We recently published a list of Insiders are Selling These 10 AI Stocks. Since Broadcom Inc (NASDAQ:AVGO) ranks 8th on the list, it deserves a deeper look.

Positive sentiment is prevailing in the market after strong bank earnings and increasing hopes of a soft landing. Ryan Detrick, Carson Group chief market strategist, said while talking during a recent program on CNBC that he sees more runway for the current bull market.

“This is a bull market. Now we’re in the third year of a bull market. My friend Sam Stovall said once you get to 65 years old, the odds of getting to 85 are really, really high. Bull markets work that way. Going back 50 years, there’s five other bull markets that made it into their third year, like this one is right now. The worst any of them went was another three years. A five-year total. The average was eight years. I’m not saying we have another six years of a bull market but what we’re saying is this is an economy that keeps surprising to the upside.”

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However, the analyst said large-cap tech stocks are “pricey.” He believes small- and mid-cap stocks are cheap and labeled financials and industrials as fairly valued.

There are some top AI stocks that are seeing insider selling activity. In this article, we take a look at those stocks and analyze their fundamentals and market sentiment. With each company, we have mentioned its hedge fund sentiment. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

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Broadcom Inc (NASDAQ:AVGO)

Number of Hedge Fund Investors: 130

On September 24, 2024, Broadcom Inc (NASDAQ:AVGO) President and CEO Hock E. Tan sold 150,000 shares at $172.94 per share, reducing his ownership by 10% to 1,289,440 shares. The sale was valued at approximately $25.94 million. The stock is down 3.3% since this transaction.

On September 19, 2024, Broadcom Inc (NASDAQ:AVGO) President of the Semiconductor Solutions Group Charlie B. Kawwas sold 25,200 shares at $168.27 per share, reducing his ownership by 3% to 838,470 shares. The transaction was valued at approximately $4.24 million.

In its last reported results, Broadcom Inc (NASDAQ:AVGO) beat estimates on both EPS and revenue, but guidance failed to impress the Street, resulting in a share price decline. However, Jefferies said the dip was a buying opportunity.