On August 18, 2023, Richard Daly, the Executive Chairman of Broadridge Financial Solutions Inc (BR, Financial), sold 51,049 shares of the company. This move is part of a series of insider sell transactions that have been taking place over the past year.
Richard Daly has been a significant figure in Broadridge Financial Solutions Inc, a leading provider of investor communications and technology-driven solutions to banks, broker-dealers, asset and wealth managers, and corporate issuers. The company's infrastructure underpins proxy voting services for over 50% of public companies and mutual funds globally, and processes on average more than U.S. $10 trillion in fixed income and equity trades per day.
Over the past year, the insider has sold a total of 126,017 shares and has not made any purchases. This trend is consistent with the overall insider transaction history of Broadridge Financial Solutions Inc, which shows zero insider buys and 13 insider sells over the past year.
The stock was trading at $178.93 per share on the day of the insider's recent sell, giving the company a market cap of $21.016 billion. The price-earnings ratio stands at 33.64, which is higher than both the industry median of 27.07 and the company's historical median price-earnings ratio.
The GF Value of Broadridge Financial Solutions Inc is $180.54, resulting in a price-to-GF-Value ratio of 0.99. This suggests that the stock is fairly valued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at, a GuruFocus adjustment factor based on the company’s past returns and growth, and future estimates of business performance from Morningstar analysts.
The insider's sell transactions over the past year, coupled with the absence of insider buys, may raise questions among investors. However, it's important to note that insider sell transactions do not necessarily indicate a negative outlook for the company. The insider may have personal financial needs or other reasons for selling the shares. Furthermore, the stock's price-to-GF-Value ratio suggests that it is fairly valued, indicating that the stock price is in line with the company's intrinsic value.
Investors should always consider the broader context and not base their investment decisions solely on insider transactions. It's crucial to analyze the company's financial health, market position, and growth prospects, among other factors.
