Verizon's Insider Selling: A Smart Money Exit Signal?

The headline story is a stock climbing to new highs. The insider story is more nuanced. The real signal comes from what executives are doing with their own money, not the company's press releases.

Verizon's stock has indeed been on a tear, up 18.2% over the last 90 days and trading near its 52-week high of $47.575. That kind of run-up often invites a closer look at who is taking money off the table. The data shows a pattern of selective selling, with a notable outlier in a recent transaction.

Over the past three months, the net effect of insider trades has been a sale of $429,905.52. That figure follows a period of more significant selling earlier in the year, including multiple transactions by executives like Kyle Malady and Vandana Venkatesh. This isn't a blanket exit, but it's a consistent flow of shares out of the executive ranks, which can be a subtle red flag when the stock is being hyped.

The most recent action is a clear outlier. On February 2, 2026, executive vice president Joseph J. Russo sold 9,579 shares at a weighted average price of $44.88. The timing is critical: he sold at a price that was already near the stock's peak, a move that stands out against a backdrop of mostly non-selling by other insiders. This is the kind of transaction that makes you pause. When an insider sells while the company is celebrating growth, it often signals they see the near-term risk as outweighing the reward.

The bottom line is about alignment of interest. The stock's strong performance is a positive, but the pattern of insider selling-especially a recent, high-priced sale by a senior executive-suggests the smart money is taking some chips off the table. It's a reminder that skin in the game matters, and when the game is getting hot, even a single insider's exit can be a telling signal.

The Business Context: Strong Results vs. Selling Skin

The bullish narrative is built on solid ground. Verizon just posted a quarter that crushed expectations. The company added 616,000 monthly bill-paying wireless phone subscribers, its highest tally in six years, far outpacing the 417,250 additions expected. That kind of growth, fueled by aggressive holiday promotions, is exactly the kind of news that drives a stock higher. It's no surprise the company then raised its annual outlook, forecasting adjusted profit between $4.90 and $4.95 per share and annual free cash flow of at least $21.5 billion, both above market estimates.

Yet the stock's recent move suggests this good news is already in the price. Over the last 20 days, the shares have climbed 14.15%, a run that has pushed the stock near its 52-week high. In other words, the market has already rewarded the company for its strong results and raised guidance. This is the setup where insider selling becomes a more pointed signal. When the positive news is largely priced in, and the stock is trading at a premium, it's natural for executives with their own money at risk to consider locking in some gains.

The contradiction is clear. The business is performing well, and management is guiding higher. But the pattern of insider sales-especially a recent, high-priced exit by a senior executive-suggests a lack of full alignment with the current valuation. The smart money is taking chips off the table even as the company celebrates its best subscriber growth in years. It's a reminder that strong operational performance is necessary but not always sufficient for a stock to keep climbing. When the skin in the game is being shed, it's worth asking if the next leg up is already priced in.

Valuation & Market Metrics: Is the Stock Still Cheap?

The rally has made the stock look less cheap, but the core value metrics still point to a bargain. The market is pricing in the strong results and raised guidance, pushing the stock up 18.2% over the last 90 days. That run has compressed the dividend yield from a higher level, a key metric for income-focused investors. The stock now offers a forward dividend yield of 5.85%, down from its peak, which is a tangible cost of the recent move.

Yet the underlying valuation remains compelling. The stock trades at a forward P/E ratio of 9.88, a multiple that suggests the market is still discounting the company's earnings power. This is the kind of multiple that attracts institutional accumulation, the real smart money signal. While headline news drives short-term moves, 13F filings show where the whales are putting their money. A low P/E combined with a high yield is a classic setup for value investors, and it's likely why Verizon remains a staple in many large portfolios.

The tension here is between the stock's recent performance and its fundamental cheapness. The 18.2% pop over three months has certainly trimmed the yield, but it hasn't erased the value. The real question is whether the recent insider selling-particularly the high-priced exit by executive vice president Joseph J. Russo-signals that the smart money sees a better risk/reward elsewhere, even at a 9.88 P/E. For now, the valuation math still favors the stock, but the pattern of executives taking chips off the table at a peak price is a subtle warning that the easy money may be made.

Catalysts and Risks: What to Watch Next

The insider selling pattern sets the stage for a few key tests. The smart money is watching to see if management's skin in the game aligns with its raised guidance. The primary catalyst is what the company does with its projected annual free cash flow of at least $21.5 billion. Will that cash be deployed to increase dividends or buybacks? That's the real alignment check. A dividend hike or a substantial buyback program would signal confidence that the raised outlook is sustainable and that executives see value in the stock. Conversely, if the cash is used for debt reduction or modest returns, it could reinforce the cautionary signal from recent insider sales.

Another immediate watchpoint is any further insider sales, especially from the CEO or CFO. The recent high-priced sale by executive vice president Joseph J. Russo stands out as an outlier. If other top executives follow suit, particularly at the stock's current elevated levels, it would amplify the exit signal. The pattern of selective selling, while not a blanket sell-off, suggests a lack of full conviction at these prices. More sales would make the case that the smart money sees better opportunities elsewhere, even with a forward P/E of just 9.88.

The biggest risk, however, is operational. The company's subscriber growth surge was fueled by aggressive promotions, like four phone lines for $100 per month. That kind of intensity is hard to sustain. The primary risk is a peak in promotional spending and subscriber growth, which could pressure margins and future cash flow. If the fiber-driven growth story stalls, the high cash flow guidance could look ambitious. This is the fundamental vulnerability that insiders may be pricing in.

In short, the setup is clear. The stock has rallied on good news, but insiders are taking chips off the table. The next few quarters will show if management's actions match its bullish words. Watch the capital allocation decisions, monitor for more insider selling, and keep an eye on the sustainability of those promotional-driven subscriber gains. The smart money is waiting to see if the easy money is truly made.