Some Broadridge Financial Solutions, Inc. (NYSE:BR) shareholders may be a little concerned to see that the President, Christopher Perry, recently sold a substantial US$3.6m worth of stock at a price of US$177 per share. That's a big disposal, and it decreased their holding size by 29%, which is notable but not too bad.
See our latest analysis for Broadridge Financial Solutions
The Last 12 Months Of Insider Transactions At Broadridge Financial Solutions
In the last twelve months, the biggest single sale by an insider was when the Executive Chairman, Richard Daly, sold US$9.1m worth of shares at a price of US$179 per share. That means that even when the share price was slightly below the current price of US$181, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 26% of Richard Daly's holding.
Broadridge Financial Solutions insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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Insider Ownership Of Broadridge Financial Solutions
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Broadridge Financial Solutions insiders own 0.5% of the company, currently worth about US$106m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Broadridge Financial Solutions Tell Us?
Insiders haven't bought Broadridge Financial Solutions stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But it is good to see that Broadridge Financial Solutions is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Broadridge Financial Solutions.
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For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.