Verizon Communications (NYSE:VZ) Trading Up 2.1% – Should You Buy?

Verizon Communications Inc. (NYSE:VZ) traded up 2.1% on Wednesday . The stock traded as high as $39.85 and last traded at $39.8250. 25,591,990 shares traded hands during trading, a decline of 19% from the average session volume of 31,461,598 shares. The stock had previously closed at $39.01.

Verizon Communications News Roundup

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

• Positive Sentiment: Investors shrugged off the outage and the stock rose on the session, suggesting confidence in Verizon’s longer‑term cash flow and dividend profile. Read More.
• Positive Sentiment: Verizon Business picked up industry recognition (Medallia Expy awards), a reputational plus for enterprise services that can support higher‑margin revenue growth. Read More.
• Positive Sentiment: Regulatory relief: the FCC revised a phone‑unlocking rule in a way described as favorable for Verizon, removing a potential regulatory headwind. Read More.
• Neutral Sentiment: Company updated executive performance‑based equity award terms — governance/comp change to watch but unlikely to move shares materially on its own. Read More.
• Neutral Sentiment: Analyst/industry pieces highlight Verizon’s 5G and digital‑health initiatives as potential growth drivers versus peers — useful context for medium‑term strategy but not immediate price catalysts. Read More.
• Neutral Sentiment: Verizon has meaningful institutional ownership and remains a high‑yield dividend name; dividend story cushions investor reaction to one‑off operational issues. Read More.
• Negative Sentiment: Major network outage: Downdetector and multiple outlets reported tens of thousands (reports up to ~175,000) of users losing voice/data across large U.S. cities — raises near‑term reputational risk, potential customer complaints/churn, and possible regulatory scrutiny if recurring. Read More.
• Negative Sentiment: Scotiabank trimmed its VZ price target citing intensified wireless promotions and competitive pressure — a sign analysts see margin/competitive risks that could limit upside. Read More.

Wall Street Analyst Weigh In

VZ has been the subject of several recent analyst reports. JPMorgan Chase & Co. decreased their target price on Verizon Communications from $49.00 to $47.00 and set a “neutral” rating for the company in a research report on Thursday, October 30th. BNP Paribas Exane lowered Verizon Communications from an “outperform” rating to a “neutral” rating and set a $44.00 price objective for the company. in a research report on Tuesday, October 21st. Morgan Stanley lowered their target price 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. Royal Bank Of Canada reduced their price target on shares of Verizon Communications from $46.00 to $44.00 and set a “sector perform” rating for the company in a research report on Thursday, October 30th. Finally, Scotiabank raised their price target on shares of Verizon Communications from $50.50 to $51.00 and gave the stock a “sector perform” rating in a report on Thursday, October 30th. 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. Based on data from MarketBeat, Verizon Communications has a consensus rating of “Moderate Buy” and an average price target of $47.47.

Verizon Communications Stock Performance

The company has a quick ratio of 0.69, a current ratio of 0.74 and a debt-to-equity ratio of 1.19. The stock has a market cap of $167.92 billion, a P/E ratio of 8.51, a price-to-earnings-growth ratio of 3.80 and a beta of 0.34. The firm’s 50-day moving average is $40.55 and its two-hundred day moving average is $41.84.

Verizon Communications (NYSE:VZ) last announced its quarterly earnings results on Wednesday, October 29th. The cell phone carrier reported $1.21 EPS for the quarter, topping the consensus estimate of $1.19 by $0.02. Verizon Communications had a net margin of 14.43% and a return on equity of 19.31%. The company had revenue of $33.82 billion for the quarter, compared to analyst estimates of $34.19 billion. During the same quarter in the prior year, the business posted $1.19 EPS. Verizon Communications’s quarterly revenue was up 1.5% on a year-over-year basis. As a group, research analysts expect that Verizon Communications Inc. will post 4.69 EPS for the current year.

Verizon Communications Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, February 2nd. Shareholders of record on Monday, January 12th will be given a $0.69 dividend. The ex-dividend date of this dividend is Monday, January 12th. This represents a $2.76 dividend on an annualized basis and a dividend yield of 6.9%. Verizon Communications’s payout ratio is currently 58.97%.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in VZ. Bulwark Capital Corp acquired a new position in Verizon Communications during the second quarter valued at approximately $25,000. Advantage Trust Co boosted its holdings in shares of Verizon Communications by 549.5% during the 2nd quarter. Advantage Trust Co now owns 591 shares of the cell phone carrier’s stock worth $26,000 after buying an additional 500 shares during the period. TruNorth Capital Management LLC boosted its holdings in shares of Verizon Communications by 95.3% during the 3rd quarter. TruNorth Capital Management LLC now owns 625 shares of the cell phone carrier’s stock worth $27,000 after buying an additional 305 shares during the period. Holos Integrated Wealth LLC bought a new stake in shares of Verizon Communications during the 4th quarter worth $28,000. Finally, Foster Dykema Cabot & Partners LLC bought a new position in Verizon Communications in the 3rd quarter worth $29,000. 62.06% of the stock is owned by institutional investors.

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.