Verizon Communications (NYSE:VZ) Stock Price Down 10% Following Analyst Downgrade

Verizon Communications Inc. (NYSE:VZ)’s share price was down 10% on Friday after Scotiabank lowered their price target on the stock from $51.50 to $50.00. Scotiabank currently has a sector outperform rating on the stock. Verizon Communications traded as low as $40.81 and last traded at $41.7180. Approximately 94,766,537 shares traded hands during mid-day trading, an increase of 247% from the average daily volume of 27,303,645 shares. The stock had previously closed at $46.35.

A number of other research firms have also weighed in on VZ. BNP Paribas Exane lowered their target price on shares of Verizon Communications from $46.00 to $44.00 and set a “neutral” rating on the stock in a report on Tuesday, July 14th. Weiss Ratings reissued a “buy (b)” rating on shares of Verizon Communications in a report on Wednesday, August 26th. Barclays increased their price objective on Verizon Communications from $45.00 to $46.00 and gave the stock an “equal weight” rating in a research note on Monday, July 27th. Moffett Nathanson dropped their target price on Verizon Communications from $56.00 to $49.00 and set a “neutral” rating on the stock in a report on Monday, July 20th. Finally, TD Cowen lifted their target price on Verizon Communications from $54.00 to $56.00 and gave the company a “buy” rating in a research report on Monday, July 27th. Eight analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $50.80.

Insider Transactions at Verizon Communications

In other Verizon Communications news, CEO Kyle Malady sold 1,100 shares of the stock in a transaction dated Tuesday, October 6th. The shares were sold at an average price of $45.75, for a total value of $50,325.00. Following the completion of the sale, the chief executive officer owned 102,166 shares in the company, valued at approximately $4,674,094.50. This trade represents a 1.07% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 7,700 shares of company stock valued at $372,922. Corporate insiders own 0.03% of the company’s stock.

Trending Headlines about Verizon Communications

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

• Positive Sentiment: Scotiabank lowered its price target for Verizon from $51.50 to $50.00 but maintained a “sector outperform” rating. The revised target still implies meaningful potential upside from current levels. Scotiabank Verizon Price Target Update
• Positive Sentiment: Verizon’s quarterly dividend of $0.7075 per share remains scheduled for payment on November 2, representing an annualized payout of approximately $2.83 per share. The company’s high dividend yield may attract income-focused investors during the selloff.
• Neutral Sentiment: Investors are also looking ahead to Verizon’s October 26 earnings report. The company’s latest quarter showed earnings above expectations but revenue below consensus, making wireless customer additions, service revenue and broadband growth important upcoming indicators.
• Neutral Sentiment: Verizon is preparing network equipment, generators and emergency-response teams ahead of Tropical Storm Isaias. The effort supports network reliability and public-safety customers, although storm-related deployment and repair costs could temporarily affect expenses. Verizon Readies Network for Tropical Storm Isaias
• Negative Sentiment: SpaceX agreed to acquire a nationwide portfolio of low-band 800 MHz spectrum from Grain Management, subject to regulatory approval. The transaction would give Starlink Mobile a stronger terrestrial component and create a more direct rival to Verizon’s wireless network. SpaceX Network Plans Pressure Telecom Stocks
• Negative Sentiment: Investors fear a hybrid satellite-and-cellular Starlink network could pressure Verizon’s pricing, customer growth and network differentiation. Speculation that SpaceX could eventually develop a Starlink-compatible phone increases the perceived threat to carriers and handset makers. SpaceX Starlink Mobile Competition
• Negative Sentiment: CEO Kyle Malady sold 1,100 Verizon shares under a pre-arranged Rule 10b5-1 plan. The transaction reduced his position by roughly 1%, so it is a limited signal compared with the broader SpaceX-related selling pressure.

Institutional Trading of Verizon Communications

A number of institutional investors and hedge funds have recently modified their holdings of VZ. Wealth Enhancement Trust Services Inc. grew its stake in Verizon Communications by 5.4% in the 3rd quarter. Wealth Enhancement Trust Services Inc. now owns 20,224 shares of the cell phone carrier’s stock valued at $928,000 after purchasing an additional 1,040 shares during the period. Moody National Bank Trust Division raised its stake in shares of Verizon Communications by 2.3% during the 3rd quarter. Moody National Bank Trust Division now owns 27,314 shares of the cell phone carrier’s stock worth $1,253,000 after purchasing an additional 621 shares during the period. Adelphi Trust Co boosted its holdings in shares of Verizon Communications by 14.6% in the 3rd quarter. Adelphi Trust Co now owns 6,373 shares of the cell phone carrier’s stock worth $292,000 after buying an additional 811 shares during the last quarter. Rockland Trust Co. boosted its holdings in shares of Verizon Communications by 2.6% in the 3rd quarter. Rockland Trust Co. now owns 492,341 shares of the cell phone carrier’s stock worth $22,584,000 after buying an additional 12,321 shares during the last quarter. Finally, Greenwich Wealth Management LLC grew its position in Verizon Communications by 6.5% during the second quarter. Greenwich Wealth Management LLC now owns 41,617 shares of the cell phone carrier’s stock valued at $1,762,000 after buying an additional 2,544 shares during the period. 62.06% of the stock is owned by hedge funds and other institutional investors.

Verizon Communications Stock Performance

The company’s 50-day moving average is $48.29 and its two-hundred day moving average is $47.11. The company has a quick ratio of 0.57, a current ratio of 0.60 and a debt-to-equity ratio of 1.36. The company has a market cap of $173.33 billion, a P/E ratio of 10.86, a price-to-earnings-growth ratio of 1.55 and a beta of 0.26.

Verizon Communications (NYSE:VZ) last announced its quarterly earnings data on Friday, July 24th. The cell phone carrier reported $1.30 EPS for the quarter, topping the consensus estimate of $1.27 by $0.03. The business had revenue of $34.25 billion for the quarter, compared to analyst estimates of $35.16 billion. Verizon Communications had a net margin of 11.64% and a return on equity of 19.48%. The company’s revenue for the quarter was down .7% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.22 earnings per share. Verizon Communications has set its FY 2026 guidance at 4.990-5.040 EPS. Equities analysts predict that Verizon Communications Inc. will post 5.04 EPS for the current 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 issued a $0.7075 dividend. This represents a $2.83 dividend on an annualized basis and a dividend yield of 6.8%. The ex-dividend date of this dividend is Friday, October 9th. Verizon Communications’s payout ratio is 73.70%.

Verizon Communications Company Profile

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.