Hock E Tan Takes Money Off The Table, Sells $33.96M In Broadcom Stock

Disclosed on September 25, Hock E Tan, President and CEO at Broadcom (NASDAQ: AVGO), executed a substantial insider sell as per the latest SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Thursday outlined that Tan executed a sale of 100,000 shares of Broadcom with a total value of $33,958,393.

During Friday's morning session, Broadcom shares down by 0.84%, currently priced at $333.28.

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.

Financial Insights: Broadcom

Revenue Growth: Over the 3 months period, Broadcom showcased positive performance, achieving a revenue growth rate of 22.03% as of 31 July, 2025. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Holistic Profitability Examination:

• Gross Margin: The company sets a benchmark with a high gross margin of 67.09%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): Broadcom's EPS reflects a decline, falling below the industry average with a current EPS of 0.88.

Debt Management: Broadcom's debt-to-equity ratio surpasses industry norms, standing at 0.88. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: A higher-than-average P/E ratio of 86.18 suggests caution, as the stock may be overvalued in the eyes of investors.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 27.13, 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): Broadcom's EV/EBITDA ratio stands at 51.05, surpassing industry benchmarks. This places the company in a position with a higher-than-average market valuation.

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

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The Impact of Insider Transactions on Investments

Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.

In the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

The Insider's Guide to Important Transaction Codes

Examining transactions, investors often concentrate on those unfolding in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates 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.