Verizon Communications (NYSE:VZ) Shares Down 5.1% – Should You Sell?

Verizon Communications Inc. (NYSE:VZ) fell 5.1% during mid-day trading on Monday . The company traded as low as $42.78 and last traded at $44.15. Approximately 53,787,628 shares traded hands during mid-day trading, an increase of 89% from the average session volume of 28,510,256 shares. The stock had previously closed at $46.54.

Verizon Communications News Roundup

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

• Positive Sentiment: Verizon’s new international joint venture with BT Group could expand its enterprise reach to more than 3,000 customers across 180+ countries, supporting growth in cloud, AI, and compliance services. Can Verizon’s Global Connectivity Expansion With BT Aid the Stock?
• Positive Sentiment: Verizon’s shares continue to look inexpensive on traditional valuation metrics, which may appeal to dividend and value investors looking for a defensive telecom name. Pfizer vs Verizon Communications: Which High-Yielding Dividend Stock Is the Better Buy?
• Neutral Sentiment: TCC, a Verizon authorized retailer, is expanding its store footprint, but the move is more about channel growth than a direct shift in Verizon’s core financial outlook. TCC Expands Retail Footprint Through Acquisition of More Than 30 Stores
• Negative Sentiment: Verizon disclosed it expects a $350 million to $450 million severance charge, plus $200 million to $300 million in asset-rationalization costs, due to ongoing headcount reductions and restructuring efforts. Verizon (VZ) Sees Severance Charge from Headcount Reductions
• Negative Sentiment: Recent coverage suggests SpaceX’s push into phone service is adding competitive pressure across the telecom sector, raising investor concerns about long-term wireless pricing and customer retention. A $1.6 Trillion Disruption: Why Wall Street Is Worried About a SpaceX Phone

Analysts Set New Price Targets

Several brokerages have recently commented on VZ. Freedom Capital raised shares of Verizon Communications to a “hold” rating in a report on Friday, June 12th. Citigroup increased their price target on Verizon Communications from $50.00 to $55.00 and gave the stock a “buy” rating in a research report on Friday, March 20th. Morgan Stanley raised their price objective on Verizon Communications from $49.00 to $50.00 and gave the stock an “equal weight” rating in a research note on Tuesday, April 28th. Erste Group Bank reaffirmed a “hold” rating on shares of Verizon Communications in a report on Tuesday, May 5th. Finally, Wells Fargo & Company upped their target price on Verizon Communications from $44.00 to $46.00 and gave the company an “equal weight” rating in a research report on Tuesday, April 28th. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and twelve have issued a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $50.59.

Verizon Communications Trading Down 0.9%

The business has a fifty day simple moving average of $46.80 and a 200-day simple moving average of $45.91. The company has a debt-to-equity ratio of 1.38, a quick ratio of 0.61 and a current ratio of 0.64. The firm has a market cap of $175.21 billion, a price-to-earnings ratio of 10.23, a PEG ratio of 1.07 and a beta of 0.24.

Verizon Communications (NYSE:VZ) last announced its quarterly earnings results on Monday, April 27th. The cell phone carrier reported $1.28 EPS for the quarter, beating analysts’ consensus estimates of $1.21 by $0.07. The firm had revenue of $34.44 billion for the quarter, compared to analyst estimates of $34.82 billion. Verizon Communications had a return on equity of 19.25% and a net margin of 12.46%.The business’s revenue for the quarter was up 2.7% on a year-over-year basis. During the same period last year, the firm posted $1.19 earnings per share. Verizon Communications has set its FY 2026 guidance at 4.950-4.990 EPS. As a group, equities analysts forecast that Verizon Communications Inc. will post 4.98 earnings per share for the current fiscal year.

Verizon Communications Dividend Announcement

The firm also recently announced 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 yield of 6.7%. Verizon Communications’s dividend payout ratio (DPR) is currently 69.02%.

Hedge Funds Weigh In On Verizon Communications

Large investors have recently modified their holdings of the business. Adelphi Trust Co increased its position in shares of Verizon Communications by 37.0% during the second quarter. Adelphi Trust Co now owns 5,562 shares of the cell phone carrier’s stock worth $235,000 after buying an additional 1,503 shares during the period. Ballast Advisors LLC acquired a new position in shares of Verizon Communications in the 1st quarter valued at about $65,000. MTM Financial Group LLC bought a new stake in shares of Verizon Communications during the 1st quarter valued at about $235,000. Sapient Capital LLC grew its stake in Verizon Communications by 29.2% during the first quarter. Sapient Capital LLC now owns 18,584 shares of the cell phone carrier’s stock worth $933,000 after purchasing an additional 4,198 shares during the period. Finally, Southern Financial Group LLC increased its holdings in Verizon Communications by 2.1% in the first quarter. Southern Financial Group LLC now owns 19,321 shares of the cell phone carrier’s stock worth $970,000 after purchasing an additional 405 shares in the last quarter. Institutional investors own 62.06% of the company’s stock.

About Verizon Communications

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.