Verizon Communications (NYSE:VZ) Trading Up 1.1% – Still a Buy?

Shares of Verizon Communications Inc. (NYSE:VZ) shot up 1.1% during mid-day trading on Thursday . The company traded as high as $40.73 and last traded at $40.5550. 28,062,547 shares were traded during trading, a decline of 13% from the average session volume of 32,316,121 shares. The stock had previously closed at $40.13.

Key Verizon Communications News

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

• Positive Sentiment: Unusually large call buying — Investors purchased ~276,566 call options on VZ Friday (≈+278% vs. typical volume), signaling short-term bullish bets or hedging ahead of catalysts. This elevated options flow can increase near-term upside trading interest.
• Positive Sentiment: Outpacing the wireless industry — Zacks highlights VZ outperforming peers over the past year thanks to 5G upgrades, network slicing and new partnerships, suggesting operational momentum that could support longer‑term revenue growth. Article Title
• Positive Sentiment: Near-term market beat — Zacks also notes VZ outpaced the broader market on Jan. 8, reflecting supportive sentiment from investors reacting to recent operational/news items. Article Title
• Positive Sentiment: Product/IoT initiatives highlighted — Coverage on Verizon’s event perks and Industrial IoT push points to potential revenue diversification beyond consumer wireless, a positive catalyst if adoption accelerates. Article Title
• Positive Sentiment: High‑yield appeal — The Motley Fool recommends VZ as a top high‑yield dividend stock (yield ~7%), which can attract income-focused investors, especially if rate cuts materialize. Article Title
• Neutral Sentiment: Macro rate narrative — Commentary that the Fed should cut rates this year could be supportive for high‑yield telecoms like VZ if realized, but this is speculative and timing/scale of cuts remain uncertain. Article Title
• Negative Sentiment: Job‑cut chatter and dividend concerns — Social media summaries report large workforce reductions and debate over dividend sustainability ahead of earnings, raising short‑term sentiment risk and questions about execution and cost structure. Article Title
• Negative Sentiment: New 12‑month low flagged — Coverage noting VZ reached a new 12‑month low raises caution for momentum investors and underscores current downside pressure for the stock. Article Title

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on the stock. Weiss Ratings downgraded Verizon Communications from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Friday, October 24th. Wall Street Zen cut shares of Verizon Communications from a “buy” rating to a “hold” rating in a research report on Friday, September 26th. JPMorgan Chase & Co. lowered their price target on shares of Verizon Communications from $49.00 to $47.00 and set a “neutral” rating on the stock in a research report on Thursday, October 30th. Morgan Stanley decreased their price target on Verizon Communications from $48.00 to $47.00 and set an “equal weight” rating on the stock in a research note on Wednesday, December 10th. Finally, BNP Paribas lowered Verizon Communications from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, October 21st. Two analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating and eleven have issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $47.47.

Verizon Communications Stock Down 0.3%

The stock has a 50-day simple moving average of $40.54 and a 200-day simple moving average of $41.88. The firm has a market capitalization of $170.59 billion, a PE ratio of 8.65, a P/E/G ratio of 3.53 and a beta of 0.34. The company has a quick ratio of 0.69, a current ratio of 0.74 and a debt-to-equity ratio of 1.19.

Verizon Communications (NYSE:VZ) last announced its quarterly earnings results on Wednesday, October 29th. The cell phone carrier reported $1.21 earnings per share for the quarter, beating the consensus estimate of $1.19 by $0.02. Verizon Communications had a return on equity of 19.31% and a net margin of 14.43%.The company had revenue of $33.82 billion during the quarter, compared to analysts’ expectations of $34.19 billion. During the same period in the previous year, the business earned $1.19 earnings per share. The firm’s quarterly revenue was up 1.5% compared to the same quarter last year. Analysts forecast that Verizon Communications Inc. will post 4.69 EPS for the current year.

Verizon Communications Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, February 2nd. Investors of record on Monday, January 12th will be issued a $0.69 dividend. The ex-dividend date is Monday, January 12th. This represents a $2.76 annualized dividend and a yield of 6.8%. Verizon Communications’s payout ratio is 58.97%.

Institutional Trading of Verizon Communications

A number of hedge funds and other institutional investors have recently modified their holdings of VZ. Bulwark Capital Corp purchased a new position in Verizon Communications in the 2nd quarter worth approximately $25,000. Advantage Trust Co raised its stake in shares of Verizon Communications by 549.5% in the second quarter. Advantage Trust Co now owns 591 shares of the cell phone carrier’s stock worth $26,000 after purchasing an additional 500 shares during the last quarter. TruNorth Capital Management LLC lifted its holdings in shares of Verizon Communications by 95.3% during the third quarter. TruNorth Capital Management LLC now owns 625 shares of the cell phone carrier’s stock valued at $27,000 after purchasing an additional 305 shares in the last quarter. Foster Dykema Cabot & Partners LLC purchased a new stake in shares of Verizon Communications during the third quarter valued at $29,000. Finally, Global Wealth Strategies & Associates increased its holdings in Verizon Communications by 739.5% in the 3rd quarter. Global Wealth Strategies & Associates now owns 680 shares of the cell phone carrier’s stock worth $30,000 after buying an additional 599 shares in 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.