Verizon Communications Target of Unusually High Options Trading (NYSE:VZ)

Key Points

• Verizon Communications experienced a significant increase in call options trading, with 78,293 options acquired, marking a 22% rise from its typical daily volume.
• The company recently announced a quarterly dividend increase to $0.69 per share, representing a 6.7% yield based on the boosted annualized dividend of $2.76.
• Institutional investors now control 62.06% of Verizon's stock, with several major firms increasing their stakes in the first quarter of 2023.

Verizon Communications Inc. (NYSE:VZ - Get Free Report) saw some unusual options trading on Tuesday. Stock traders acquired 78,293 call options on the stock. This represents an increase of 22% compared to the typical daily volume of 64,045 call options.

Institutional Investors Weigh In On Verizon Communications

Several institutional investors and hedge funds have recently made changes to their positions in the business. Brighton Jones LLC grew its stake in shares of Verizon Communications by 61.2% in the 4th quarter. Brighton Jones LLC now owns 43,986 shares of the cell phone carrier's stock worth $1,759,000 after acquiring an additional 16,704 shares in the last quarter. UMB Bank n.a. grew its position in Verizon Communications by 6.8% in the 1st quarter. UMB Bank n.a. now owns 105,944 shares of the cell phone carrier's stock worth $4,806,000 after purchasing an additional 6,771 shares in the last quarter. Patriot Financial Group Insurance Agency LLC increased its stake in Verizon Communications by 4.8% in the 1st quarter. Patriot Financial Group Insurance Agency LLC now owns 30,644 shares of the cell phone carrier's stock valued at $1,390,000 after buying an additional 1,412 shares during the last quarter. Miracle Mile Advisors LLC lifted its position in shares of Verizon Communications by 3.5% during the 1st quarter. Miracle Mile Advisors LLC now owns 49,760 shares of the cell phone carrier's stock worth $2,257,000 after buying an additional 1,702 shares in the last quarter. Finally, Single Point Partners LLC purchased a new position in shares of Verizon Communications in the 1st quarter worth approximately $226,000. Institutional investors own 62.06% of the company's stock.

Verizon Communications Stock Down 0.1%

Shares of Verizon Communications stock traded down $0.06 on Tuesday, reaching $41.39. 25,690,647 shares of the company were exchanged, compared to its average volume of 21,159,393. The company has a market capitalization of $174.49 billion, a price-to-earnings ratio of 9.64, a PEG ratio of 3.37 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. The company has a 50-day moving average of $43.63 and a 200 day moving average of $43.33. Verizon Communications has a one year low of $37.58 and a one year high of $47.35.

Verizon Communications (NYSE:VZ - Get Free Report) last released its quarterly earnings results on Monday, July 21st. The cell phone carrier reported $1.22 earnings per share for the quarter, beating the consensus estimate of $1.19 by $0.03. Verizon Communications had a net margin of 13.28% and a return on equity of 19.61%. The firm had revenue of $34.50 billion for the quarter, compared to analysts' expectations of $33.47 billion. During the same period in the prior year, the firm earned $1.15 EPS. The business's revenue was up 5.2% on a year-over-year basis. Verizon Communications has set its FY 2025 guidance at 4.636-4.728 EPS. On average, equities research analysts forecast that Verizon Communications will post 4.69 earnings per share for the current year.

Verizon Communications Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, November 3rd. Shareholders of record on Friday, October 10th will be issued a dividend of $0.69 per share. This represents a $2.76 annualized dividend and a yield of 6.7%. The ex-dividend date of this dividend is Friday, October 10th. This is a boost from Verizon Communications's previous quarterly dividend of $0.68. Verizon Communications's dividend payout ratio (DPR) is presently 64.34%.

Analysts Set New Price Targets

Several research analysts have issued reports on VZ shares. Morgan Stanley increased their price objective on Verizon Communications from $47.00 to $48.00 and gave the stock an "equal weight" rating in a research note on Tuesday, July 22nd. Wells Fargo & Company boosted their price target on shares of Verizon Communications from $42.00 to $43.00 and gave the company an "equal weight" rating in a research report on Thursday, July 10th. Royal Bank Of Canada boosted their target price on Verizon Communications from $45.00 to $46.00 and gave the stock a "sector perform" rating in a report on Tuesday, July 22nd. JPMorgan Chase & Co. lifted their price objective on Verizon Communications from $47.00 to $49.00 and gave the company a "neutral" rating in a research report on Tuesday, July 22nd. Finally, Arete Research upgraded shares of Verizon Communications to a "strong-buy" rating in a report on Tuesday, July 8th. Three research analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating and eleven have assigned a Hold rating to the company. According to MarketBeat.com, Verizon Communications presently has a consensus rating of "Moderate Buy" and a consensus target price of $47.63.

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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