Verizon Communications (NYSE:VZ) Stock Price Down 3.9% – Time to Sell?

Shares of Verizon Communications Inc. (NYSE:VZ) dropped 3.9% during trading on Tuesday . The stock traded as low as $42.00 and last traded at $42.3710. Approximately 57,634,744 shares traded hands during mid-day trading, an increase of 100% from the average daily volume of 28,811,670 shares. The stock had previously closed at $44.10.

Verizon Communications News Roundup

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

• Positive Sentiment: Verizon and BT Group announced a 50:50 international joint venture to combine their enterprise operations, which could improve scale, streamline global connectivity services, and support long-term revenue opportunities. Reuters article on BT, Verizon announce joint venture for international enterprise units
• Neutral Sentiment: Some market commentary highlights Verizon as an income-oriented stock, which may help draw attention from dividend-focused investors even as broader sentiment remains pressured. Article on passive income stocks
• Negative Sentiment: Verizon was removed from the Dow Jones Industrial Average and replaced by Alphabet, triggering index-fund rebalancing and reinforcing concerns that the stock is losing blue-chip status. Yahoo Finance article on why Verizon shares are trading lower today
• Negative Sentiment: Investors are also worried that SpaceX could eventually pressure legacy wireless carriers like Verizon by entering the mobile market, adding a new long-term competitive threat. Barrons article on SpaceX might bring mobile phone to market

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on the stock. Citigroup boosted their price target on shares of Verizon Communications from $50.00 to $55.00 and gave the company a “buy” rating in a report on Friday, March 20th. Weiss Ratings reissued a “buy (b)” rating on shares of Verizon Communications in a research note on Friday, May 29th. JPMorgan Chase & Co. increased their price target on shares of Verizon Communications from $49.00 to $52.00 and gave the stock a “neutral” rating in a research report on Thursday, April 30th. Morgan Stanley raised their price target on shares of Verizon Communications from $49.00 to $50.00 and gave the stock an “equal weight” rating in a research note on Tuesday, April 28th. Finally, Barclays lifted their price objective on Verizon Communications from $43.00 to $47.00 and gave the company an “equal weight” rating in a report on Tuesday, March 31st. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and twelve have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $50.59.

Verizon Communications Stock Down 3.9%

The stock has a market capitalization of $176.92 billion, a price-to-earnings ratio of 10.33, a price-to-earnings-growth ratio of 1.13 and a beta of 0.24. The firm has a 50 day simple moving average of $46.88 and a 200-day simple moving average of $45.89. The company has a debt-to-equity ratio of 1.38, a current ratio of 0.64 and a quick ratio of 0.61.

Verizon Communications (NYSE:VZ) last issued its earnings results on Monday, April 27th. The cell phone carrier reported $1.28 EPS for the quarter, beating the consensus estimate of $1.21 by $0.07. Verizon Communications had a net margin of 12.46% and a return on equity of 19.25%. The company had revenue of $34.44 billion for the quarter, compared to the consensus estimate of $34.82 billion. During the same quarter in the previous year, the company earned $1.19 EPS. The firm’s revenue for the quarter was up 2.7% compared to the same quarter last year. Verizon Communications has set its FY 2026 guidance at 4.950-4.990 EPS. On average, sell-side analysts forecast that Verizon Communications Inc. will post 4.98 EPS for the current fiscal year.

Verizon Communications Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, August 3rd. Investors of record on Friday, July 10th will be issued a dividend of $0.7075 per share. This represents a $2.83 annualized dividend and a yield of 6.7%. The ex-dividend date of this dividend is Friday, July 10th. Verizon Communications’s dividend payout ratio (DPR) is currently 69.02%.

Institutional Trading of Verizon Communications

Several large investors have recently added to or reduced their stakes in VZ. Strengthening Families & Communities LLC boosted its holdings in shares of Verizon Communications by 490.0% in the 4th quarter. Strengthening Families & Communities LLC now owns 649 shares of the cell phone carrier’s stock worth $26,000 after acquiring an additional 539 shares in the last quarter. Robinswood Financial LLC acquired a new stake in Verizon Communications during the 1st quarter valued at $27,000. Holos Integrated Wealth LLC acquired a new stake in Verizon Communications during the 4th quarter valued at $28,000. Lam Group Inc. bought a new position in Verizon Communications in the 1st quarter valued at $28,000. Finally, Foster Dykema Cabot & Partners LLC bought a new position in Verizon Communications in the 3rd quarter valued at $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.