Verizon Communications (NYSE:VZ) Trading Up 3.9% Following Analyst Upgrade

Verizon Communications Inc. (NYSE:VZ)’s share price shot up 3.9% during mid-day trading on Tuesday after JPMorgan Chase & Co. raised their price target on the stock from $47.00 to $49.00. JPMorgan Chase & Co. currently has a neutral rating on the stock. Verizon Communications traded as high as $46.76 and last traded at $46.3440. 58,949,519 shares were traded during mid-day trading, an increase of 60% from the average session volume of 36,769,254 shares. The stock had previously closed at $44.61.

Other research analysts also recently issued reports about the stock. KeyCorp reiterated a “sector weight” rating on shares of Verizon Communications in a research report on Monday, January 26th. William Blair raised shares of Verizon Communications to an “outperform” rating in a report on Monday. Wells Fargo & Company boosted their target price on Verizon Communications from $41.00 to $44.00 and gave the stock an “equal weight” rating in a research report on Monday. Evercore ISI boosted their target price on shares of Verizon Communications from $48.00 to $50.00 and gave the stock an “outperform” rating in a report on Monday. Finally, Barclays initiated coverage on Verizon Communications in a report on Thursday, January 22nd. They set an “equal weight” rating and a $43.00 price target on the stock. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and twelve have given a Hold rating to the company. According to MarketBeat.com, Verizon Communications currently has a consensus rating of “Hold” and a consensus price target of $49.02.

Key Stories Impacting Verizon Communications

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

• Positive Sentiment: Q4 beat and subscriber strength: Verizon posted a Q4 earnings beat (EPS $1.09 vs. $1.06 est.) with strong wireless subscriber additions, supporting near-term revenue momentum. Read More.
• Positive Sentiment: Capital return & M&A narrative: Coverage highlights Verizon’s Frontier deal cost cuts and a $25B buyback program that boost shareholder returns and underpin valuation support. Read More.
• Positive Sentiment: Dividend increase: Verizon raised its quarterly dividend (to $0.7075), increasing yield to ~6.4%, which attracts income-focused buyers and supports the share rally. (Company release)
• Neutral Sentiment: Analyst price-target momentum: Multiple firms raised targets (Citigroup to $50 with a buy, Evercore/Scotiabank to ~$50, Morgan Stanley/JPMorgan to ~$49, RBC to $48), signaling modest consensus upside but mixed ratings. Read More.
• Neutral Sentiment: Market/technical notes: Commentary suggests VZ is moving with the S&P communications index and may hit near-term resistance at recent peaks; expect momentum trading around these levels. Read More.
• Negative Sentiment: Congressional/security scrutiny: Senator Maria Cantwell said Verizon is blocking release of Salt Typhoon security-assessment documents and requested CEOs to testify — this raises regulatory and reputational risk. Read More.
• Negative Sentiment: Customer loss & margin pressure: Management acknowledged prior pricing moves cost customers; analysts also note heavy 5G/fiber spending and price locks that could pressure margins and cash flow. Read More. • Read More.

Hedge Funds Weigh In On Verizon Communications

Institutional investors have recently made changes to their positions in the company. Brighton Jones LLC raised its position in Verizon Communications by 61.2% in the fourth quarter. Brighton Jones LLC now owns 43,986 shares of the cell phone carrier’s stock valued at $1,759,000 after purchasing an additional 16,704 shares during the period. Clarius Group LLC grew its position in shares of Verizon Communications by 8.1% during the second quarter. Clarius Group LLC now owns 20,752 shares of the cell phone carrier’s stock worth $898,000 after buying an additional 1,549 shares in the last quarter. Berger Financial Group Inc raised its stake in Verizon Communications by 5.3% in the second quarter. Berger Financial Group Inc now owns 10,856 shares of the cell phone carrier’s stock valued at $470,000 after buying an additional 547 shares in the last quarter. Merit Financial Group LLC boosted its holdings in Verizon Communications by 16.9% in the second quarter. Merit Financial Group LLC now owns 148,878 shares of the cell phone carrier’s stock valued at $6,442,000 after purchasing an additional 21,522 shares in the last quarter. Finally, Grimes & Company Inc. raised its stake in Verizon Communications by 1.2% during the 2nd quarter. Grimes & Company Inc. now owns 271,947 shares of the cell phone carrier’s stock worth $11,767,000 after acquiring an additional 3,280 shares in the last quarter. 62.06% of the stock is owned by hedge funds and other institutional investors.

Verizon Communications Price Performance

The company has a current ratio of 0.91, a quick ratio of 0.87 and a debt-to-equity ratio of 1.32. The firm has a market capitalization of $195.41 billion, a PE ratio of 11.44, a P/E/G ratio of 4.15 and a beta of 0.33. The company has a fifty day moving average price of $40.41 and a two-hundred day moving average price of $41.60.

Verizon Communications (NYSE:VZ) last announced its quarterly earnings data on Friday, January 30th. The cell phone carrier reported $1.09 EPS for the quarter, topping analysts’ consensus estimates of $1.06 by $0.03. The company had revenue of $36.38 billion during the quarter, compared to the consensus estimate of $36.20 billion. Verizon Communications had a net margin of 12.43% and a return on equity of 19.03%. Verizon Communications’s quarterly revenue was up 2.0% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.10 EPS. Verizon Communications has set its FY 2026 guidance at 4.900-4.950 EPS. Sell-side analysts forecast that Verizon Communications Inc. will post 4.69 earnings per share for the current year.

Verizon Communications Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, May 1st. Investors of record on Friday, April 10th will be paid a $0.7075 dividend. The ex-dividend date is Friday, April 10th. This is an increase from Verizon Communications’s previous quarterly dividend of $0.69. This represents a $2.83 annualized dividend and a yield of 6.1%. Verizon Communications’s payout ratio is currently 68.15%.

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.