Broadcom Insiders Sell $284M in Shares as AI Revenue Soars
Broadcom insiders net-sold $283.70 million in open-market shares over the past 90 days, led by co-founder Henry Samueli and Chief Legal Officer Mark Brazeal, even as the company posted 47.9% revenue g
Broadcom Insiders Sell $284M in Shares as AI Revenue Soars
NEW YORK, July 27 —
Broadcom's quarterly earnings cadence has become almost predictable. Beat estimates, file the 8-K, move on. When the company filed its latest earnings disclosure with the SEC on June 3, 2026, analysts found another quarter of solid execution. What the earnings filings did not capture was a parallel stream of Form 4 disclosures: $283.70 million in net open-market insider sales against $0.37 million in purchases over the past 90 days. The company's co-founder and its chief legal officer were both sellers, and the prices at which they sold sit close to where the stock trades today.
- Trailing twelve-month revenue: $75.46 billion, up 47.9% year over year
- Net insider selling over 90 days: $283.70 million sold vs. $0.37 million purchased
- Analyst consensus price target: $525.44, versus a current share price of $381.92
The Selling Pattern
The largest individual transaction belongs to co-founder and Director Henry Samueli. On June 24, 2026, he sold 53,722 shares at $385.57 per share, totaling $20.71 million in a single open-market transaction. The only insider purchase across the entire 90-day window came from Director Harry L. You, who bought 1,000 shares for $0.37 million on June 11 — a rounding error against the broader pattern.
Chief Legal and Corporate Affairs Officer Mark David Brazeal ran a more systematic program. Three tranches, each of exactly 25,000 shares: $9.68 million on June 25 at $387.00 per share; $9.48 million on July 8 at $379.19; and $10.03 million on July 10 at $401.33. The uniform block size across three separate dates reads less like opportunistic selling and more like a structured program, though the total of approximately $29.2 million from a single officer in six weeks is not a small number regardless of the mechanism.
Insiders sell for reasons that have nothing to do with corporate outlook: tax obligations, diversification, estate planning. The harder question is whether $283.70 million in net sales concentrated among a co-founder and the company's top legal officer, at prices between $379 and $401, is real signal or routine noise for a $1.8 trillion company with a highly appreciated equity base.
What the Business Is Actually Producing
Strip away the Form 4 activity and the operating fundamentals resist criticism. Trailing twelve-month revenue of $75.46 billion represents 47.9% year-over-year growth. Gross margin sits at 76.3%. Free cash flow over the trailing period totals $27.21 billion. Broadcom has beaten consensus EPS estimates in each of its last three reported quarters: $1.69 actual versus $1.66 estimated, then $1.95 versus $1.87, then $2.05 versus $2.02. That is not a company struggling to justify its multiple. That is a company consistently outrunning what analysts expect.
The growth engine is the VMware integration combined with AI infrastructure positioning. Both have identifiable runway. A 76.3% gross margin on $75 billion in revenue is a software-like profile wrapped inside a semiconductor company, which is precisely why the valuation conversation requires care.
The Gap the Consensus Is Betting On
At $381.92 per share, Broadcom trades at a forward price-to-earnings ratio of 19.6x and a market capitalization of approximately $1.82 trillion. The consensus analyst price target of $525.44 implies roughly 37% upside from current levels. For a company this large, a 37% consensus gap is significant. See the full DCF model and price target →
A 19.6x forward multiple is not extended by historical standards for a company generating $27.2 billion in annual free cash flow with software-driven margins. The reasonable interpretation of the analyst target is that the AI infrastructure cycle still has real unpriced upside in Broadcom's revenue mix. The less comfortable interpretation is that consensus targets move slowly and the stock price has already done some of that discounting work.
What to Watch
The neutral stance here rests on a specific tension that the next quarterly earnings event will help resolve. Broadcom's fundamentals support a bullish case: consistent beats, accelerating revenue growth, $27.2 billion in free cash flow, and a consensus 37% above current prices. The countervailing factor is $283.70 million in net insider selling, led by the company's co-founder and its chief legal officer at prices very close to where the stock currently sits.
What shifts the view bullish: another EPS beat with raised forward guidance at the next quarterly release, or a stabilization in insider selling at current levels. What shifts it bearish: a guidance reduction, margin compression in the VMware integration, or any signal that hyperscaler AI infrastructure capex is decelerating. Until one of those data points arrives, the Form 4 filings and the earnings 8-K are telling different stories about the same company, and both deserve to be taken seriously.
Basis Report is independent research for informational purposes. It is not investment advice and not a recommendation to buy or sell any security.
Frequently Asked Questions
Why are Broadcom insiders selling so much stock?
Broadcom insiders net-sold $283.70 million in open-market shares against $0.37 million in purchases over the past 90 days. The largest sellers were co-founder and Director Henry Samueli, who sold 53,722 shares for $20.71 million on June 24, and Chief Legal Officer Mark Brazeal, who sold three tranches of 25,000 shares each between June 25 and July 10. Insiders commonly sell for tax planning, diversification, or estate reasons, but the scale of activity near current price levels warrants attention.
What is Broadcom's current stock price and valuation?
AVGO trades at approximately $381.92 per share with a market capitalization of roughly $1.82 trillion. The forward price-to-earnings ratio is 19.6x. The consensus analyst price target of $525.44 implies approximately 37% upside from current levels, a substantial gap for a company of this size.
How fast is Broadcom growing revenue?
Broadcom's trailing twelve-month revenue is $75.46 billion, up 47.9% year over year. The company has beaten consensus EPS estimates in each of its last three reported quarters, most recently posting $2.05 actual against a $2.02 estimate. Gross margin is 76.3% and trailing free cash flow totals $27.21 billion.
Is Broadcom stock a buy right now?
The fundamentals support a bullish case — consistent EPS beats, 47.9% revenue growth, 76.3% gross margins, and $27.2 billion in free cash flow. However, $283.70 million in net insider selling at prices close to where the stock currently trades creates a countervailing signal. A neutral view is appropriate until the next quarterly earnings event provides additional clarity.
What did Broadcom report in its latest earnings filing?
Broadcom filed an 8-K earnings disclosure with the SEC on June 3, 2026. In its most recent reported quarter, the company posted $2.05 actual EPS against a $2.02 consensus estimate, continuing a streak of three consecutive quarterly beats.
Broadcom Inc. (AVGO) insiders have sold nearly $284 million in open-market shares over the past 90 days — led by co-founder Director Henry Samueli and Chief Legal Officer Mark Brazeal — even as the company posted consecutive earnings beats and 47.9% year-over-year revenue growth. The divergence between insider selling and accelerating AI-driven fundamentals raises the question of whether executives view current valuations as fully priced.