TLDR
- Two Broadcom insiders sold $10.2M in stock on July 8, even as AVGO gained 4.8% that day.
- Chief Legal Officer Mark Brazeal sold 25,000 shares for ~$9.48M; Director Gayla Delly sold 1,890 shares for ~$728K.
- Both insiders still hold large stakes — Brazeal retains ~$83.4M worth of AVGO stock.
- Analysts remain bullish, with a Strong Buy consensus and an average price target of $513.29, implying ~28% upside.
- The sales follow Broadcom’s $30B chip deal with Apple announced last week.
Two Broadcom insiders offloaded over $10 million in stock on July 8, just as AVGO was climbing 4.8% on the day. The sales grabbed attention, but the picture is more nuanced than a straight-up red flag.
Mark David Brazeal, Broadcom’s Chief Legal & Corporate Affairs Officer, sold 25,000 shares at a weighted average price of $379.19 per share, netting roughly $9.48 million. That reduced his stake by 10.2%, though he still holds 219,989 shares — worth about $83.4 million.
Director Gayla Delly also trimmed her position, selling 1,890 shares for $728,368, cutting her stake by 5.69%. She still owns 31,326 AVGO shares, valued at around $12.07 million.
Both disclosures were filed via Form 4 with the SEC on July 10.
The timing is worth noting. The sales came shortly after Apple and Broadcom announced a $30 billion chip deal. Under the multi-year agreement running through 2031, Broadcom will produce over 15 billion U.S.-made chips for use in Apple products. Broadcom will also invest $1.5 billion to upgrade its Fort Collins, Colorado facility.
Insider sales don’t always mean trouble. They’re often tied to personal financial planning or tax considerations. Still, TipRanks currently gives AVGO a Very Negative Insider Confidence Signal, based on $26.6 million in informative sell transactions over the past three months.
Wall Street Isn’t Blinking
Despite the insider activity, analyst sentiment hasn’t shifted. William Blair’s Sebastien Naji held his Buy rating, saying Broadcom still offers a solid risk/reward setup. He pointed to growing demand for AI chips and networking products from cloud heavyweights like Amazon, Microsoft, and Google.
JPMorgan’s Harlan Sur also kept his Buy rating after meeting with Broadcom’s management. He noted that demand for custom AI chips and networking products is growing fast, with major cloud customers building out AI infrastructure. Management flagged a stronger long-term Apple relationship and progress on AI chip work for customers including OpenAI.
Jefferies reiterated a Buy with a $550 price target, citing improving AI chip momentum.
On the other side, Erste Group downgraded AVGO to Hold, pointing to valuation concerns after the recent rally.
By the Numbers
Broadcom opened at $399.97 on Monday. The stock has a 52-week range of $269.58 to $495.00 and a market cap of around $1.90 trillion. AVGO is up nearly 16% year-to-date.
The company’s last earnings report, released June 3, showed EPS of $2.44, beating estimates of $2.40. Revenue came in at $22.19 billion — up 47.9% year-over-year and just ahead of the $22.13 billion consensus.
The consensus price target across analysts sits at $493.24 to $513.29 depending on the aggregator, with the overall rating holding at Moderate Buy to Strong Buy. Institutional ownership stands at 76.43%, with Vanguard holding over 482 million shares and State Street holding 190 million.
Broadcom also paid a quarterly dividend of $0.65 per share on June 30, representing an annualized yield of 0.7%.
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