Sage Capital Piles In to Verizon. Is the Stock a Buy Now?
Key Points
Added 107,798 shares of Verizon in an estimated $4.67 million trade, based on average pricing for fiscal Q3 2025
Transaction value accounted for 1.1% of 13F AUM as of September 30, 2025
Post-trade stake: 246,445 shares valued at $10.83 million as of September 30, 2025
Position represents 2.6% of fund AUM, placing it outside the fund's top five holdings
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On October 7, 2025, Sage Capital Advisors, LLC disclosed a buy of Verizon(NYSE:VZ) shares, with an estimated transaction value of $4.67 million based on quarterly average pricing.
What happened
According to a filing with the Securities and Exchange Commission dated October 7, 2025, the firm increased its position in Verizon by 107,798 shares during the quarter. The estimated value of shares added was $4.67 million, bringing the fund’s total Verizon stake to 246,445 shares, worth $10.83 million as of September 30, 2025.
What else to know
The increased Verizon position now accounts for 2.6% of the fund’s reportable equity holdings
Top holdings after the filing:
- NASDAQ:AAPL: $37.26 million (8.9% of AUM) as of September 30, 2025
- NASDAQ:MSFT: $21.92 million (5.2% of AUM) as of September 30, 2025
- NASDAQ:NVDA: $19.31 million (4.6% of AUM) as of September 30, 2025
- NASDAQ:GOOGL: $18.69 million (4.4% of AUM) as of September 30, 2025
- NASDAQ:AMZN: $16.32 million (3.9% of AUM) as of September 30, 2025
As of October 6, 2025, Verizon shares were priced at $41.44, down 5.47% over the past year and have underperformed the S&P 500 by 18.9 percentage points.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $137.00 billion |
| Net Income (TTM) | $18.19 billion |
| Dividend Yield | 6.50% |
| Price (as of market close October 6, 2025) | $41.44 |
Company Snapshot
Offers wireless and wireline communications, internet access, video, and a range of network solutions for consumers, businesses, and government clients.
Generates revenue through subscription-based service plans, equipment sales, and network access fees, leveraging a nationwide infrastructure.
Serves individual consumers, enterprises, and public sector organizations across the United States and internationally.
Verizon is a leading provider of communications and technology services, operating at national and global scale.
Foolish take
To start, let's admit what Verizon stock is -- and what it is not. In short, Verizon is a stock for income-oriented investors, seeking a way to generate cash with the possibility of modest growth.
In that context, Verizon has done what one might expect. Its ample dividend, which yields 6.5%, provides plenty of income for investors that need it. Meanwhile, its total return -- which combines its dividend yield with its stock price return -- has lagged the S&P 500.
For example, over the last decade, Verizon stock has generated a total return compound annual growth rate (CAGR) of 4.7%. Meanwhile, the S&P 500 has generated a total return CAGR of 15.0% over that same period.
In other words, Verizon hasn't kept pace with the broader market, but that's not surprising given its business model and the challenges the company faces.
One of the biggest challenges for Verizon is its balance sheet. Specifically, it has over $166 billion in net debt, which acts as a drag on its ability to return value to shareholders. Verizon's net debt has actually increased by 48% over the last decade, which makes it more difficult for the company to buy back shares, increase its dividend payment, or make strategic acquisitions.
The company's high debt load is one reason why growth-oriented investors should look elsewhere. Simply put, Verizon isn't going to be able to generate rapid growth. Rather, it will focus on generating cash, servicing its debt, and paying its generous dividend.
Therefore, Verizon remains a stock to consider, at least for income-seeking investors.
Glossary
13F AUM: The total value of assets under management reported in a fund's quarterly SEC Form 13F filing.
Transaction value: The estimated dollar amount involved in a specific buy or sell of securities.
Stake: The total number of shares or percentage ownership a fund holds in a particular company.
Fund AUM: The overall market value of assets managed by an investment fund.
Top holdings: The largest investments in a fund's portfolio, usually ranked by value.
Dividend yield: Annual dividend income expressed as a percentage of the stock's current price.
Subscription-based service plans: Ongoing contracts where customers pay regularly for continued access to services.
Network access fees: Charges paid by customers or partners to use a company's communication infrastructure.
Public sector organizations: Government agencies and entities that purchase goods or services.
TTM: The 12-month period ending with the most recent quarterly report.
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Jake Lerch has positions in Alphabet, Amazon, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Microsoft, and Nvidia. The Motley Fool recommends Verizon Communications and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
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