On August 10, 2023, President Christopher Perry of Broadridge Financial Solutions Inc (BR, Financial) sold 12,057 shares of the company's stock. This move comes as part of a series of transactions by Perry over the past year, during which he has sold a total of 15,759 shares and made no purchases.
Broadridge Financial Solutions Inc is a leading provider of investor communications and technology-driven solutions to banks, broker-dealers, asset and wealth managers, and corporate issuers. The company's infrastructure underpins proxy voting services for over 50% of public companies and mutual funds globally, and processes on average more than U.S. $10 trillion in fixed income and equity securities trades per day.
The insider transaction history for Broadridge Financial Solutions Inc shows a trend of more sells than buys over the past year. There have been 14 insider sells and 0 insider buys in total. This could be an indication of how insiders view the company's current valuation.
On the day of Perry's recent sell, shares of Broadridge Financial Solutions Inc were trading for $180.49 each, giving the company a market cap of $21.49 billion. The price-earnings ratio stands at 34.39, which is higher than both the industry median of 27.68 and the company's historical median price-earnings ratio.
According to the GuruFocus Value, which is an intrinsic value estimate based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates from Morningstar analysts, Broadridge Financial Solutions Inc is fairly valued. The stock's price-to-GF-Value ratio is 1, with a GF Value of $180.59.
Insider sells can sometimes be a red flag for investors, but it's important to consider the context. In this case, Perry's sell comes after a year of no insider buys and multiple sells. However, the company's valuation according to the GuruFocus Value suggests that the stock is fairly valued. Investors should keep an eye on future insider transactions and other indicators to get a comprehensive understanding of the company's financial health and prospects.
