Broadridge Financial Solutions Insiders Sell US$12m Of Stock, Possibly Signalling Caution

Many Broadridge Financial Solutions, Inc. (NYSE:BR) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, if numerous insiders are selling, shareholders should investigate more.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Broadridge Financial Solutions

The Last 12 Months Of Insider Transactions At Broadridge Financial Solutions

In fact, the recent sale by Christopher Perry was the biggest sale of Broadridge Financial Solutions shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$212. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. 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.

Broadridge Financial Solutions insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Broadridge Financial Solutions better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insiders At Broadridge Financial Solutions Have Sold Stock Recently

The last three months saw significant insider selling at Broadridge Financial Solutions. Specifically, insiders ditched US$5.4m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Does Broadridge Financial Solutions Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Broadridge Financial Solutions insiders own 0.5% of the company, worth about US$124m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Broadridge Financial Solutions Tell Us?

Insiders sold Broadridge Financial Solutions shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But since Broadridge Financial Solutions is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. In terms of investment risks, we've identified 2 warning signs with Broadridge Financial Solutions and understanding these should be part of your investment process.

Of course Broadridge Financial Solutions may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.