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

Verizon Communications Inc. (NYSE:VZ) saw some unusual options trading activity on Wednesday. Traders purchased 576,732 call options on the company. This represents an increase of approximately 1,050% compared to the typical volume of 50,160 call options.

Verizon Communications Stock Up 0.2 %

VZ stock traded up $0.10 during trading hours on Wednesday, reaching $44.11. 12,529,384 shares of the stock were exchanged, compared to its average volume of 18,659,494. The firm’s 50-day moving average is $42.44 and its 200-day moving average is $41.18. The company has a market cap of $185.67 billion, a price-to-earnings ratio of 16.43, a PEG ratio of 4.03 and a beta of 0.42. The company has a debt-to-equity ratio of 1.29, a current ratio of 0.63 and a quick ratio of 0.60. Verizon Communications has a 12 month low of $30.62 and a 12 month high of $45.36.

Verizon Communications (NYSE:VZ) last announced its quarterly earnings data on Monday, July 22nd. The cell phone carrier reported $1.15 earnings per share for the quarter, meeting the consensus estimate of $1.15. The company had revenue of $32.80 billion during the quarter, compared to analysts’ expectations of $33.05 billion. Verizon Communications had a return on equity of 20.10% and a net margin of 8.38%. Verizon Communications’s revenue for the quarter was up .6% compared to the same quarter last year. During the same quarter last year, the company earned $1.21 EPS. On average, equities research analysts expect that Verizon Communications will post 4.58 earnings per share for the current year.

Verizon Communications Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, November 1st. Investors of record on Thursday, October 10th will be paid a $0.678 dividend. This is an increase from Verizon Communications’s previous quarterly dividend of $0.67. This represents a $2.71 annualized dividend and a yield of 6.15%. The ex-dividend date is Thursday, October 10th. Verizon Communications’s dividend payout ratio (DPR) is 101.12%.

Analyst Upgrades and Downgrades

VZ has been the subject of several research analyst reports. TD Cowen boosted their price objective on shares of Verizon Communications from $48.00 to $51.00 and gave the stock a “buy” rating in a research report on Tuesday, July 23rd. JPMorgan Chase & Co. dropped their price objective on shares of Verizon Communications from $46.00 to $45.00 and set a “neutral” rating for the company in a research report on Tuesday, July 23rd. Bank of America increased their price target on Verizon Communications from $41.00 to $45.00 and gave the company a “neutral” rating in a research note on Thursday, September 26th. Royal Bank of Canada increased their price target on Verizon Communications from $42.00 to $46.00 and gave the company a “sector perform” rating in a research note on Monday, September 23rd. Finally, The Goldman Sachs Group began coverage on Verizon Communications in a research note on Monday, July 1st. They issued a “buy” rating and a $50.00 price target on the stock. Eight equities research analysts have rated the stock with a hold rating and ten have issued a buy rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $46.26.

Institutional Investors Weigh In On Verizon Communications

Hedge funds have recently bought and sold shares of the company. Koesten Hirschmann & Crabtree INC. acquired a new stake in Verizon Communications during the first quarter worth approximately $25,000. Mizuho Securities Co. Ltd. acquired a new stake in Verizon Communications during the second quarter worth approximately $32,000. MFA Wealth Advisors LLC acquired a new stake in shares of Verizon Communications in the second quarter valued at approximately $33,000. Vima LLC acquired a new stake in shares of Verizon Communications in the fourth quarter valued at approximately $36,000. Finally, Pittenger & Anderson Inc. raised its position in shares of Verizon Communications by 50.4% in the first quarter. Pittenger & Anderson Inc. now owns 883 shares of the cell phone carrier’s stock valued at $37,000 after buying an additional 296 shares in the last quarter. 62.06% of the stock is currently owned by institutional investors and hedge funds.

About Verizon Communications

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).