President and CEO Of Broadcom Sold $10.49M In Stock

Hock E Tan, President and CEO at Broadcom AVGO, disclosed an insider sell on June 25, according to a recent SEC filing.

What Happened: Tan's decision to sell 40,000 shares of Broadcom was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value of the sale is $10,486,920.

Tracking the Thursday's morning session, Broadcom shares are trading at $268.38, showing a up of 1.41%.

Get to Know Broadcom Better

Broadcom is the sixth-largest semiconductor company globally and has expanded into various software businesses, with over $30 billion in annual revenue. It sells 17 core semiconductor product lines across wireless, networking, broadband, storage, and industrial markets. It is primarily a fabless designer but holds some manufacturing in-house, like for its best-of-breed FBAR filters that sell into the Apple iPhone. In software, it sells virtualization, infrastructure, and security software to large enterprises, financial institutions, and governments.Broadcom is the product of consolidation. Its businesses are an amalgamation of former companies like legacy Broadcom and Avago Technologies in chips, as well as Brocade, CA Technologies, and Symantec in software.

Key Indicators: Broadcom's Financial Health

Positive Revenue Trend: Examining Broadcom's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 20.16% as of 30 April, 2025, showcasing a substantial increase in top-line earnings. When compared to others in the Information Technology sector, the company excelled with a growth rate higher than the average among peers.

Interpreting Earnings Metrics:

• Gross Margin: With a high gross margin of 67.96%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): Broadcom's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 1.05.

Debt Management: Broadcom's debt-to-equity ratio stands notably higher than the industry average, reaching 0.97. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 96.59, Broadcom's stock is perceived as being overvalued in the market.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 22.4, Broadcom's stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio of 43.07 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

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Uncovering the Importance of Insider Activity

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.

In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Important Transaction Codes

Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Broadcom's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.