Verizon Communications (NYSE:VZ) Trading Down 2% – Here’s What Happened

Verizon Communications Inc. (NYSE:VZ)’s stock price dropped 2% during mid-day trading on Wednesday . The stock traded as low as $45.70 and last traded at $47.2060. 41,237,980 shares changed hands during mid-day trading, an increase of 41% from the average session volume of 29,299,283 shares. The stock had previously closed at $48.19.

Key Stories Impacting Verizon Communications

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

• Positive Sentiment: Verizon reported quarterly EPS of $1.30, exceeding the $1.27 consensus estimate, while earnings increased year over year. The company also raised its 2026 outlook, supporting renewed confidence in its operating momentum. Verizon After Earnings: Cheap Stock or Value Trap?
• Positive Sentiment: Wireless and broadband subscriber growth, including 1.1 million net subscribers reported for the fourth quarter of 2025, has helped ease concerns about competition and churn. Analysts have cited these trends, along with stronger cash flow and lower promotional intensity, when becoming more constructive on the stock. Verizon Is Still One of My Favourite Dividend Picks
• Positive Sentiment: Several firms raised their price targets, including Morgan Stanley to $52, TD Cowen to $56 and Scotiabank to $52.50. These revisions indicate that Wall Street sees additional upside after Verizon’s earnings update, although ratings remain mixed. TD Cowen Increases Verizon Price Target
• Positive Sentiment: A $1.5 billion investment by Bain Capital and Tillman Global Holdings will fund Eaton Fiber’s acquisition of Ripple Fiber and network expansion, supporting Verizon’s fiber broadband rollout without requiring Verizon to fund the entire investment directly. Verizon has also signed a reported $1 billion agreement with Google, adding to its longer-term connectivity and AI growth narrative. Bain Capital and Tillman Global Holdings Fiber Investment
• Neutral Sentiment: Verizon remains attractive to income investors because of its roughly 6% dividend yield, low forward earnings multiple relative to peers and substantial free-cash-flow coverage. The stock’s approximately 76% three-year total return, however, means investors are reassessing how much further value remains.
• Negative Sentiment: Revenue fell 0.7% year over year and missed expectations, raising the possibility that Verizon’s low valuation reflects slow top-line growth rather than an opportunity. Analysts also continue to flag wireless competition, execution risk and the cost of expanding fiber and AI-related services.

Analyst Ratings Changes

VZ has been the topic of a number of analyst reports. Royal Bank Of Canada increased their target price on shares of Verizon Communications from $46.00 to $47.00 and gave the stock a “sector perform” rating in a research report on Monday. Freedom Capital raised Verizon Communications to a “hold” rating in a report on Friday, June 12th. JPMorgan Chase & Co. upped 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. Dbs Bank cut Verizon Communications from a “moderate buy” rating to a “hold” rating in a research note on Tuesday, April 7th. Finally, Moffett Nathanson lowered their price target on Verizon Communications from $56.00 to $49.00 and set a “neutral” rating for the company in a research report on Monday, July 20th. Nine research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $50.84.

Verizon Communications Stock Performance

The company has a 50-day moving average of $45.40 and a 200 day moving average of $46.35. 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 firm has a market capitalization of $197.11 billion, a PE ratio of 12.29, a PEG ratio of 1.14 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 earnings per share for the quarter, beating analysts’ consensus estimates of $1.27 by $0.03. Verizon Communications had a return on equity of 19.48% and a net margin of 11.64%.The company had revenue of $34.25 billion for the quarter, compared to analysts’ expectations of $35.16 billion. During the same period last year, the firm posted $1.22 EPS. Verizon Communications’s revenue for the quarter was down .7% compared to the same quarter last year. Verizon Communications has set its FY 2026 guidance at 4.990-5.040 EPS. Equities research analysts predict that Verizon Communications Inc. will post 5.04 EPS for the current year.

Verizon Communications Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, August 3rd. Investors of record on Friday, July 10th will be given a dividend of $0.7075 per share. The ex-dividend date is Friday, July 10th. This represents a $2.83 annualized dividend and a dividend yield of 6.0%. Verizon Communications’s payout ratio is currently 73.70%.

Institutional Investors Weigh In On Verizon Communications

Institutional investors have recently modified their holdings of the stock. Keystone Financial Group lifted its position in shares of Verizon Communications by 13.2% during the 2nd quarter. Keystone Financial Group now owns 32,672 shares of the cell phone carrier’s stock valued at $1,383,000 after buying an additional 3,810 shares in the last quarter. Waterloo Capital L.P. grew its position in Verizon Communications by 2.3% in the 2nd quarter. Waterloo Capital L.P. now owns 61,363 shares of the cell phone carrier’s stock valued at $2,598,000 after acquiring an additional 1,408 shares during the last quarter. Gilliland Jeter Wealth Management LLC increased its holdings in Verizon Communications by 1.3% during the 2nd quarter. Gilliland Jeter Wealth Management LLC now owns 25,389 shares of the cell phone carrier’s stock worth $1,075,000 after purchasing an additional 336 shares during the period. Baker Avenue Asset Management LP raised its stake in Verizon Communications by 174.9% in the second quarter. Baker Avenue Asset Management LP now owns 60,121 shares of the cell phone carrier’s stock worth $2,546,000 after buying an additional 38,250 shares in the last quarter. Finally, Meramec Financial Planners LLC lifted its position in Verizon Communications by 1,945.6% during the second quarter. Meramec Financial Planners LLC now owns 1,166 shares of the cell phone carrier’s stock valued at $49,000 after acquiring an additional 1,109 shares during the last quarter. 62.06% of the stock is 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.