon Communications by 76.4% in the 1st quarter. CPC Advisors LLC now owns 123,287 shares of the cell phone carrier’s stock valued at $6,189,000 after acquiring an additional 53,405 shares during the period. Finally, Lansforsakringar Fondforvaltning AB publ boosted its stake in Verizon Communications by 3.1% during the 1st quarter. Lansforsakringar Fondforvaltning AB publ now owns 2,450,129 shares of the cell phone carrier’s stock worth $122,996,000 after acquiring an additional 73,159 shares during the last quarter. Institutional investors and hedge funds own 62.06% of the company’s stock.

About Verizon Communications

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.