On August 28, 2023, Richard Daly, the Executive Chairman of Broadridge Financial Solutions Inc (BR, Financial), sold 8,297 shares of the company. This move is part of a series of insider sell transactions that have been taking place over the past year.
Broadridge Financial Solutions Inc is 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 percent 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.
Richard Daly has been with Broadridge Financial Solutions Inc for several years, providing strategic leadership and direction. His recent sell-off of shares is noteworthy and warrants a closer look.
Over the past year, Richard Daly has sold a total of 131,396 shares and has not made any purchases. This trend is mirrored in the company's overall insider transaction history, with 15 insider sells and no insider buys over the same period.
The insider's selling activities have not significantly impacted the stock's price, which was trading at $185.4 per share on the day of the recent sell. This gives Broadridge Financial Solutions Inc a market cap of $21.998 billion.
The company's price-earnings ratio stands at 35.21, higher than the industry median of 27.2 and also higher than the company’s historical median price-earnings ratio. This suggests that the stock is currently overvalued compared to its peers and its own historical performance.
The GuruFocus Value for Broadridge Financial Solutions Inc is $180.84, resulting in a price-to-GF-Value ratio of 1.03. This indicates that the stock is fairly valued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is 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.
In conclusion, the insider's recent sell-off of Broadridge Financial Solutions Inc shares does not seem to have a significant impact on the stock's price. However, investors should keep an eye on the company's valuation metrics and the ongoing insider sell trend.
