Unusual Options Activity Observed for Verizon Communications

On Thursday, Verizon Communications Inc. (NYSE:VZ) experienced a notable surge in options trading. Traders purchased a total of 82,982 call options, marking a 43% increase compared to the average daily volume of 58,200 call options.

Recent Stock Performance

When the market opened on Friday, Verizon’s stock was priced at $39.17. The company boasts a market capitalization of $164.89 billion and has a price-to-earnings ratio of 16.88. Its PEG ratio stands at 3.27, and the stock has a beta of 0.46. Currently, Verizon’s 50-day moving average is $40.93, while the 200-day moving average is $41.64. Over the past year, the stock hit a low of $37.58 and a high of $45.36. Financially, Verizon has a debt-to-equity ratio of 1.32 and liquidity ratios including a quick ratio of 0.62 and a current ratio of 0.66.

Quarterly Earnings Report

Verizon recently released its quarterly earnings report on Tuesday, October 22nd. The cell phone provider recorded earnings per share (EPS) of $1.19, surpassing analysts' expectations of $1.18 by a penny. The reported revenue for the quarter was $33.30 billion, slightly below the estimated $33.42 billion from analysts. Verizon’s net margin is reported at 7.30%, with a return on equity of 20.05%. This quarter’s revenue showed a 0.9% increase when compared year-over-year. In the same quarter last year, the company’s EPS was $1.22. Analysts predict that the EPS for the current year will average at 4.59.

Dividend Update

Verizon has also revealed a quarterly dividend that will be distributed on Monday, February 3rd. Shareholders who are on record as of Friday, January 10th will receive a dividend of $0.6775 per share. This dividend equates to an annual payout of $2.71 and offers a yield of 6.92%. Currently, Verizon's dividend payout ratio is at 116.81%.

Institutional Investors’ Moves

Several hedge funds have recently adjusted their holdings in Verizon. For instance, Capital Performance Advisors LLP entered a new position valued around $31,000 during the third quarter. Additionally, Legend Financial Advisors Inc. raised its stake in Verizon by 69.6% in the fourth quarter, owning 780 shares worth approximately $31,000 after adding 320 shares. Accordant Advisory Group Inc. increased its stake by 137.6%, owning 777 shares worth $35,000 after purchasing 450 shares. Cedar Mountain Advisors LLC grew its position by an impressive 655.5%, holding 967 shares valued at $39,000 after acquiring 839 additional shares. Lastly, MidAtlantic Capital Management Inc. took a new position valued at $44,000 during the third quarter. Hedge funds and institutional investors collectively own about 62.06% of Verizon’s shares.

Analyst Ratings Update

Various equity research analysts have recently updated their ratings on Verizon's shares. Bank of America lifted its price target from $41.00 to $45.00 and maintained a “neutral” rating as of September 26th. UBS Group also increased its target from $44.00 to $45.00, similarly rating the stock as “neutral” on December 20th. Tigress Financial raised its target price from $52.00 to $55.00 and assigned a “buy” rating on October 1st. Coverage by Sanford C. Bernstein initiated a “market perform” rating with a $48.00 target on December 10th. Conversely, KeyCorp downgraded Verizon from an “overweight” position to a “sector weight” on October 24th. Overall, ten analysts have given a hold rating, seven have recommended buying, and one analyst has given a strong buy rating. According to MarketBeat data, Verizon holds an average rating of “Moderate Buy” with a consensus target price of $46.54.

Company Overview

Verizon Communications Inc., through its subsidiaries, provides a range of communications, technology, information, and entertainment products and services to consumers, businesses, and government entities globally. It operates primarily in two segments: Verizon Consumer Group and Verizon Business Group.

Verizon, Options, Trading