TLDR
- Verizon (VZ) stock fell 3.3% in pre-market trading Friday to $43.70 after a report that SpaceX wants access to 80,000 cell sites.
- AT&T and T-Mobile also dropped, even though AT&T beat earnings and raised its outlook.
- Verizon had risen 3.7% to about $45.16 on Thursday before the reversal.
- CEO Kyle Malady sold 1,100 shares on Oct. 20 under a pre-arranged plan, and a Form 144 filing was disclosed Oct. 22.
- Verizon reports earnings Monday, with analysts expecting EPS of about $1.27.
Verizon (VZ) stock slid 3.3% in pre-market trading Friday to $43.70. The drop followed a Bloomberg report that SpaceX is negotiating access to at least 80,000 cell sites in the US.
Verizon Communications Inc., VZ
That is roughly half of all purpose-built towers in the country. The access could lay the groundwork for a fourth nationwide wireless carrier.
The slide wiped out a good Thursday. Verizon rose 3.7% to about $45.16 after closing at $43.56 the day before, with a session high of $45.29.
Volume reached about 28.2 million, slightly above the 27.3 million daily average. AT&T and T-Mobile also fell in after-hours and pre-market trading as investors weighed a well-funded new entrant.
AT&T Results Fail to Lift the Sector
AT&T reported third-quarter results ahead of Verizon. It beat earnings and raised its full-year outlook.
Even so, the report did not lift sector sentiment. Investors pointed to concerns about slowing industry growth.
MarketBeat also noted SpaceX’s roughly $8 billion nationwide 800 MHz spectrum purchase. Some investors worry satellite connectivity could pressure wireless pricing, which has overshadowed Verizon’s upcoming report.
Technically, Verizon was already below its 50-day average of $47.65 and its 200-day average of $46.66. That left the stock open to a sharper reaction on bad headlines.
What Wall Street and Insiders Are Doing
Bernstein analyst Laurent Yoon kept a Hold rating and a $45 price target. The broader consensus is also Hold, with an average target of $50.80.
Eight analysts rate the stock a Buy and twelve rate it a Hold. TD Cowen has a Buy rating and a $56 target.
CEO Kyle Malady sold 1,100 shares at $44.48 on Tuesday, for $48,928. The sale cut his direct holdings by 1.09%.
A Form 144 filing, which signals a planned sale of restricted securities, was disclosed Oct. 22. Insiders have sold about $469,000 of stock over the past three months.
Verizon carries a market value of $187.61 billion and a P/E ratio of 11.76. Its quarterly dividend of $0.7075 works out to a yield of about 6.3%.
Last quarter, Verizon earned $1.30 per share against the $1.27 expected. Revenue of $34.25 billion missed the $35.16 billion estimate and fell 0.7% from a year earlier.
Verizon reports Monday, and analysts expect EPS of about $1.27. Investors will watch wireless customer additions, churn and broadband growth, with the stock now near the lower end of its 52-week range of $38.54 to $51.68.
Stop guessing and start investing with confidence. KnockoutStocks gives you the AI insights, market intelligence, and stock research you need to spot opportunities, cut through the noise, and make smarter investment decisions — all in one powerful platform.
Sign up today and get 50% OFF full access to our premium stock picks.
Simply use coupon code SPECIAL50 at checkout to claim your exclusive discount.
