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

Verizon Communications Inc. (NYSE:VZ) was the target of some unusual options trading activity on Wednesday. Stock traders bought 150,469 call options on the stock. This represents an increase of 166% compared to the typical daily volume of 56,496 call options.

Verizon Communications Stock Performance

Shares of Verizon Communications stock opened at $38.96 on Thursday. The firm’s 50-day moving average is $41.42 and its 200 day moving average is $41.83. The stock has a market cap of $164.01 billion, a price-to-earnings ratio of 16.79, a PEG ratio of 3.05 and a beta of 0.46. Verizon Communications has a 1 year low of $37.56 and a 1 year high of $45.36. The company has a debt-to-equity ratio of 1.32, a current ratio of 0.66 and a quick ratio of 0.62.

Verizon Communications (NYSE:VZ) last released its quarterly earnings data on Tuesday, October 22nd. The cell phone carrier reported $1.19 EPS for the quarter, beating the consensus estimate of $1.18 by $0.01. Verizon Communications had a return on equity of 20.05% and a net margin of 7.30%. The company had revenue of $33.30 billion for the quarter, compared to analysts’ expectations of $33.42 billion. During the same period last year, the firm posted $1.22 earnings per share. Verizon Communications’s revenue was up .9% compared to the same quarter last year. Sell-side analysts anticipate that Verizon Communications will post 4.61 EPS for the current fiscal year.

Verizon Communications Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, February 3rd. Investors of record on Friday, January 10th will be given a dividend of $0.6775 per share. This represents a $2.71 dividend on an annualized basis and a yield of 6.96%. The ex-dividend date is Friday, January 10th. Verizon Communications’s dividend payout ratio (DPR) is presently 116.81%.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on the stock. Sanford C. Bernstein initiated coverage on shares of Verizon Communications in a report on Tuesday, December 10th. They issued a “market perform” rating and a $48.00 target price for the company. Tigress Financial lifted their target price on Verizon Communications from $52.00 to $55.00 and gave the stock a “buy” rating in a research note on Tuesday, October 1st. StockNews.com cut Verizon Communications from a “strong-buy” rating to a “buy” rating in a research note on Monday, December 16th. Royal Bank of Canada lifted their target price on Verizon Communications from $42.00 to $46.00 and gave the company a “sector perform” rating in a report on Monday, September 23rd. Finally, UBS Group boosted their price objective on Verizon Communications from $44.00 to $45.00 and gave the stock a “neutral” rating in a report on Friday, December 20th. Ten research analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $46.54.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. Capital Performance Advisors LLP purchased a new position in Verizon Communications in the 3rd quarter worth approximately $31,000. Accordant Advisory Group Inc grew its stake in Verizon Communications by 137.6% in the third quarter. Accordant Advisory Group Inc now owns 777 shares of the cell phone carrier’s stock worth $35,000 after purchasing an additional 450 shares in the last quarter. Legend Financial Advisors Inc. lifted its stake in Verizon Communications by 69.6% in the fourth quarter. Legend Financial Advisors Inc. now owns 780 shares of the cell phone carrier’s stock worth $31,000 after acquiring an additional 320 shares during the period. MidAtlantic Capital Management Inc. purchased a new stake in Verizon Communications in the third quarter worth about $44,000. Finally, McClarren Financial Advisors Inc. raised its stake in shares of Verizon Communications by 762.6% during the 3rd quarter. McClarren Financial Advisors Inc. now owns 1,061 shares of the cell phone carrier’s stock worth $48,000 after acquiring an additional 938 shares in the last quarter. 62.06% of the stock is currently owned by institutional investors.

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).