Yahoo Finance With Verizon Communications Inc.'s (NYSE:VZ)) price down 9.4% this week, insiders might find some solace having sold US$1.2m worth of shares earlier this year.
Insiders at Verizon Communications Inc. (NYSE:VZ) sold US$1.2m worth of stock at an average price of US$49.77 a share over the past year, making the most of their investment. The company's market worth decreased by US$16b over the past week after the stock price dropped 9.4%, although insiders were able to minimize their losses
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Verizon Communications
Verizon Communications Insider Transactions Over The Last Year
The , Tamara Erwin, made the biggest insider sale in the last 12 months. That single transaction was for US$1.2m worth of shares at a price of US$49.77 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$35.68. So it is hard to draw any strong conclusion from it. Tamara Erwin was the only individual insider to sell shares in the last twelve months.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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).
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Verizon Communications insiders own about US$26m worth of shares. That equates to 0.02% of the company. 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?
There haven't been any insider transactions in the last three months -- that doesn't mean much. We don't take much encouragement from the transactions by Verizon Communications insiders. But it's good to see that insiders own shares in the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 2 warning signs for Verizon Communications that deserve your attention before buying any shares.
But note: Verizon Communications may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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