Stock Traders Buy Large Volume of Call Options on Verizon Communications (NYSE:VZ)

Verizon Communications Inc. (NYSE:VZ) was the target of unusually large options trading on Friday. Stock traders acquired 276,566 call options on the stock. This is an increase of 278% compared to the average daily volume of 73,168 call options.

Hedge Funds Weigh In On Verizon Communications

A number of institutional investors have recently added to or reduced their stakes in VZ. Bulwark Capital Corp bought a new position in shares of Verizon Communications in the 2nd quarter valued at $25,000. Advantage Trust Co increased its holdings in Verizon Communications by 549.5% in the 2nd quarter. Advantage Trust Co now owns 591 shares of the cell phone carrier’s stock worth $26,000 after purchasing an additional 500 shares in the last quarter. TruNorth Capital Management LLC raised its position in Verizon Communications by 95.3% in the third quarter. TruNorth Capital Management LLC now owns 625 shares of the cell phone carrier’s stock valued at $27,000 after purchasing an additional 305 shares during the last quarter. Foster Dykema Cabot & Partners LLC bought a new position in Verizon Communications in the third quarter valued at about $29,000. Finally, Global Wealth Strategies & Associates boosted its stake in shares of Verizon Communications by 739.5% during the third quarter. Global Wealth Strategies & Associates now owns 680 shares of the cell phone carrier’s stock valued at $30,000 after purchasing an additional 599 shares in the last quarter. 62.06% of the stock is currently owned by institutional investors and hedge funds.

Verizon Communications Stock Performance

NYSE VZ opened at $40.46 on Friday. The firm’s 50 day simple moving average is $40.54 and its 200 day simple moving average is $41.88. The firm has a market capitalization of $170.59 billion, a price-to-earnings ratio of 8.65, a P/E/G ratio of 3.52 and a beta of 0.34. The company has a current ratio of 0.74, a quick ratio of 0.69 and a debt-to-equity ratio of 1.19. Verizon Communications has a 1 year low of $37.58 and a 1 year high of $47.35.

Verizon Communications (NYSE:VZ) last released its earnings results on Wednesday, October 29th. The cell phone carrier reported $1.21 earnings per share for the quarter, topping the consensus estimate of $1.19 by $0.02. Verizon Communications had a return on equity of 19.31% and a net margin of 14.43%.The firm had revenue of $33.82 billion during the quarter, compared to analysts’ expectations of $34.19 billion. During the same period in the prior year, the company earned $1.19 earnings per share. The company’s quarterly revenue was up 1.5% on a year-over-year basis. As a group, research analysts expect that Verizon Communications will post 4.69 earnings per share for the current fiscal year.

Verizon Communications Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, February 2nd. Stockholders of record on Monday, January 12th will be issued a $0.69 dividend. The ex-dividend date of this dividend is Monday, January 12th. This represents a $2.76 dividend on an annualized basis and a dividend yield of 6.8%. Verizon Communications’s dividend payout ratio is 58.97%.

More Verizon Communications News

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

• Positive Sentiment: Unusually large call buying — Investors purchased ~276,566 call options on VZ Friday (≈+278% vs. typical volume), signaling short-term bullish bets or hedging ahead of catalysts. This elevated options flow can increase near-term upside trading interest.
• Positive Sentiment: Outpacing the wireless industry — Zacks highlights VZ outperforming peers over the past year thanks to 5G upgrades, network slicing and new partnerships, suggesting operational momentum that could support longer‑term revenue growth. Article Title
• Positive Sentiment: Near-term market beat — Zacks also notes VZ outpaced the broader market on Jan. 8, reflecting supportive sentiment from investors reacting to recent operational/news items. Article Title
• Positive Sentiment: Product/IoT initiatives highlighted — Coverage on Verizon’s event perks and Industrial IoT push points to potential revenue diversification beyond consumer wireless, a positive catalyst if adoption accelerates. Article Title
• Positive Sentiment: High‑yield appeal — The Motley Fool recommends VZ as a top high‑yield dividend stock (yield ~7%), which can attract income-focused investors, especially if rate cuts materialize. Article Title
• Neutral Sentiment: Macro rate narrative — Commentary that the Fed should cut rates this year could be supportive for high‑yield telecoms like VZ if realized, but this is speculative and timing/scale of cuts remain uncertain. Article Title
• Negative Sentiment: Job‑cut chatter and dividend concerns — Social media summaries report large workforce reductions and debate over dividend sustainability ahead of earnings, raising short‑term sentiment risk and questions about execution and cost structure. Article Title
• Negative Sentiment: New 12‑month low flagged — Coverage noting VZ reached a new 12‑month low raises caution for momentum investors and underscores current downside pressure for the stock. Article Title

Analysts Set New Price Targets

A number of research analysts have commented on VZ shares. Royal Bank Of Canada decreased their price objective on Verizon Communications from $46.00 to $44.00 and set a “sector perform” rating on the stock in a report on Thursday, October 30th. Weiss Ratings downgraded shares of Verizon Communications from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Friday, October 24th. Morgan Stanley dropped their price objective on shares of Verizon Communications from $48.00 to $47.00 and set an “equal weight” rating for the company in a research note on Wednesday, December 10th. BNP Paribas Exane downgraded shares of Verizon Communications from an “outperform” rating to a “neutral” rating and set a $44.00 price objective for the company. in a report on Tuesday, October 21st. Finally, Scotiabank raised their target price on shares of Verizon Communications from $50.50 to $51.00 and gave the stock a “sector perform” rating in a report on Thursday, October 30th. Two research analysts have rated the stock with a Strong Buy rating, six have given a Buy rating and eleven have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $47.47.

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.