Finance

What Recent Ownership Trends Suggest About Verizon Communications Inc. (VZ)’s Future Performance

Recent insider trends for Verizon Communications Inc. (NYSE:VZ) have caught the attention of investors. Insider data is useful because it can reveal what a company’s executives and largest shareholders feel about a stock. In this case, the data has some interesting things to say about how VZ might perform in the future.

Institutions own 64.44% of Verizon Communications Inc. (VZ)’s shares. The total value of these holdings, in millions, is $133,853. Among active positions in the latest quarter, 860 holders increased their positions by a total of 138.43 million shares, 1,008 holders decreased the positions by a total of 93.76 million shares, and 147 holders held their positions. This works out to a net increase in ownership of 44.67 million shares, and suggests that institutions are feeling bullish about the stock.

Among new and sold out positions, 88 holders initiated new positions by a total of 17.73 million shares and 93 holders exited their positions by a total of 6.22 million shares. This nets out to an increase of 11.51 million shares and is a bullish sign for VZ.

In the last three months, insiders executed a total of 4 trades.4 were sells. Insider ownership decreased by a total of 3940 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 284765 shares.



The analysis of insider buying and selling trends can be extended to the aggregate level. Short interest, which represents the number of a stock’s shares currently being shorted, captures what the market as a whole feels about a stock. Verizon Communications Inc. (NYSE:VZ)’s short interest is 33.71 million shares, or 0.83% of the float. This represents a decrease of -7% 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.

Ownership trends and trading patterns can be useful tools for predicting a stock’s performance, but it’s also important to consider the technicals in order to form a more comprehensive view. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that VZ is a buy, which implies that VZ is expected to outperform the market based on prior trading patterns.

Conclusion




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.

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