Broadridge Financial Solutions Insiders Sold US$10m Of Shares Suggesting Hesitancy

The fact that multiple Broadridge Financial Solutions, Inc. (NYSE:BR) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. 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.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Broadridge Financial Solutions

Broadridge Financial Solutions Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the President, Christopher Perry, for US$3.7m worth of shares, at about US$213 per share. That means that an insider was selling shares at slightly below the current price (US$226). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 29% of Christopher Perry's holding.

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

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insiders At Broadridge Financial Solutions Have Sold Stock Recently

The last quarter saw substantial insider selling of Broadridge Financial Solutions shares. In total, insiders dumped US$1.9m 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.

Insider Ownership Of Broadridge Financial Solutions

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Broadridge Financial Solutions insiders own 0.5% of the company, currently worth about US$123m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all 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. On the plus side, Broadridge Financial Solutions makes money, and is growing profits. 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. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 2 warning signs for Broadridge Financial Solutions that deserve your attention before buying any shares.

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.