OLD National Bancorp IN has reduced its holdings in Verizon Communications Inc, America’s leading 4G LTE and 5G wireless network provider by 2.4%, according to the company’s most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 256,166 shares of the cell phone carrier’s stock after selling 6,197 shares during the period, with OLD National Bancorp IN’s holdings in Verizon Communications worth $10,093,000 as of its most recent filing with the Securities and Exchange Commission. This comes amid a flurry of stock sales from key insiders at Verizon Communications.
The confidence exuded by high-ranking employees within a company often motivates shareholders to take similar actions. This appears to be the case with Verizon Communications; the CEO Kyle Malady sold 6,226 shares of the stock in a transaction on Wednesday March 15th alone. What is startling is that shortly thereafter EVP Craig L. Silliman also sold off some of his stock shareholdings in a strikingly similar move less than a month later on Monday April 10th.
These mass sell-offs indicate an apparent decrease in confidence among executives at Verizon Communications. They are acting as if there might be additional turmoil lying ahead for what is already an underperforming corporation.
While insider trading can certainly provide insight into how insiders perceive their companies’ prospects ; whether it is positive or negative , investors should keep this information in perspective when making investment decisions as “what one person thinks”is not enough reason for anyone else to make major financial decisions.Investors should still conduct their personal research and familiarize themselves thoroughly with prospectus offered by privileged organizations such as securities exchange commission before committing monetary assets into any market position.
Shares of NYSE VZ traded up $0.17 during midday trading on Friday, hitting $37.36 which indicates little fluctuation.This could possibly show that shareholders remain uncertain in their perception of the stock and therefore no significant change is expected. Verizon Communications has a current market capitalization value of $156.91 billion, with a price-to-earnings ratio of 7.35, a price-to-earnings-growth ratio of 2.00 and a beta of 0.36.
Overall it appears that the lacklustre performance by the telecommunications giant has left insiders and investors feeling uneasy about its future performance potential , or perhaps instead there could be other reasons for the mass sell offs at Verizon. What does seem clear is that the company should take immediate measures to improve investor confidence if it wishes to avoid further downsides concerning market positioning or long term growth potential.
Verizon Sees Stake Changes from Institutional Investors and Insider Selling, Maintains Dividend Reliability
Verizon Communications, a major player in the telecommunications industry, has recently seen additions to and reductions of stakes by institutional investors. The Vanguard Group Inc. increased its stake in Verizon by 1.1% during the third quarter, while BlackRock Inc. increased its position by 1.0%, State Street Corp by 0.8%, Charles Schwab Investment Management Inc. by 5.2%, and Dimensional Fund Advisors LP by 11.4% during the same period.
The subject of numerous recent analyst reports, Verizon received an “outperform” rating in a report from Oppenheimer with a target price of $46 per share, while Royal Bank of Canada lowered its price target from $42 to $40 and issued a “sector perform” rating on the stock back in January of this year.
In regards to insider trading activities at Verizon, CEO Kyle Malady sold over 6,000 shares of the company’s stock on two separate occasions for over $228,431.
Although earnings per share for the quarter ending January 24th were less than expected at $1.19 per share rather than the projected $1.20 per share, Verizon’s revenue was up compared to that time last year.
And even though there have been fluctuations among institutional investors and some insider selling taking place, investors can still rely on Verizon for dividends: as stated in a recent announcement from the company, investors who owned stock as of April 10th will receive a quarterly dividend payment of $0.6525 per share on May 1st.