Some Broadcom Inc. (NASDAQ:AVGO) shareholders may be a little concerned to see that the Chief Legal Officer, Mark Brazeal, recently sold a whopping US$560k worth of stock at a price of US$280 per share. That sale reduced their total holding by 21% which is hardly insignificant, but far from the worst we've seen.
Broadcom Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the CFO & Secretary, Thomas Krause, sold US$4.3m worth of shares at a price of US$298 per share. That means that an insider was selling shares at around the current price of US$288. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
Over the last year, we note insiders sold 20494 shares worth US$6.1m. Broadcom insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Broadcom insiders own about US$2.2b worth of shares (which is 1.9% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Broadcom Insiders?
An insider hasn't bought Broadcom stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Broadcom.
But note: Broadcom may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
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If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.