By selling US$1.2m worth of Verizon Communications Inc. (NYSE:VZ) stock at an average sell price of US$49.77 over the last year, insiders seemed to have made the most of their holdings. The company's market worth decreased by US$7.3b over the past week after the stock price dropped 4.2%, although insiders were able to minimize their losses
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Verizon Communications
Verizon Communications Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the , Tamara Erwin, for US$1.2m worth of shares, at about US$49.77 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$39.52). So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Tamara Erwin.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Does Verizon Communications Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that Verizon Communications insiders own 0.02% of the company, worth about US$29m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Verizon Communications Insiders?
It doesn't really mean much that no insider has traded Verizon Communications shares in the last quarter. Our analysis of Verizon Communications insider transactions leaves us cautious. But it's good to see that insiders own shares in the company. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 2 warning signs for Verizon Communications you should be aware of.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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