Several key insiders at Broadcom (AVGO) sold a significant amount of the company’s shares, totaling $18.51 million last week. According to the recent SEC filing, President and CEO Hock Tan divested 45,000 shares of AVGO on December 24, at an average price of $239.96 per share, for a total transaction value of $10.8 million.
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Further, Mark David Brazeal, chief legal and corporate affairs officer at AVGO, sold 20,168 shares of the company, worth $4.82 million. Also, CFO and chief accounting officer, Kirsten M. Spears, offloaded 12,570 shares for a total value of $2.89 million.
While insider selling can have various reasons, such as personal financial needs, portfolio diversification, or financial planning needs, it can also be seen as a bearish signal.
Bearish Insider Sentiment for AVGO Stock
It is worth noting that the above-mentioned executives are not the only ones who reduced their stake in the company. Based on other informative insider transactions from the last three months, corporate insiders have sold $42.1 million worth of Broadcom stock. Overall, TipRanks’ Insider Trading Activity Tool shows that insider confidence in the stock is currently Very Negative.
Investors may benefit from keeping an eye on transactions made by key insiders, as these transactions typically reflect their confidence in the company’s prospects. Interestingly, TipRanks offers daily insider transactions as well as a list of top corporate insiders. It also provides a list of hot stocks that boast either a Very Positive or Positive insider confidence signal.
Who Is the Best Analyst Covering AVGO Stock?
According to TipRanks, Top-rated analyst, Vivek Arya from Bank of America Securities, has witnessed 100% success in his 24 ratings on Broadcom. Importantly, copying Arya’s trades for a year would yield an average return of 75.01% per trade.
On December 16, Arya reiterated a Buy rating on the stock and also raised his price target to $250 from $215. Further, the analyst boosted his FY25 and FY26 EPS forecasts due to optimism about AI demand.
What Is the Price Target for Broadcom?
Turning to Wall Street, AVGO stock has a Strong Buy consensus rating based on 23 Buys and three Holds assigned in the last three months. At $233.33, the average Broadcom price target implies a 3.48% downside potential. Shares of the company have gained 119.49% year-to-date.
