Verizon Communications (NYSE:VZ) Shares Gap Down – Time to Sell?

Verizon Communications Inc. (NYSE:VZ)’s stock price gapped down before the market opened on Wednesday. The stock had previously closed at $44.54, but opened at $43.00. Verizon Communications shares last traded at $43.7420, with a volume of 3,927,078 shares.

Verizon Communications News Summary

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

• Positive Sentiment: Verizon enters its earnings release with favorable customer trends, continued fiber expansion and an attractive valuation, while analysts expect single-digit year-over-year EPS growth. These factors could support the stock if results and guidance meet or exceed expectations. Is Verizon Stock Worth Buying Ahead of Q3 Earnings Release?
• Positive Sentiment: Verizon’s defensive profile and high-yield appeal may attract income-oriented investors, particularly with the shares trading at a relatively modest earnings multiple. Find Out How Much Passive Income $50,000 Generates in These 4 High Yield Stocks
• Neutral Sentiment: Verizon is scheduled to report third-quarter results in the coming week. Investors are focused on whether customer additions, wireless service revenue and management guidance can validate expectations for earnings growth. What You Need to Know Ahead of Verizon Communications’ Earnings Release
• Negative Sentiment: Wireless stocks sold off broadly even after AT&T reported a quarterly beat and raised its outlook, suggesting investors remain concerned about the sector’s growth and competitive outlook. Verizon and T-Mobile also declined in sympathy. AT&T Sinks Despite Q3 Beat and Raised Outlook
• Negative Sentiment: Analysts cite intense competition, Verizon’s elevated debt burden and the risk that the company may not deliver a meaningful earnings beat. These concerns are limiting enthusiasm ahead of the report. Verizon Reports Next Week: Wall Street Expects Earnings Growth
• Negative Sentiment: Starlink’s satellite connectivity ambitions and weaker customer-experience scores for legacy wireless carriers add longer-term competitive pressure, potentially challenging Verizon’s pricing power and customer retention. Elon Musk Says Starlink Is Rewriting Telecom

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on VZ. Scotiabank dropped their price objective on shares of Verizon Communications from $51.50 to $50.00 and set a “sector outperform” rating for the company in a research note on Friday, October 9th. TD Cowen increased their target price on shares of Verizon Communications from $54.00 to $56.00 and gave the stock a “buy” rating in a research report on Monday, July 27th. Morgan Stanley raised their target price 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 raised their target price on shares of Verizon Communications from $45.00 to $46.00 and gave the stock an “equal weight” rating in a report on Monday, July 27th. Finally, BNP Paribas Exane dropped their price target on shares of Verizon Communications from $46.00 to $44.00 and set a “neutral” rating for the company in a research report on Tuesday, July 14th. Eight equities research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $50.80.

Verizon Communications Stock Performance

The company has a debt-to-equity ratio of 1.36, a quick ratio of 0.57 and a current ratio of 0.60. The firm has a market cap of $179.05 billion, a P/E ratio of 11.23, a P/E/G ratio of 1.69 and a beta of 0.26. The company’s 50 day moving average is $47.78 and its 200 day moving average is $46.74.

Verizon Communications (NYSE:VZ) last issued its quarterly earnings data on Friday, July 24th. The cell phone carrier reported $1.30 earnings per share for the quarter, topping analysts’ consensus estimates of $1.27 by $0.03. The business had revenue of $34.25 billion for the quarter, compared to analyst estimates of $35.16 billion. Verizon Communications had a return on equity of 19.48% and a net margin of 11.64%. Verizon Communications’s quarterly revenue was down .7% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.22 EPS. Verizon Communications has set its FY 2026 guidance at 4.990-5.040 EPS. As a group, equities analysts predict that Verizon Communications Inc. will post 5.03 earnings per share for the current fiscal year.

Verizon Communications Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, November 2nd. Investors of record on Friday, October 9th will be paid a $0.7075 dividend. The ex-dividend date of this dividend is Friday, October 9th. This represents a $2.83 annualized dividend and a dividend yield of 6.6%. Verizon Communications’s payout ratio is currently 73.70%.

Insider Activity at Verizon Communications

In other news, CEO Kyle Malady sold 1,100 shares of the stock in a transaction dated Tuesday, October 13th. The stock was sold at an average price of $42.93, for a total value of $47,223.00. Following the completion of the sale, the chief executive officer owned 101,066 shares of the company’s stock, valued at approximately $4,338,763.38. This represents a 1.08% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 8,800 shares of company stock valued at $420,145. Insiders own 0.03% of the company’s stock.

Institutional Investors Weigh In On Verizon Communications

Large investors have recently modified their holdings of the company. Capstone Capital Management Ltd acquired a new stake in Verizon Communications during the third quarter worth approximately $592,000. Range Financial Group LLC increased its stake in Verizon Communications by 2.6% during the 3rd quarter. Range Financial Group LLC now owns 104,036 shares of the cell phone carrier’s stock valued at $4,772,000 after purchasing an additional 2,649 shares in the last quarter. Newman Dignan & Sheerar Inc. raised its holdings in shares of Verizon Communications by 1.2% in the 3rd quarter. Newman Dignan & Sheerar Inc. now owns 26,408 shares of the cell phone carrier’s stock worth $1,211,000 after acquiring an additional 310 shares during the last quarter. MBM Wealth Consultants LLC raised its stake in shares of Verizon Communications by 21.5% in the third quarter. MBM Wealth Consultants LLC now owns 14,860 shares of the cell phone carrier’s stock worth $682,000 after purchasing an additional 2,628 shares during the last quarter. Finally, 55 North Private Wealth LLC raised its holdings in shares of Verizon Communications by 7.5% in the third quarter. 55 North Private Wealth LLC now owns 8,510 shares of the cell phone carrier’s stock valued at $390,000 after purchasing an additional 596 shares during the last quarter. 62.06% of the stock is currently owned by institutional investors and hedge funds.

About Verizon Communications

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.