Verizon Communications (NYSE:VZ) Shares Gap Down After Analyst Downgrade

Shares of Verizon Communications Inc. (NYSE:VZ) gapped down before the market opened on Friday after Scotiabank lowered their price target on the stock from $51.50 to $50.00. The stock had previously closed at $46.35, but opened at $42.83. Scotiabank currently has a sector outperform rating on the stock. Verizon Communications shares last traded at $42.7410, with a volume of 17,155,604 shares changing hands.

Other equities analysts also recently issued reports about the stock. Freedom Capital raised shares of Verizon Communications to a “hold” rating in a research note on Friday, June 12th. Royal Bank Of Canada increased their price target on shares of Verizon Communications from $46.00 to $47.00 and gave the company a “sector perform” rating in a research note on Monday, July 27th. Morgan Stanley raised their price target on shares of Verizon Communications from $50.00 to $52.00 and gave the stock an “equal weight” rating in a report on Monday, July 27th. BNP Paribas Exane reduced 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 report on Tuesday, July 14th. Finally, TD Cowen upped their price objective on Verizon Communications from $54.00 to $56.00 and gave the company a “buy” rating in a report on Monday, July 27th. Eight equities research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $50.80.

Insiders Place Their Bets

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

Verizon Communications News Roundup

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

• Positive Sentiment: Scotiabank lowered its price target to $50 from $51.50 but maintained a “sector outperform” rating. The revised target still implies meaningful upside from Verizon’s recent trading level, suggesting the analyst views the SpaceX-related selloff as excessive. Scotiabank Verizon Price Target
• Positive Sentiment: Verizon, AT&T and T-Mobile formed a joint venture to expand coverage in rural areas and remote travel corridors. The initiative could improve network reach, emergency communications and satellite/direct-to-device capabilities over time. Verizon Joins Wireless Venture to Close U.S. Coverage Gaps
• Positive Sentiment: Verizon’s quarterly dividend of $0.7075 per share carries an annualized yield of approximately 6.2%, which may attract income-focused investors while the stock trades at a relatively modest valuation.
• Neutral Sentiment: Unusually heavy call-option activity suggests some traders are positioning for a rebound, with more than 131,000 calls purchased—roughly 149% above average volume—but options activity is not a fundamental catalyst.
• Negative Sentiment: SpaceX’s spectrum purchase is the dominant near-term risk. Reports indicate Verizon shares fell alongside other major carriers as investors reassessed the competitive threat from Starlink Mobile. SpaceX Spectrum Deal Pressures Verizon Shares
• Negative Sentiment: Verizon’s latest results showed earnings above expectations but revenue below consensus and down year over year, reinforcing concerns about limited top-line growth. The company also carries substantial debt, making sustained higher interest rates a concern.

Hedge Funds Weigh In On Verizon Communications

Hedge funds have recently made changes to their positions in the stock. Wealth Enhancement Trust Services Inc. lifted its stake in Verizon Communications by 5.4% during the third quarter. Wealth Enhancement Trust Services Inc. now owns 20,224 shares of the cell phone carrier’s stock worth $928,000 after purchasing an additional 1,040 shares in the last quarter. Moody National Bank Trust Division grew its stake in shares of Verizon Communications by 2.3% in the third quarter. Moody National Bank Trust Division now owns 27,314 shares of the cell phone carrier’s stock valued at $1,253,000 after buying an additional 621 shares in the last quarter. Adelphi Trust Co raised 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 valued at $292,000 after buying an additional 811 shares during the period. Rockland Trust Co. raised 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 valued at $22,584,000 after buying an additional 12,321 shares during the period. Finally, Greenwich Wealth Management LLC lifted its stake in Verizon Communications by 6.5% during the 2nd quarter. Greenwich Wealth Management LLC now owns 41,617 shares of the cell phone carrier’s stock worth $1,762,000 after acquiring an additional 2,544 shares in the last quarter. Hedge funds and other institutional investors own 62.06% of the company’s stock.

Verizon Communications Stock Down 6.6%

The business has a fifty day moving average of $48.29 and a 200 day moving average of $47.11. The company has a market capitalization of $179.90 billion, a PE ratio of 11.25, a PEG ratio of 1.55 and a beta of 0.26. The company has a current ratio of 0.60, a quick ratio of 0.57 and a debt-to-equity ratio of 1.36.

Verizon Communications (NYSE:VZ) last released its earnings results 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. The company had revenue of $34.25 billion during the quarter, compared to the consensus estimate of $35.16 billion. Verizon Communications had a return on equity of 19.48% and a net margin of 11.64%.Verizon Communications’s revenue was down .7% compared to the same quarter last year. During the same period in the previous year, the company posted $1.22 EPS. Verizon Communications has set its FY 2026 guidance at 4.990-5.040 EPS. Equities research analysts anticipate that Verizon Communications Inc. will post 5.04 EPS for the current year.

Verizon Communications Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, November 2nd. Investors of record on Friday, October 9th will be paid a dividend of $0.7075 per share. This represents a $2.83 annualized dividend and a yield of 6.5%. The ex-dividend date of this dividend is Friday, October 9th. Verizon Communications’s dividend payout ratio is presently 73.70%.

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.