In a series of recent developments, Broadcom (NASDAQ:AVGO), a leading chip manufacturer, has seen significant insider stock purchases. The trend began earlier this month when Check Kian Low, a director at the company, made his first open-market purchase. On an undisclosed date in September, Low acquired 11,000 shares at an average price of $872.03 each, translating to an investment of $9.6 million.
Following suit, Harry L. You, another director at Broadcom and co-CEO of DMY Squared Technology Group (NYSE:DMYY), bought 1,000 shares of the company at an average price of $858.96 per share on Wednesday. This purchase marked You's first in the open market and increased his holdings in Broadcom to 3,510 shares, inclusive of restricted stock units. The total value of his acquisition amounted to $860,000.
Both You and Low's transactions were disclosed in forms filed with the Securities and Exchange Commission (SEC), complying with legal requirements for corporate executives and board members to disclose their stock transactions due to their insider status.
Broadcom's shares have been on an upward trajectory this year, witnessing an unprecedented surge of 51%, which significantly outperforms the S&P 500 index's increase of 16%. As of Tuesday's close, Broadcom's shares were valued at $844.60 each, nearing their all-time intraday high of $923.67 recorded on August 31st, 2023.
The company's robust performance is attributed to strong earnings reports and its potential in the artificial intelligence sector. Given these promising indicators, the recent insider purchases could be seen as a vote of confidence in Broadcom's future prospects.
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