Recent insider trends for Verizon Communications Inc. (NYSE:VZ) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on VZ is anything to go by, investors should pay attention.
Institutions own 63.26% of Verizon Communications Inc. (VZ)’s shares. The total value of these holdings, in millions, is $128,770. Among active positions in the latest quarter, 891 holders increased their positions by a total of 121.4 million shares, 990 holders decreased the positions by a total of 129.67 million shares, and 152 holders held their positions. This works out to a net decrease in ownership of 8.27 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 95 holders initiated new positions by a total of 10.97 million shares and 112 holders exited their positions by a total of 12.22 million shares. This nets out to a decrease of 1.25 million shares and is another bearish sign for VZ.
In the last three months, insiders executed a total of 3 trades. 3 were sells. Insider ownership decreased by a total of 1830 shares, which suggests that VZ’s key executives are feeling less optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: insiders executed 28 sells, and ownership decreased by a net of 285910 shares.
Short interest is another tool that analysts use to gauge investor sentiment. It represents the number of a stock’s shares that are being shorted by investors. Verizon Communications Inc. (NYSE:VZ)’s short interest is 37.12 million shares, or 0.91% of the float. This represents a decrease of -0% in the number of shares being shorted compared to the previous reading, and implies that investors felt less pessimistic about the stock during the past two weeks.
Given what the insider ownership patterns are saying, it makes sense to consider the technicals to see if these pieces of information reach the same conclusion about the outlook for VZ. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that VZ is a Strong buy, which implies that VZ is expected to outperform the market based on prior trading patterns.
Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bearish. Technical indicators (also) suggest that Verizon Communications Inc. (NYSE:VZ) is undervalued.