How Much Are Broadridge Financial Solutions, Inc. (NYSE:BR) Insiders Taking Off The Table?
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We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Broadridge Financial Solutions, Inc. (NYSE:BR).
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
See our latest analysis for Broadridge Financial Solutions
The Last 12 Months Of Insider Transactions At Broadridge Financial Solutions
Corporate Senior Vice President of Investor Communication Solutions Robert Schifellite made the biggest insider sale in the last 12 months. That single transaction was for US$1.7m worth of shares at a price of US$116 each. So we know that an insider sold shares at around the present share price of US$99.60. They could have a variety of motivations for selling, but it’s still not particularly encouraging to see. We usually pause to reflect on the potential that a stock has a high valuation, if insiders have been selling at around the current price.
In the last twelve months insiders netted US$7.4m for 64.52k shares sold. In total, Broadridge Financial Solutions insiders sold more than they bought over the last year. The sellers received a price of around US$115, on average. We don’t gain much confidence from insider selling near the recent share price. While some insiders have decided to take some money off the table, we wouldn’t put too much weight on this fact. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of Broadridge Financial Solutions
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it’s a good sign if insiders own a significant number of shares in the company. Broadridge Financial Solutions insiders own about US$71m worth of shares. That equates to 0.6% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Broadridge Financial Solutions Insiders?
The fact that there have been no Broadridge Financial Solutions insider transactions recently certainly doesn’t bother us. We don’t take much encouragement from the transactions by Broadridge Financial Solutions insiders. But we do like the fact that insiders own a fair chunk of the company. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Broadridge Financial Solutions.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.
