Verizon Communications (NYSE:VZ) Stock Price Up 1.4% – Here’s Why

Verizon Communications Inc. (NYSE:VZ) shares were up 1.4% during trading on Monday . The stock traded as high as $51.49 and last traded at $51.3160. 17,861,148 shares changed hands during mid-day trading, a decline of 35% from the average session volume of 27,404,406 shares. The stock had previously closed at $50.61.

Key Verizon Communications News

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

• Positive Sentiment: 6G and AI-related initiatives provide a growth narrative. Verizon is expanding its 6G industry partnership network, with nine technology companies joining its forum. Trials involving network sensing, drones, vehicle tracking, smart glasses and real-time sports data could strengthen Verizon’s positioning in future connectivity and edge-computing markets. Verizon 6G, AI and smart glasses article
• Positive Sentiment: Verizon remains attractive to income-focused investors. The company’s long record of dividend increases and recurring wireless cash flows support its appeal as a high-yield, relatively defensive holding. That income profile may be helping sustain demand for the stock near its annual peak. High-yield dividend stocks article
• Neutral Sentiment: Advertising litigation has been resolved. Verizon Wireless and T-Mobile settled lawsuits alleging misleading claims about savings for customers switching carriers. The agreement removes a legal overhang, although it does not appear to materially change Verizon’s operating outlook. Verizon and T-Mobile advertising lawsuits article
• Negative Sentiment: Revenue timing is a key risk. Trefis argues that Verizon’s stock recovery has outpaced the arrival of the revenue expected to support it. Investors may therefore question whether the turnaround can justify the valuation while the shares trade near their one-year high. Verizon revenue outlook article

Wall Street Analyst Weigh In

A number of brokerages have issued reports on VZ. Wells Fargo & Company boosted their price target on Verizon Communications from $43.00 to $47.00 and gave the stock an “equal weight” rating in a research report on Monday, July 27th. 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 report on Monday, July 27th. Moffett Nathanson lowered their target price on shares of Verizon Communications from $56.00 to $49.00 and set a “neutral” rating on the stock in a research note on Monday, July 20th. Scotiabank upped their price target on shares of Verizon Communications from $51.50 to $52.50 and gave the stock a “sector outperform” rating in a research note on Monday, July 27th. Finally, Freedom Capital upgraded shares of Verizon Communications to a “hold” rating in a research note on Friday, June 12th. Eight research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $50.97.

Verizon Communications Trading Up 1.4%

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 has a fifty day moving average of $47.07 and a 200-day moving average of $47.52. The stock has a market capitalization of $213.21 billion, a price-to-earnings ratio of 13.36, a price-to-earnings-growth ratio of 1.72 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 for the quarter, beating the consensus estimate of $1.27 by $0.03. Verizon Communications had a net margin of 11.64% and a return on equity of 19.48%. The company had revenue of $34.25 billion during the quarter, compared to analyst estimates of $35.16 billion. During the same quarter last year, the firm posted $1.22 EPS. The business’s revenue for the quarter 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, equities analysts anticipate that Verizon Communications Inc. will post 5.03 earnings per share for the current fiscal year.

Verizon Communications Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, November 2nd. Shareholders of record on Friday, October 9th will be issued a $0.7075 dividend. The ex-dividend date of this dividend is Friday, October 9th. This represents a $2.83 annualized dividend and a dividend yield of 5.5%. Verizon Communications’s dividend payout ratio is currently 73.70%.

Insider Buying and Selling at Verizon Communications

In related news, CEO Kyle Malady sold 1,100 shares of Verizon Communications stock in a transaction on Tuesday, September 8th. The stock was sold at an average price of $49.98, for a total value of $54,978.00. Following the transaction, the chief executive officer directly owned 106,566 shares in the company, valued at $5,326,168.68. The trade was a 1.02% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 4,400 shares of company stock worth $219,142. Company insiders own 0.03% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. Gill Capital Partners LLC boosted its stake in Verizon Communications by 74.6% in the 2nd quarter. Gill Capital Partners LLC now owns 620 shares of the cell phone carrier’s stock worth $26,000 after purchasing an additional 265 shares during the period. Robinswood Financial LLC purchased a new stake in shares of Verizon Communications in the first quarter valued at $27,000. Lam Group Inc. purchased a new stake in shares of Verizon Communications in the first quarter valued at $28,000. Sarver Vrooman Wealth Advisors boosted its position in shares of Verizon Communications by 173.0% in the fourth quarter. Sarver Vrooman Wealth Advisors now owns 707 shares of the cell phone carrier’s stock worth $29,000 after buying an additional 448 shares during the period. Finally, Bare Financial Services Inc boosted its position in shares of Verizon Communications by 37.4% in the second quarter. Bare Financial Services Inc now owns 841 shares of the cell phone carrier’s stock worth $36,000 after buying an additional 229 shares during the period. 62.06% of the stock is currently owned by institutional investors and hedge funds.

About Verizon Communications

Verizon Communications Inc is a telecommunications company that provides wireless communications, broadband, and related technology services. Its offerings include mobile voice and data plans, 5G connectivity, fixed wireless access, fiber-optic internet through Verizon Fios, home services, and connected-device solutions.

Through Verizon Business, the company serves enterprises, government agencies, and other organizations with communications networks, managed connectivity, cybersecurity, cloud and edge-computing services, unified communications, and Internet of Things solutions.