Verizon Communications (NYSE:VZ) Stock Falls 3.3% – Here’s Why

Verizon Communications Inc. (NYSE:VZ) shares traded down 3.3% on Monday. The company traded as low as $42.47 and last traded at $43.1760. 45,150,469 shares traded hands during mid-day trading, an increase of 65% from the average session volume of 27,409,156 shares. The stock had previously closed at $44.66.

Verizon Communications News Summary

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

• Positive Sentiment: Verizon reported third-quarter adjusted earnings of $1.31 per share, above the $1.27 analyst consensus, while net income increased year over year. Strong margins and cost controls helped earnings grow faster than revenue. Verizon Communications Q3 Earnings Surpass Estimates
• Positive Sentiment: Wireless momentum was a major bright spot: Verizon added 406,000 postpaid phone customers, its strongest third-quarter result in five years, along with 137,000 postpaid accounts. Broadband additions totaled 314,000. Verizon Delivers Another Record-Breaking Quarter
• Positive Sentiment: The company raised its 2026 outlook for adjusted EPS, postpaid phone additions and free cash flow. Verizon now expects approximately 1.1 million to 1.2 million postpaid phone additions and free-cash-flow growth approaching 12%. Verizon Raises 2026 Outlook
• Positive Sentiment: Verizon signed an agreement valued at more than $2 billion with Amazon Web Services to expand AI infrastructure, providing a potential new growth and fiber-network opportunity. Verizon Lifts Outlook and Inks Amazon Deal

Analyst Ratings Changes

Several research firms recently commented on VZ. Morgan Stanley raised their price target on shares of Verizon Communications from $50.00 to $52.00 and gave the stock an “equal weight” rating in a report on Monday, July 27th. Barclays upped their price objective on shares of Verizon Communications from $45.00 to $46.00 and gave the company an “equal weight” rating in a research note on Monday, July 27th. Scotiabank cut their target price on shares of Verizon Communications from $51.50 to $50.00 and set a “sector outperform” rating for the company in a research report on Friday, October 9th. TD Cowen boosted their price target on shares of Verizon Communications from $54.00 to $56.00 and gave the company a “buy” rating in a report on Monday, July 27th. Finally, Moffett Nathanson dropped their price target on shares of Verizon Communications from $56.00 to $49.00 and set a “neutral” rating on the stock in a research note on Monday, July 20th. Eight research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. According to MarketBeat.com, Verizon Communications presently has a consensus rating of “Hold” and a consensus target price of $50.80.

Verizon Communications Trading Down 3.3%

The company has a market cap of $179.39 billion, a price-to-earnings ratio of 11.24, a price-to-earnings-growth ratio of 1.70 and a beta of 0.26. The company’s 50 day moving average price is $47.57 and its 200 day moving average price is $46.63. The company has a debt-to-equity ratio of 1.36, a quick ratio of 0.57 and a current ratio of 0.60.

Verizon Communications (NYSE:VZ) last released its quarterly earnings data on Monday, October 26th. The cell phone carrier reported $1.31 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.27 by $0.04. The business had revenue of $34.31 billion during the quarter, compared to analyst estimates of $34.77 billion. Verizon Communications had a net margin of 11.64% and a return on equity of 19.48%. Verizon Communications’s quarterly revenue was up 1.5% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.21 EPS. Research analysts anticipate that Verizon Communications Inc. will post 5.03 EPS for the current year.

Verizon Communications Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, November 2nd. Shareholders of record on Friday, October 9th will be issued a dividend of $0.7075 per share. This represents a $2.83 annualized dividend and a yield of 6.6%. The ex-dividend date is Friday, October 9th. Verizon Communications’s dividend payout ratio (DPR) is 73.70%.

Insider Buying and Selling at Verizon Communications

In other Verizon Communications news, CEO Kyle Malady sold 1,100 shares of the business’s stock in a transaction dated Tuesday, October 20th. The stock was sold at an average price of $44.48, for a total value of $48,928.00. Following the completion of the sale, the chief executive officer owned 99,966 shares of the company’s stock, valued at $4,446,487.68. The trade was a 1.09% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 9,900 shares of company stock valued at $469,073 over the last ninety days. 0.03% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Flagship Harbor Advisors LLC boosted its position in Verizon Communications by 0.5% during the third quarter. Flagship Harbor Advisors LLC now owns 63,796 shares of the cell phone carrier’s stock worth $2,926,000 after purchasing an additional 289 shares during the period. Peterson Wealth Services raised its position in shares of Verizon Communications by 5.6% in the third quarter. Peterson Wealth Services now owns 36,706 shares of the cell phone carrier’s stock valued at $1,684,000 after purchasing an additional 1,935 shares during the period. Motive Wealth Advisors acquired a new stake in shares of Verizon Communications in the third quarter worth $236,000. Leo Wealth LLC acquired a new stake in shares of Verizon Communications in the third quarter worth $2,344,000. Finally, Smith Chas P & Associates PA Cpas acquired a new stake in shares of Verizon Communications in the third quarter worth $726,000. Institutional investors and hedge funds own 62.06% of the company’s stock.

Verizon Communications Company Profile

Verizon Communications Inc is a telecommunications company that provides wireless communications, broadband, and digital connectivity services. Through its consumer business, Verizon offers mobile voice and data plans, smartphones and other connected devices, home internet, fixed wireless access, and fiber-optic broadband services under the Fios brand.

Verizon also serves businesses, government agencies, and other organizations with wireless connectivity, private networks, internet and data services, managed communications, cloud and security solutions, and Internet of Things services.