Verizon Communications (NYSE:VZ) Trading 1.4% Higher – Here’s Why

Verizon Communications Inc. (NYSE:VZ) shot up 1.4% during trading on Monday . The company traded as high as $51.49 and last traded at $51.3160. Approximately 17,861,148 shares changed hands during trading, a decline of 35% from the average daily volume of 27,404,406 shares. The stock had previously closed at $50.61.

Verizon Communications News Summary

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

• Positive Sentiment: 6G and AI-related initiatives provide a growth narrative. Verizon is expanding its 6G industry partnership network, with nine technology companies joining its forum. Trials involving network sensing, drones, vehicle tracking, smart glasses and real-time sports data could strengthen Verizon’s positioning in future connectivity and edge-computing markets. Verizon 6G, AI and smart glasses article
• Positive Sentiment: Verizon remains attractive to income-focused investors. The company’s long record of dividend increases and recurring wireless cash flows support its appeal as a high-yield, relatively defensive holding. That income profile may be helping sustain demand for the stock near its annual peak. High-yield dividend stocks article
• Neutral Sentiment: Advertising litigation has been resolved. Verizon Wireless and T-Mobile settled lawsuits alleging misleading claims about savings for customers switching carriers. The agreement removes a legal overhang, although it does not appear to materially change Verizon’s operating outlook. Verizon and T-Mobile advertising lawsuits article
• Negative Sentiment: Revenue timing is a key risk. Trefis argues that Verizon’s stock recovery has outpaced the arrival of the revenue expected to support it. Investors may therefore question whether the turnaround can justify the valuation while the shares trade near their one-year high. Verizon revenue outlook article

Analysts Set New Price Targets

A number of equities analysts have recently weighed in on the company. Weiss Ratings reiterated a “buy (b)” rating on shares of Verizon Communications in a report on Wednesday, August 26th. Royal Bank Of Canada raised their price target on shares of Verizon Communications from $46.00 to $47.00 and gave the stock a “sector perform” rating in a report on Monday, July 27th. Freedom Capital raised shares of Verizon Communications to a “hold” rating in a research report on Friday, June 12th. Morgan Stanley upped their price objective on shares of Verizon Communications from $50.00 to $52.00 and gave the company an “equal weight” rating in a research note on Monday, July 27th. Finally, Wells Fargo & Company increased their target price on shares of Verizon Communications from $43.00 to $47.00 and gave the stock an “equal weight” rating in a research report on Monday, July 27th. Eight research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $50.97.

Verizon Communications Stock Performance

The company has a current ratio of 0.60, a quick ratio of 0.57 and a debt-to-equity ratio of 1.36. The firm has a 50-day simple moving average of $47.07 and a two-hundred day simple moving average of $47.52. The company has a market capitalization of $213.21 billion, a price-to-earnings ratio of 13.36, a price-to-earnings-growth ratio of 1.72 and a beta of 0.26.

Verizon Communications (NYSE:VZ) last posted its quarterly earnings results on Friday, July 24th. The cell phone carrier reported $1.30 earnings per share for the quarter, topping analysts’ consensus estimates 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%.The business’s quarterly revenue was down .7% on a year-over-year basis. During the same period last year, the business earned $1.22 EPS. Verizon Communications has set its FY 2026 guidance at 4.990-5.040 EPS. As a group, sell-side analysts forecast that Verizon Communications Inc. will post 5.03 earnings per share for the current fiscal year.

Verizon Communications Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, November 2nd. Investors of record on Friday, October 9th will be given a dividend of $0.7075 per share. This represents a $2.83 annualized dividend and a yield of 5.5%. The ex-dividend date of this dividend is Friday, October 9th. Verizon Communications’s dividend payout ratio (DPR) is presently 73.70%.

Insider Transactions at Verizon Communications

In other Verizon Communications news, CEO Kyle Malady sold 1,100 shares of the business’s stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $49.98, for a total value of $54,978.00. Following the completion of the sale, the chief executive officer directly owned 106,566 shares of the company’s stock, valued at $5,326,168.68. The trade was a 1.02% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 4,400 shares of company stock valued at $219,142 in the last ninety days. 0.03% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Sequoia Financial Advisors LLC boosted its holdings in Verizon Communications by 0.4% in the second quarter. Sequoia Financial Advisors LLC now owns 338,532 shares of the cell phone carrier’s stock worth $14,333,000 after purchasing an additional 1,479 shares in the last quarter. MCF Advisors LLC raised its holdings in Verizon Communications by 3.7% during the second quarter. MCF Advisors LLC now owns 25,656 shares of the cell phone carrier’s stock valued at $1,086,000 after buying an additional 913 shares in the last quarter. Gemmer Asset Management LLC acquired a new stake in shares of Verizon Communications in the second quarter worth about $219,000. National Pension Service lifted its position in shares of Verizon Communications by 1.2% in the second quarter. National Pension Service now owns 10,714,909 shares of the cell phone carrier’s stock worth $453,669,000 after buying an additional 129,613 shares during the last quarter. Finally, Cidel Asset Management Inc. lifted its position in shares of Verizon Communications by 4.6% in the second quarter. Cidel Asset Management Inc. now owns 83,905 shares of the cell phone carrier’s stock worth $3,553,000 after buying an additional 3,680 shares during the last quarter. Institutional investors own 62.06% of the company’s stock.

About Verizon Communications

Verizon Communications Inc is a telecommunications company that provides wireless communications, broadband, and related technology services. Its offerings include mobile voice and data plans, 5G connectivity, fixed wireless access, fiber-optic internet through Verizon Fios, home services, and connected-device solutions.

Through Verizon Business, the company serves enterprises, government agencies, and other organizations with communications networks, managed connectivity, cybersecurity, cloud and edge-computing services, unified communications, and Internet of Things solutions.