The chairman of semiconductor company Broadcom (AVGO) has moved to sell $500 million worth of company stock.
Chairman Henry Samueli has adopted a plan to sell large blocks of shares of the chipmaker. However, the stock sales are reportedly tied to Samueli’s charitable giving. He has adopted a Rule 10b5-1 trading plan that will enable him to sell as much as $500 million of AVGO stock between now and the end of the year.
The plan also provides for the Samueli Foundation, a charity he and his wife Susan started, to sell as much as $127.6 million of donated Broadcom shares this calendar year. The stock sale was disclosed in a filing with the U.S. Securities and Exchange Commission (SEC).
Charitable Giving
Rule 10b5-1 trading plans are used to remove the appearance that company insiders benefit from nonpublic information. They execute trades automatically when preset conditions are met, such as price, volume, and timing. Under the plan, Samueli is donating as much as $102.6 million of AVGO stock to the Samueli Foundation and making other charitable donations.
Henry Samueli has served as Broadcom’s chairman since December 2018. He co-founded Broadcom in 1991 and has held several executive positions with the company over the years. Henry and Susan Samueli own the National Hockey League’s (NHL) Anaheim Ducks team.
AVGO stock has declined 16% so far this year.
Is AVGO Stock a Buy?
The stock of Broadcom has a consensus Strong Buy rating among 26 Wall Street analysts. That rating is based on 24 Buy and two Hold recommendations assigned in the last three months. The average AVGO price target of $250.18 implies 30.74% upside from current levels.
Read more analyst ratings on AVGO stock
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