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

Key Points

• Unusual options activity picked up in Verizon, with traders buying 78,376 call options on Friday, about 25% above the average daily volume.
• Verizon reported better-than-expected earnings of $1.30 per share and raised its FY2026 guidance for EPS, revenue, and cash flow, signaling stronger confidence in future results.
• The company also added 184,000 postpaid phone connections and lifted its buyback target to as much as $4.5 billion, though revenue still came in below estimates and debt remains a concern.

Verizon Communications Inc. (NYSE:VZ - Get Free Report) was the target of some unusual options trading activity on Friday. Stock investors bought 78,376 call options on the company. This represents an increase of 25% compared to the average daily volume of 62,572 call options.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the business. Regent Peak Wealth Advisors LLC lifted its stake in Verizon Communications by 6.0% in the second quarter. Regent Peak Wealth Advisors LLC now owns 5,834 shares of the cell phone carrier's stock valued at $247,000 after buying an additional 329 shares during the last quarter. Bank & Trust Co increased its holdings in shares of Verizon Communications by 1.6% in the 2nd quarter. Bank & Trust Co now owns 47,798 shares of the cell phone carrier's stock valued at $2,024,000 after acquiring an additional 739 shares during the period. Butensky & Cohen Financial Security Inc. raised its position in Verizon Communications by 1.7% in the 2nd quarter. Butensky & Cohen Financial Security Inc. now owns 122,165 shares of the cell phone carrier's stock valued at $5,172,000 after purchasing an additional 2,087 shares during the last quarter. Whitener Capital Management Inc. raised its position in Verizon Communications by 11.6% in the 2nd quarter. Whitener Capital Management Inc. now owns 42,340 shares of the cell phone carrier's stock valued at $1,793,000 after purchasing an additional 4,413 shares during the last quarter. Finally, Tema ETFs LLC boosted its stake in Verizon Communications by 10.7% during the 2nd quarter. Tema ETFs LLC now owns 82,352 shares of the cell phone carrier's stock worth $3,487,000 after purchasing an additional 7,975 shares during the period. 62.06% of the stock is owned by institutional investors and hedge funds.

Verizon Communications News Roundup

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

• Positive Sentiment: Verizon beat adjusted EPS expectations at $1.30 and reported record adjusted EBITDA, showing stronger profitability than Wall Street expected. Conference Call
• Positive Sentiment: The company raised its FY2026 guidance for adjusted EPS, mobility and broadband service revenue, cash flow from operations, and free cash flow, which signals management is more confident about the second half. Reuters guidance update
• Positive Sentiment: Verizon added 184,000 postpaid phone connections and more than 550,000 total mobility and broadband net additions, suggesting healthier subscriber momentum and less reliance on aggressive promotions. Reuters Google deal
• Positive Sentiment: Verizon expanded its full-year buyback target to up to $4.5 billion and said dividend coverage remains strong, which supports the stock’s appeal as an income name. Seeking Alpha analysis
• Neutral Sentiment: Revenue came in below estimates and was slightly down year over year, so investors still see some top-line pressure even with better earnings and cash flow. MarketBeat earnings summary
• Negative Sentiment: The company continues to carry a large debt load, which could limit flexibility if growth slows or interest costs remain elevated. Seeking Alpha analysis

Verizon Communications Stock Up 5.3%

Shares of VZ stock traded up $2.34 during trading on Friday, reaching $46.16. The company's stock had a trading volume of 26,123,893 shares, compared to its average volume of 29,091,873. Verizon Communications has a 1-year low of $38.39 and a 1-year high of $51.68. The stock's 50-day moving average price is $45.39 and its 200 day moving average price is $46.20. The company has a market capitalization of $192.73 billion, a price-to-earnings ratio of 11.22, a P/E/G ratio of 1.08 and a beta of 0.26. 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 - Get Free Report) last issued its quarterly earnings results on Friday, July 24th. The cell phone carrier reported $1.30 EPS for the quarter, beating the consensus estimate of $1.27 by $0.03. The company had revenue of $34.25 billion during the quarter, compared to analysts' expectations of $35.16 billion. Verizon Communications had a net margin of 12.46% and a return on equity of 19.25%. The firm's revenue was down .6% compared to the same quarter last year. During the same quarter last year, the company posted $1.22 EPS. Verizon Communications has set its FY 2026 guidance at 4.990-5.040 EPS. On average, research analysts anticipate that Verizon Communications will post 4.98 EPS for the current 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 paid a $0.7075 dividend. The ex-dividend date is Friday, July 10th. This represents a $2.83 dividend on an annualized basis and a yield of 6.1%. Verizon Communications's payout ratio is currently 69.02%.

Analyst Ratings Changes

VZ has been the topic of a number of recent analyst reports. Freedom Capital raised shares of Verizon Communications to a "hold" rating in a research report on Friday, June 12th. BNP Paribas Exane reduced their price target on shares of Verizon Communications from $46.00 to $44.00 and set a "neutral" rating on the stock in a research note on Tuesday, July 14th. Dbs Bank lowered shares of Verizon Communications from a "moderate buy" rating to a "hold" rating in a report on Tuesday, April 7th. JPMorgan Chase & Co. increased their price objective 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. Finally, Erste Group Bank reiterated a "hold" rating on shares of Verizon Communications in a report on Tuesday, May 5th. Nine investment analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $50.03.

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.

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