Are Insiders Selling Broadridge Financial Solutions, Inc. (NYSE:BR) Stock?

March 26, 2021
  •  Updated
August 07, 2022
NYSE:BR
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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. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. 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's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.

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. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

View 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 insider, James Young, for US$1.8m worth of shares, at about US$139 per share. That means that an insider was selling shares at slightly below the current price (US$148). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was 63% of James Young'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 want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NYSE:BR Insider Trading Volume March 26th 2021

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders at Broadridge Financial Solutions Have Sold Stock Recently

The last quarter saw substantial insider selling of Broadridge Financial Solutions shares. Specifically, Corporate VP & General Counsel Adam Amsterdam ditched US$151k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Does Broadridge Financial Solutions 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. It appears that Broadridge Financial Solutions insiders own 0.5% of the company, worth about US$100m. 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?

An insider sold Broadridge Financial Solutions shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But since Broadridge Financial Solutions is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 3 warning signs with Broadridge Financial Solutions and understanding these should be part of your investment process.

But note: Broadridge Financial Solutions 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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