Broadcom Stock Is Surging. A Director Just Bought Up Shares.

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Broadcom

The stock has rallied this year, and the chipmaker’s director bought a large stake in the open market.

Shares of Broadcom (ticker: AVGO ) have gained more than 50% since the beginning of January. Earnings reports were strong, and some observers see the company as a play on artificial intelligence.

In the year On August 31, Broadcom stock hit a record high of $923.67 during the day; After the market closed that day, the company reported a strong fiscal third quarter.

A week later, on Wednesday, September 6th, Director Cheek Kian Low paid $9.6 million for 11,000 Broadcom shares, with an average price of $872.03 each. It currently has 15,951 shares The form he submitted with the Securities and Exchange Commission.

Lowe declined to comment on the stock purchase. Director of Broadcom Since December 2016Lowe is a partner and director of Newssmith Capital Partners LLP and an owner and director of Cluny Capital Limited (BVI). This is the first open-market purchase of Broadcom stock; Other shares are accrued from grants of restricted stock units to those serving as directors.

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Lowe’s stock is much higher than Broadcom’s. Stock-ownership guidelines, which requires non-employee directors to have five times the annual cash retention in stock. The appropriation for fiscal 2022 was $90,000.

Insider Scope is a standard Barron’s feature that covers the stock transactions of corporate executives and board members—so-called insiders—as well as large shareholders, politicians and other prominent figures. Because of their insider status, these investors are required to report stock trades to the Securities and Exchange Commission or other regulatory groups.

Write to Ed Lin at [email protected] and follow up @BarronsEdLin.