How Many Verizon Communications Inc. (NYSE:VZ) Shares Have Insiders Sold, In The Last Year?

We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Verizon Communications Inc. (NYSE:VZ).

Do Insider Transactions Matter?

It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company‚Äôs stock when the firm is about to reveal new agreements with customers and suppliers’.

Check out our latest analysis for Verizon Communications

Verizon Communications Insider Transactions Over The Last Year

The insider, Lowell McAdam, made the biggest insider sale in the last 12 months. That single transaction was for US$16m worth of shares at a price of US$56.72 each. So it’s clear an insider wanted to take some cash off the table, even below the current price of US$60.24. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don’t know for sure what they think of the stock price. This single sale was just 44% of Lowell McAdam’s stake.

Verizon Communications insiders didn’t buy any shares over the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

NYSE:VZ Recent Insider Trading, February 11th 2020
NYSE:VZ Recent Insider Trading, February 11th 2020

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Verizon Communications Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 0.03% of Verizon Communications shares, worth about US$78m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

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. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.