Have Insiders Sold Broadcom Shares Recently?

We wouldn't blame Broadcom Inc. (NASDAQ:AVGO) shareholders if they were a little worried about the fact that Hock Tan, the President recently netted about US$26m selling shares at an average price of US$173. That's a big disposal, and it decreased their holding size by 10%, which is notable but not too bad.

View our latest analysis for Broadcom

The Last 12 Months Of Insider Transactions At Broadcom

Notably, that recent sale by Hock Tan is the biggest insider sale of Broadcom shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$173. While insider selling is a negative, to us, it is more negative if the shares are sold 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.

In the last year Broadcom insiders didn't buy any company stock. You can see the insider transactions (by companies and 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!

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Does Broadcom Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Broadcom insiders own about US$10b worth of shares (which is 1.3% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Broadcom Insider Transactions Indicate?

Insiders sold Broadcom shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. 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. 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. At Simply Wall St, we found 4 warning signs for Broadcom that deserve your attention before buying any shares.

Of course Broadcom 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.