Broadcom Inc (AVGO, Financial), a global technology leader that designs, develops, and supplies a broad range of semiconductor and infrastructure software solutions, has reported an insider sell according to a recent SEC filing. President and CEO Hock Tan sold 2,000 shares of the company on April 2, 2024. The transaction was disclosed in a filing with the Securities and Exchange Commission, which can be accessed through this SEC Filing.
Over the past year, the insider has sold a total of 42,000 shares of Broadcom Inc and has not made any purchases of the stock. The insider transaction history for Broadcom Inc shows a pattern of more insider sells than buys over the past year, with a total of 17 insider sells and only 2 insider buys.
On the date of the insider's most recent transaction, shares of Broadcom Inc were trading at $1,312.25, giving the company a market capitalization of $624.23 billion. The price-earnings ratio of the stock stands at 49.93, which is above both the industry median of 33.11 and the historical median price-earnings ratio for the company.
The stock's valuation metrics indicate that Broadcom Inc is currently trading at a significant premium. With a share price of $1,312.25 and a GuruFocus Value of $773.30, the price-to-GF-Value ratio is 1.7, suggesting that the stock is Significantly Overvalued according to GuruFocus's intrinsic value estimate. The GF Value is calculated based on historical trading multiples, a GuruFocus adjustment factor, and future business performance estimates from Morningstar analysts.
The insider trend image above provides a visual representation of the buying and selling activities of insiders over time, which can offer insights into the company's internal perspective on the stock's valuation.
The GF Value image further illustrates the disparity between the current share price and the estimated intrinsic value, reinforcing the notion that the stock may be overvalued at present.
Investors often monitor insider transactions as they can provide valuable insights into the company's performance and insider perspectives on the stock's value. The recent sell by Broadcom Inc's President and CEO is one such transaction that market participants may consider as part of their investment research.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
