Shares of Broadcom (AVGO, Financial) fell 1% on Tuesday, hitting an intraday low of $234. This was after the news of insider selling, which has worried investors. According to recent SEC filings, Broadcom executives recently made several large transactions. On December 24, Mark David Brazeal, Chief Legal and Compliance Officer, offloaded 20,168 shares at an average cost of $238.79, minting $4.82 million. After the transaction, Brazeal held 321,660 shares, a 5.9 percent drop from his stake.
On the same day, Broadcom CEO Hock E Tan also sold 45,000 shares at $239.96 a piece for a total of $10.8 million. Tan's holdings fell by 5.07 % with this sale, and they now own 842,836 shares, valued at $202.25M. She later sold 15,000 shares at $226.68 apiece at prices that day on December 23, worth $3.4 million. Overall, the 6,460 shares remain an ownership stake for Vavra that has declined 69.9%.
While insider selling is not uncommon, it always brings questions about the company's future purposes. While Broadcom has done well lately, with its earnings and dividends looking strong, these transactions could signal a case of too soon by top executives. As Broadcom enters into the new year, investors will be waiting to see what further disclosures or market reactions might emerge.
