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Verizon Communications Inc.'s (NYSE:VZ) stock rose 3.7% last week, but insiders who sold US$1.2m worth of stock over the last year are probably in a more advantageous position. Holding on to stock would have meant their investment would be worth less now than it was at the time of sale. Thus selling at an average price of US$49.77, which is higher than the current price, may have been the best decision.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Verizon Communications
The Last 12 Months Of Insider Transactions At Verizon Communications
Over the last year, we can see that the biggest insider sale was by the Advisor, 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. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$38.41. So it may not shed much light on insider confidence at current levels. Tamara Erwin was the only individual insider to sell over the last year.
The chart below shows insider transactions (by companies and individuals) over the last year. 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).
Insider Ownership Of Verizon Communications
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Verizon Communications insiders own 0.02% of the company, worth about US$29m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Verizon Communications Tell Us?
The fact that there have been no Verizon Communications insider transactions recently certainly doesn't bother us. 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. Every company has risks, and we've spotted 2 warning signs for Verizon Communications you should know about.