Verizon Communications (NYSE:VZ) Shares Down 3.9% – What’s Next?

Verizon Communications Inc. (NYSE:VZ) fell 3.9% on Tuesday . The stock traded as low as $42.00 and last traded at $42.3710. 57,634,744 shares were traded during mid-day trading, an increase of 100% from the average session volume of 28,811,670 shares. The stock had previously closed at $44.10.

Key Headlines Impacting Verizon Communications

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

• Positive Sentiment: Verizon announced a new global connectivity joint venture with BT that will serve more than 3,000 enterprise customers across 180+ countries, targeting demand tied to cloud, AI, and compliance services. The deal could expand Verizon’s international reach and improve its enterprise growth profile. Verizon (VZ) Sees Severance Charge from Headcount Reductions
• Positive Sentiment: Wall Street expects Verizon’s next quarterly report to show a single-digit profit increase, suggesting the company may still be delivering modest earnings growth ahead of its July results. What to Expect From Verizon Communications’ Next Quarterly Earnings Report
• Neutral Sentiment: Analysts and media coverage continue to frame Verizon as a high-yield dividend stock with solid fundamentals, but this is more of a valuation reminder than a new catalyst. Pfizer vs Verizon Communications: Which High-Yielding Dividend Stock Is the Better Buy?
• Negative Sentiment: Verizon disclosed that ongoing transformation efforts will hit Q2 results with a $350 million to $450 million severance charge plus $200 million to $300 million in asset-rationalization costs, underscoring near-term margin pressure. Verizon (VZ) Sees Severance Charge from Headcount Reductions
• Negative Sentiment: New commentary on SpaceX’s satellite ambitions is adding to investor concern that wireless carriers like Verizon could face longer-term competitive threats, especially if satellite-to-phone service improves. SpaceX Threat Wipes Out $46B in Market Value From ‘Big Three’ Telecoms—And the Pain May Not Be Over

Analyst Upgrades and Downgrades

VZ has been the subject of several research reports. Wells Fargo & Company boosted their price target on Verizon Communications from $44.00 to $46.00 and gave the stock an “equal weight” rating in a research report on Tuesday, April 28th. Raymond James Financial reaffirmed an “outperform” rating and set a $56.00 target price on shares of Verizon Communications in a research note on Thursday, March 12th. Erste Group Bank reaffirmed a “hold” rating on shares of Verizon Communications in a report on Tuesday, May 5th. Dbs Bank cut shares of Verizon Communications from a “moderate buy” rating to a “hold” rating in a research report on Tuesday, April 7th. Finally, Scotiabank raised shares of Verizon Communications from a “sector perform” rating to a “sector outperform” rating and raised their price target for the stock from $50.25 to $54.50 in a research note on Monday, March 9th. One equities research 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 stock. Based on data from MarketBeat.com, Verizon Communications has an average rating of “Moderate Buy” and a consensus target price of $50.59.

Verizon Communications Stock Up 1.4%

The firm’s fifty day simple moving average is $46.71 and its two-hundred day simple moving average is $45.92. The company has a current ratio of 0.64, a quick ratio of 0.61 and a debt-to-equity ratio of 1.38. The company has a market capitalization of $177.77 billion, a price-to-earnings ratio of 10.38, a price-to-earnings-growth ratio of 1.03 and a beta of 0.24.

Verizon Communications (NYSE:VZ) last released its quarterly earnings results 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 for the quarter, compared to analyst estimates of $34.82 billion. During the same quarter in the previous year, the company earned $1.19 EPS. 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. Sell-side analysts anticipate that Verizon Communications Inc. will post 4.98 EPS for the current year.

Verizon Communications Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, August 3rd. Shareholders of record on Friday, July 10th will be given a $0.7075 dividend. The ex-dividend date is Friday, July 10th. This represents a $2.83 dividend on an annualized basis and a yield of 6.6%. Verizon Communications’s payout ratio is currently 69.02%.

Hedge Funds Weigh In On Verizon Communications

A number of hedge funds have recently modified their holdings of the business. Vanguard Group Inc. boosted its stake in Verizon Communications by 1.5% during the fourth quarter. Vanguard Group Inc. now owns 379,402,347 shares of the cell phone carrier’s stock worth $15,453,058,000 after buying an additional 5,497,598 shares during the period. State Street Corp lifted its holdings in shares of Verizon Communications by 3.5% in the 4th quarter. State Street Corp now owns 222,951,399 shares of the cell phone carrier’s stock worth $9,080,810,000 after acquiring an additional 7,461,335 shares during the last quarter. Charles Schwab Investment Management Inc. lifted its holdings in shares of Verizon Communications by 5.3% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 116,570,816 shares of the cell phone carrier’s stock worth $4,747,930,000 after acquiring an additional 5,851,715 shares during the last quarter. Geode Capital Management LLC boosted its position in shares of Verizon Communications by 0.9% during the 4th quarter. Geode Capital Management LLC now owns 102,632,509 shares of the cell phone carrier’s stock worth $4,168,080,000 after purchasing an additional 867,694 shares during the period. Finally, Bank of America Corp DE boosted its position in shares of 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 worth $3,117,471,000 after purchasing an additional 8,289,877 shares during the period. 62.06% of the stock is currently owned by hedge funds and other institutional investors.

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.