Insider Trades Appear to Send Strong Signals—But the Details Tell a Different Story
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy AVGO?
Source: Marketbeat
Insider Trading Trends: Recent insider trading activities at Broadcom and AppLovin show significant sales, with insiders selling approximately $88 million and $160 million in shares, respectively, raising concerns about potential bearish signals in the market.
Reasons for Sales: The sales by Broadcom insiders are primarily attributed to tax obligations related to restricted stock units (RSUs), while AppLovin's sales have been linked to a decline in stock value, which has fallen nearly 40% from its 52-week high.
Market Context: Despite the large volume of insider selling, the context suggests that these transactions may not necessarily indicate a lack of confidence in the companies, as they are often tied to tax strategies and scheduled sales rather than negative outlooks.
Company Performance: Both companies are facing challenges, with Broadcom experiencing significant insider selling and AppLovin struggling with a substantial drop in stock price, which has been exacerbated by ongoing issues in the mobile gaming sector.
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Analyst Views on AVGO
Wall Street analysts forecast AVGO stock price to rise
30 Analyst Rating
29 Buy
1 Hold
0 Sell
Strong Buy
Current: 300.680
Low
370.00
Averages
457.75
High
525.00
Current: 300.680
Low
370.00
Averages
457.75
High
525.00
About AVGO
Broadcom Inc. is a global technology firm that designs, develops, and supplies a range of semiconductors, enterprise software and security solutions. The Company operates through two segments: semiconductor solutions and infrastructure software. Its semiconductor solutions segment includes all of its product lines and intellectual property (IP) licensing. It provides a variety of radio frequency semiconductor devices, wireless connectivity solutions, custom touch controllers, and inductive charging solutions for mobile applications. Its infrastructure software segment includes its private and hybrid cloud, application development and delivery, software-defined edge, application networking and security, mainframe, distributed and cybersecurity solutions, and its FC SAN business. It provides a portfolio of software solutions that enable customers to plan, develop, automate, manage and secure applications across mainframe, distributed, mobile and cloud platforms.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Rising Demand for ASICs: Driven by Google's tensor processing units, the demand for application-specific integrated circuits is ramping up, with numerous projects increasing to support the growth of large language models, indicating strong market demand for AI technologies.
- Nvidia Server Architecture Expansion: Schafer anticipates that Nvidia's Grace Blackwell and Vera Rubin server architectures will exceed 75,000 units this year, with Vera Rubin's average selling price potentially approaching $7 million and its power management requirements being five times that of Grace Blackwell, benefiting Monolithic Power.
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See More
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- Surge in AI Semiconductor Revenue: Broadcom's AI semiconductor revenue skyrocketed by 106% in Q1 2026, reflecting the company's robust performance in the AI sector and potentially driving sustained growth in the future.
- Marvell's Rapid Growth: Marvell achieved record revenue of nearly $8.2 billion in fiscal 2026, a 42% increase, with earnings per share soaring by 81%, showcasing the company's rapid expansion potential in the market.
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See More
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