Verizon Communications (NYSE:VZ) Stock Falls 10% Following Analyst Downgrade

Shares of Verizon Communications Inc. (NYSE:VZ) dropped 10% on Friday after Scotiabank lowered their price target on the stock from $51.50 to $50.00. Scotiabank currently has a sector outperform rating on the stock. Verizon Communications traded as low as $40.81 and last traded at $41.7180. Approximately 94,766,537 shares changed hands during mid-day trading, an increase of 247% from the average session volume of 27,303,645 shares. The stock had previously closed at $46.35.

Several other analysts have also recently commented on VZ. Barclays upped their target price on Verizon Communications from $45.00 to $46.00 and gave the company an “equal weight” rating in a report on Monday, July 27th. Morgan Stanley boosted their price target on shares of Verizon Communications from $50.00 to $52.00 and gave the stock an “equal weight” rating in a research report on Monday, July 27th. Moffett Nathanson reduced their price objective 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. Wells Fargo & Company increased their price objective on shares of Verizon Communications from $43.00 to $47.00 and gave the stock an “equal weight” rating in a research report on Monday, July 27th. Finally, Weiss Ratings reissued a “buy (b)” rating on shares of Verizon Communications in a research note on Wednesday, August 26th. Eight equities research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $50.80.

Insiders Place Their Bets

In other Verizon Communications news, CEO Kyle Malady sold 1,100 shares of the business’s stock in a transaction that occurred on Tuesday, October 6th. The stock was sold at an average price of $45.75, for a total value of $50,325.00. Following the transaction, the chief executive officer directly owned 102,166 shares of the company’s stock, valued at approximately $4,674,094.50. The trade was a 1.07% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 7,700 shares of company stock valued at $372,922 in the last ninety days. Insiders own 0.03% of the company’s stock.

Verizon Communications News Roundup

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

• Positive Sentiment: Scotiabank lowered its price target for Verizon from $51.50 to $50.00 but maintained a “sector outperform” rating. The revised target still implies meaningful potential upside from current levels. Scotiabank Verizon Price Target Update
• Positive Sentiment: Verizon’s quarterly dividend of $0.7075 per share remains scheduled for payment on November 2, representing an annualized payout of approximately $2.83 per share. The company’s high dividend yield may attract income-focused investors during the selloff.
• Neutral Sentiment: Investors are also looking ahead to Verizon’s October 26 earnings report. The company’s latest quarter showed earnings above expectations but revenue below consensus, making wireless customer additions, service revenue and broadband growth important upcoming indicators.
• Neutral Sentiment: Verizon is preparing network equipment, generators and emergency-response teams ahead of Tropical Storm Isaias. The effort supports network reliability and public-safety customers, although storm-related deployment and repair costs could temporarily affect expenses. Verizon Readies Network for Tropical Storm Isaias
• Negative Sentiment: SpaceX agreed to acquire a nationwide portfolio of low-band 800 MHz spectrum from Grain Management, subject to regulatory approval. The transaction would give Starlink Mobile a stronger terrestrial component and create a more direct rival to Verizon’s wireless network. SpaceX Network Plans Pressure Telecom Stocks
• Negative Sentiment: Investors fear a hybrid satellite-and-cellular Starlink network could pressure Verizon’s pricing, customer growth and network differentiation. Speculation that SpaceX could eventually develop a Starlink-compatible phone increases the perceived threat to carriers and handset makers. SpaceX Starlink Mobile Competition
• Negative Sentiment: CEO Kyle Malady sold 1,100 Verizon shares under a pre-arranged Rule 10b5-1 plan. The transaction reduced his position by roughly 1%, so it is a limited signal compared with the broader SpaceX-related selling pressure.

Institutional Trading of Verizon Communications

Several hedge funds have recently modified their holdings of the stock. Wealth Enhancement Trust Services Inc. increased its stake in Verizon Communications by 5.4% in the third quarter. Wealth Enhancement Trust Services Inc. now owns 20,224 shares of the cell phone carrier’s stock valued at $928,000 after purchasing an additional 1,040 shares in the last quarter. Moody National Bank Trust Division boosted its position in shares of Verizon Communications by 2.3% during the 3rd quarter. Moody National Bank Trust Division now owns 27,314 shares of the cell phone carrier’s stock worth $1,253,000 after purchasing an additional 621 shares in the last quarter. Adelphi Trust Co boosted its position in shares of Verizon Communications by 14.6% during the 3rd quarter. Adelphi Trust Co now owns 6,373 shares of the cell phone carrier’s stock worth $292,000 after purchasing an additional 811 shares in the last quarter. Rockland Trust Co. grew its stake in shares of Verizon Communications by 2.6% in the 3rd quarter. Rockland Trust Co. now owns 492,341 shares of the cell phone carrier’s stock valued at $22,584,000 after buying an additional 12,321 shares during the period. Finally, Greenwich Wealth Management LLC increased its position in Verizon Communications by 6.5% in the 2nd quarter. Greenwich Wealth Management LLC now owns 41,617 shares of the cell phone carrier’s stock valued at $1,762,000 after buying an additional 2,544 shares in the last quarter. Institutional investors own 62.06% of the company’s stock.

Verizon Communications Price Performance

The business has a 50-day moving average of $48.29 and a 200 day moving average of $47.11. The company has a current ratio of 0.60, a quick ratio of 0.57 and a debt-to-equity ratio of 1.36. The firm has a market capitalization of $173.33 billion, a P/E ratio of 10.86, a price-to-earnings-growth ratio of 1.55 and a beta of 0.26.

Verizon Communications (NYSE:VZ) last announced its quarterly earnings results on Friday, July 24th. The cell phone carrier reported $1.30 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.27 by $0.03. Verizon Communications had a return on equity of 19.48% and a net margin of 11.64%.The business had revenue of $34.25 billion for the quarter, compared to analyst estimates of $35.16 billion. During the same quarter in the prior year, the company earned $1.22 earnings per share. The company’s quarterly revenue was down .7% on a year-over-year basis. Verizon Communications has set its FY 2026 guidance at 4.990-5.040 EPS. On average, sell-side analysts predict that Verizon Communications Inc. will post 5.04 earnings per share for the current fiscal year.

Verizon Communications Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, November 2nd. Investors of record on Friday, October 9th will be issued a $0.7075 dividend. This represents a $2.83 dividend on an annualized basis and a dividend yield of 6.8%. The ex-dividend date is Friday, October 9th. Verizon Communications’s dividend payout ratio (DPR) is currently 73.70%.

Verizon Communications Company Profile

Verizon Communications Inc is a telecommunications company headquartered in New York City and listed on the New York Stock Exchange under the symbol VZ. The company was formed in 2000 through the merger of Bell Atlantic and GTE and has developed into one of the largest communications providers in the United States.

Verizon’s consumer business provides wireless voice and data services, smartphones and other connected devices, home internet, broadband, and related communications products.