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A Verizon Communications Inc. (NYSE:VZ) insider lowered their holding by 26% earlier this year

Insiders were net sellers of Verizon Communications Inc.'s (NYSE:VZ ) stock during the past year. That is, insiders sold more stock than they bought.

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

The Last 12 Months Of Insider Transactions At Verizon Communications

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. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$39.02. So it may not tell us anything about how insiders feel about the current share price. 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. By clicking on the graph below, you can see the precise details of each insider transaction!

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insider-trading-volume

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Verizon Communications Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Verizon Communications insiders own about US$29m worth of shares. That equates to 0.02% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Verizon Communications Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Verizon Communications shares in the last quarter. We don't take much encouragement from the transactions by Verizon Communications insiders. But we do like the fact that insiders own a fair chunk of the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - Verizon Communications has 2 warning signs we think 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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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