Verizon Communications Sees Unusually High Options Volume (NYSE:VZ)

Key Points

• Verizon Communications saw an 87,643 call options traded, marking a 25% increase from its average volume of 70,084.
• Analysts have set price targets for the stock, with a consensus of $47.41, and ratings ranging from Strong Buy to Hold.
• The company announced a quarterly dividend increase, raising it from $0.68 to $0.69 per share, providing a 7.1% yield for investors.

Verizon Communications Inc. (NYSE:VZ - Get Free Report) was the target of some unusual options trading on Thursday. Stock traders acquired 87,643 call options on the stock. This represents an increase of approximately 25% compared to the average volume of 70,084 call options.

Wall Street Analyst Weigh In

Several research analysts have weighed in on the company. JPMorgan Chase & Co. boosted their price target on Verizon Communications from $47.00 to $49.00 and gave the stock a "neutral" rating in a research report on Tuesday, July 22nd. The Goldman Sachs Group assumed coverage on Verizon Communications in a research report on Tuesday, September 2nd. They set a "buy" rating and a $49.00 price target on the stock. Wells Fargo & Company boosted their target price on Verizon Communications from $42.00 to $43.00 and gave the stock an "equal weight" rating in a report on Thursday, July 10th. Arete Research raised Verizon Communications to a "strong-buy" rating in a report on Tuesday, July 8th. Finally, Weiss Ratings reissued a "buy (b-)" rating on shares of Verizon Communications in a report on Wednesday, October 8th. Three research analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating and thirteen have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $47.41.

Hedge Funds Weigh In On Verizon Communications

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Kestra Investment Management LLC lifted its stake in Verizon Communications by 121.8% during the first quarter. Kestra Investment Management LLC now owns 176,531 shares of the cell phone carrier's stock worth $8,007,000 after purchasing an additional 96,931 shares during the last quarter. DekaBank Deutsche Girozentrale raised its position in Verizon Communications by 11.0% during the 2nd quarter. DekaBank Deutsche Girozentrale now owns 7,297,469 shares of the cell phone carrier's stock valued at $309,551,000 after purchasing an additional 722,559 shares during the last quarter. Element Capital Management LLC bought a new position in shares of Verizon Communications in the 1st quarter worth approximately $2,799,000. Cadinha & Co. LLC raised its position in shares of Verizon Communications by 2,916.8% in the 2nd quarter. Cadinha & Co. LLC now owns 347,716 shares of the cell phone carrier's stock worth $15,046,000 after acquiring an additional 336,190 shares in the last quarter. Finally, Ritholtz Wealth Management raised its position in shares of Verizon Communications by 23.8% in the 2nd quarter. Ritholtz Wealth Management now owns 205,416 shares of the cell phone carrier's stock worth $8,888,000 after acquiring an additional 39,445 shares in the last quarter. 62.06% of the stock is currently owned by hedge funds and other institutional investors.

Verizon Communications Trading Down 2.9%

NYSE VZ traded down $1.14 during trading hours on Thursday, hitting $38.67. 27,636,040 shares of the company's stock were exchanged, compared to its average volume of 21,570,916. The stock has a 50-day simple moving average of $43.05 and a 200 day simple moving average of $43.01. Verizon Communications has a 1-year low of $37.58 and a 1-year high of $47.35. The firm has a market cap of $163.02 billion, a price-to-earnings ratio of 9.01, a PEG ratio of 3.04 and a beta of 0.37. The company has a current ratio of 0.64, a quick ratio of 0.60 and a debt-to-equity ratio of 1.19.

Verizon Communications (NYSE:VZ - Get Free Report) last posted its earnings results on Monday, July 21st. The cell phone carrier reported $1.22 earnings per share for the quarter, beating analysts' consensus estimates of $1.19 by $0.03. The company had revenue of $34.50 billion for the quarter, compared to analyst estimates of $33.47 billion. Verizon Communications had a return on equity of 19.61% and a net margin of 13.28%.The company's revenue for the quarter was up 5.2% on a year-over-year basis. During the same quarter last year, the company earned $1.15 earnings per share. On average, equities analysts forecast that Verizon Communications will post 4.69 EPS for the current fiscal year.

Verizon Communications Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, November 3rd. Investors of record on Friday, October 10th will be given a dividend of $0.69 per share. The ex-dividend date is Friday, October 10th. This is a positive change from Verizon Communications's previous quarterly dividend of $0.68. This represents a $2.76 annualized dividend and a yield of 7.1%. Verizon Communications's dividend payout ratio (DPR) is presently 64.34%.

Verizon Communications Company Profile

Verizon Communications Inc, through its subsidiaries, engages in the provision of communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide. It operates in two segments, Verizon Consumer Group (Consumer) and Verizon Business Group (Business).

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