Traders Buy Large Volume of Verizon Communications Call Options (NYSE:VZ)

Key Points

• Verizon call-option activity surged: Investors bought 131,608 call options, 149% above the typical volume of 52,934, signaling heightened trading interest in the stock.
• Verizon is pursuing a wireless venture with AT&T and T-Mobile to improve coverage in rural and remote areas, while SpaceX’s emerging direct-to-phone satellite service presents a competitive threat.
• Analysts maintain a consensus “Hold” rating with a $50.90 target price. Verizon also offers a quarterly dividend of $0.7075 per share, equivalent to an annualized yield of roughly 6.1%.

Verizon Communications Inc. (NYSE:VZ - Get Free Report) saw unusually large options trading on Thursday. Stock investors bought 131,608 call options on the company. This represents an increase of 149% compared to the typical volume of 52,934 call options.

Key Stories Impacting Verizon Communications

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

• Positive Sentiment: Verizon joined AT&T and T-Mobile in a wireless venture aimed at reducing coverage gaps in rural areas and remote travel corridors. The initiative could improve network reach, emergency communications and future satellite/direct-to-device services, potentially strengthening Verizon’s long-term competitive position. Verizon Communications Joins Wireless Venture To Close U.S. Coverage Gaps
• Positive Sentiment: Investors continue to view Verizon as a potentially attractive income stock as higher interest rates pressure telecom and other high-yield sectors. Verizon’s quarterly dividend of $0.7075 per share represents an annualized payout of $2.83 and a yield of about 6.2%, supporting demand from value and income-oriented investors. 3 U.S. Dividend Stocks for Higher Rates Including Verizon
• Neutral Sentiment: Former Verizon Chairman and CEO Hans Vestberg joined Humanitas AI as a senior adviser and investor. The appointment may enhance Vestberg’s profile in the AI infrastructure sector, but it does not appear to have a direct financial impact on Verizon. Former Verizon Chairman and CEO Hans Vestberg Joins Humanitas
• Neutral Sentiment: Verizon is preparing network assets and emergency crews ahead of Tropical Storm Isaias. The response should protect service reliability and public-safety communications, though storm-related deployment and repair costs could create modest operating pressure. Verizon Readies Network for Tropical Storm Isaias
• Negative Sentiment: The FCC’s approval of a path for SpaceX to provide direct-to-phone satellite service increases the competitive threat to Verizon and other wireless carriers. Satellite connectivity could reduce carriers’ control over service in remote areas and require additional network investment or strategic partnerships. SpaceX Gets Permission to Compete With AT&T and Verizon From Orbit
• Negative Sentiment: CEO Kyle Malady sold 1,100 shares worth approximately $50,325 under a pre-arranged Rule 10b5-1 plan. The sale reduced his holdings by only about 1%, making it a limited signal, but repeated insider sales may add modest pressure. Verizon CEO Sells 1,100 Shares

Wall Street Analysts Forecast Growth

VZ has been the subject of a number of recent research reports. Moffett Nathanson reduced their target price on shares of Verizon Communications from $56.00 to $49.00 and set a "neutral" rating for the company in a research report on Monday, July 20th. Weiss Ratings reissued a "buy (b)" rating on shares of Verizon Communications in a report on Wednesday, August 26th. TD Cowen upped their price objective on 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 increased their price target on Verizon Communications from $50.00 to $52.00 and gave the company an "equal weight" rating in a research note on Monday, July 27th. Finally, BNP Paribas Exane lowered their price objective on Verizon Communications from $46.00 to $44.00 and set a "neutral" rating for the company in a research note on Tuesday, July 14th. Eight research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. Based on data from MarketBeat.com, Verizon Communications presently has an average rating of "Hold" and a consensus target price of $50.90.

Insiders Place Their Bets

In related news, CEO Kyle Malady sold 1,100 shares of the stock in a transaction dated Tuesday, October 6th. The shares were sold at an average price of $45.75, for a total value of $50,325.00. Following the completion of the sale, the chief executive officer owned 102,166 shares in the company, valued at approximately $4,674,094.50. This trade represents a 1.07% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 7,700 shares of company stock valued at $372,922. 0.03% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Verizon Communications

Institutional investors have recently made changes to their positions in the company. State Street Corp boosted its position in Verizon Communications by 3.5% in the fourth quarter. State Street Corp now owns 222,951,399 shares of the cell phone carrier's stock worth $9,080,810,000 after purchasing an additional 7,461,335 shares during the last quarter. Bank of America Corp DE increased its holdings in Verizon Communications by 15.4% in the 1st quarter. Bank of America Corp DE now owns 62,101,021 shares of the cell phone carrier's stock worth $3,117,471,000 after acquiring an additional 8,289,877 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in shares of Verizon Communications by 14.1% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 41,173,226 shares of the cell phone carrier's stock worth $1,743,274,000 after purchasing an additional 5,075,794 shares during the period. Bank of New York Mellon Corp boosted its holdings in Verizon Communications by 20.8% in the 1st quarter. Bank of New York Mellon Corp now owns 38,164,982 shares of the cell phone carrier's stock worth $1,915,882,000 after buying an additional 6,580,820 shares during the period. Finally, Dimensional Fund Advisors LP increased its stake in Verizon Communications by 6.4% in the 1st quarter. Dimensional Fund Advisors LP now owns 32,734,998 shares of the cell phone carrier's stock worth $1,643,339,000 after buying an additional 1,972,634 shares in the last quarter. Hedge funds and other institutional investors own 62.06% of the company's stock.

Verizon Communications Stock Up 1.3%

NYSE:VZ traded up $0.57 during trading hours on Thursday, hitting $46.34. 14,341,363 shares of the company traded hands, compared to its average volume of 26,898,990. Verizon Communications has a one year low of $38.39 and a one year high of $51.68. The company has a quick ratio of 0.57, a current ratio of 0.60 and a debt-to-equity ratio of 1.36. The firm's 50-day simple moving average is $48.28 and its 200-day simple moving average is $47.13. The company has a market cap of $192.55 billion, a PE ratio of 12.07, a PEG ratio of 1.56 and a beta of 0.26.

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

Verizon Communications Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, November 2nd. Stockholders of record on Friday, October 9th will be given 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 6.1%. Verizon Communications's dividend payout ratio is currently 73.70%.

About Verizon Communications

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.

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