Verizon Communications (NYSE:VZ) Trading Down 2.1% – Time to Sell?

Verizon Communications Inc. (NYSE:VZ)’s stock price fell 2.1% during mid-day trading on Monday . The company traded as low as $47.02 and last traded at $47.1140. 24,125,475 shares were traded during mid-day trading, a decline of 14% from the average session volume of 28,211,002 shares. The stock had previously closed at $48.11.

Key Headlines Impacting Verizon Communications

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

• Positive Sentiment: Verizon unveiled simpler wireless plans, eliminated activation and upgrade fees, and launched a new loyalty program that could improve customer retention and reduce churn. Reuters article on Verizon simpler plans and fees
• Positive Sentiment: Verizon completed the expiration and final results process for its note exchange and tender offers, a debt-management step that may be viewed as supportive of balance-sheet flexibility. Verizon private exchange offers result article
• Neutral Sentiment: Analysts and market commentary said Verizon may be undervalued based on its share price versus earnings and cash-generating telecom operations, but this was more valuation commentary than a fresh catalyst. Yahoo Finance undervalued article
• Negative Sentiment: Despite the new customer initiatives, Verizon’s stock has lagged the broader market in recent trading, with investors possibly worried that heavier competition and fee cuts could pressure profitability. Yahoo Finance falls more steeply article

Analysts Set New Price Targets

A number of research firms have commented on VZ. Scotiabank upgraded Verizon Communications from a “sector perform” rating to a “sector outperform” rating and lifted their target price for the company from $50.25 to $54.50 in a research report on Monday, March 9th. Morgan Stanley lifted their target price on Verizon Communications from $49.00 to $50.00 and gave the company an “equal weight” rating in a research report on Tuesday, April 28th. JPMorgan Chase & Co. lifted their target price on Verizon Communications from $49.00 to $52.00 and gave the company a “neutral” rating in a research report on Thursday, April 30th. Raymond James Financial restated an “outperform” rating and issued a $56.00 target price on shares of Verizon Communications in a research report on Thursday, March 12th. Finally, Freedom Capital upgraded Verizon Communications to a “hold” rating in a research report on Friday, June 12th. One investment analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and twelve have assigned a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $50.59.

Verizon Communications Trading Down 1.9%

The company has a 50-day moving average price of $47.03 and a 200-day moving average price of $45.63. The firm has a market capitalization of $191.50 billion, a price-to-earnings ratio of 11.19, a PEG ratio of 1.14 and a beta of 0.24. The company has a debt-to-equity ratio of 1.38, a quick ratio of 0.61 and a current ratio of 0.64.

Verizon Communications (NYSE:VZ) last released its quarterly earnings data on Monday, April 27th. The cell phone carrier reported $1.28 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.21 by $0.07. The business had revenue of $34.44 billion during the quarter, compared to analysts’ expectations of $34.82 billion. Verizon Communications had a return on equity of 19.25% and a net margin of 12.46%.The business’s quarterly revenue was up 2.7% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.19 EPS. Verizon Communications has set its FY 2026 guidance at 4.950-4.990 EPS. As a group, research analysts forecast that Verizon Communications Inc. will post 4.97 EPS for the current fiscal year.

Verizon Communications Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, August 3rd. Stockholders of record on Friday, July 10th will be given a dividend of $0.7075 per share. This represents a $2.83 annualized dividend and a dividend yield of 6.2%. The ex-dividend date of this dividend is Friday, July 10th. Verizon Communications’s dividend payout ratio is currently 69.02%.

Institutional Trading of Verizon Communications

A number of large investors have recently made changes to their positions in VZ. Norges Bank purchased a new stake in Verizon Communications during the 4th quarter valued at approximately $2,357,158,000. Bank of America Corp DE raised its stake in Verizon Communications by 15.4% during the 1st quarter. Bank of America Corp DE now owns 62,101,021 shares of the cell phone carrier’s stock valued at $3,117,471,000 after acquiring an additional 8,289,877 shares during the last quarter. Bank of New York Mellon Corp raised its stake in Verizon Communications by 31.2% during the 4th quarter. Bank of New York Mellon Corp now owns 31,584,162 shares of the cell phone carrier’s stock valued at $1,286,423,000 after acquiring an additional 7,509,055 shares during the last quarter. State Street Corp raised its stake in Verizon Communications by 3.5% during the 4th quarter. State Street Corp now owns 222,951,399 shares of the cell phone carrier’s stock valued at $9,080,810,000 after acquiring an additional 7,461,335 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. raised its stake in Verizon Communications by 5.3% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 116,570,816 shares of the cell phone carrier’s stock valued at $4,747,930,000 after acquiring an additional 5,851,715 shares during the last quarter. 62.06% of the stock is owned by institutional investors and hedge funds.

Verizon Communications Company Profile

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.