Westerkirk Capital Inc. has acquired a new stake in Broadcom Inc. (NASDAQ: AVGO), purchasing 7,610 shares valued at approximately $2,098,000 during the second quarter of 2023, according to Holdings Channel.com. This investment reflects a growing interest among institutional investors in the semiconductor giant, which is known for its complex digital and mixed signal devices.
Several other institutional investors have also adjusted their positions in Broadcom. Assetmark Inc. increased its holdings by 2.4% during the same period, now owning 1,703,487 shares worth approximately $469,566,000. Capital Counsel LLC entered the market with a new stake valued at around $221,000, while Waterloo Capital L.P. raised its stake by 7.0%, resulting in a total of 48,361 shares valued at $13,331,000.
PARUS FINANCE UK Ltd. made a significant move by increasing its holdings by a remarkable 175.3% in the first quarter, now owning 100,578 shares worth about $16,840,000. Geneos Wealth Management Inc. also grew its stake by 27.9%, holding 64,130 shares valued at approximately $10,737,000. Currently, institutional investors own 76.43% of Broadcom’s stock.
Insider Trading Activity
Recent insider trading activity has garnered attention as well. CEO Hock E. Tan sold 148,154 shares on September 10, 2023, at an average price of $336.67, amounting to approximately $49,879,007.18. After this sale, Tan retained 825,998 shares valued at about $278,088,746.66, indicating a 15.21% decrease in his ownership of the company.
Additionally, insider Charlie B. Kawwas sold 3,893 shares on September 17, 2023, at an average price of $347.82, totaling $1,354,063.26. Following this transaction, Kawwas directly owned 25,295 shares valued at approximately $8,798,106.90, representing a 13.34% decrease in his position. In the last three months, insiders purchased 3,550 shares worth $1,227,869 and sold 665,271 shares valued at $225,483,192. Currently, insiders hold 2.00% of the stock.
Broadcom’s Financial Performance
Broadcom released its quarterly earnings on September 4, 2023, reporting earnings per share (EPS) of $1.69, surpassing the consensus estimate of $1.66 by $0.03. The company achieved a return on equity of 36.60% and a net margin of 31.59%. Revenue for the quarter reached $15.95 billion, exceeding the anticipated $15.82 billion. This marks a 22.0% increase in revenue year-over-year, compared to $1.24 EPS in the same period last year.
Looking ahead, Broadcom has set its guidance for the fourth quarter of 2025, with analysts projecting an EPS of $5.38 for the current year. The company also declared a quarterly dividend of $0.59, paid on September 30, 2023, to shareholders on record as of September 22, 2023. This dividend represents an annualized rate of $2.36 with a yield of 0.6%, and the ex-dividend date was September 22, 2023. Broadcom’s payout ratio stands at 60.20%.
A number of research firms have recently provided insights on Broadcom’s stock. Barclays set a target price of $450.00 and rated the company as “overweight.” Benchmark raised their price objective from $315.00 to $385.00 with a “buy” rating. Macquarie initiated coverage with an “outperform” rating and a target price of $420.00, while Sanford C. Bernstein increased their target from $295.00 to $400.00 with an “outperform” rating.
Overall, three analysts have rated Broadcom with a “Strong Buy,” thirty-one have given it a “Buy” rating, and one has rated it as a “Hold.” The average rating stands at “Buy,” with an average price target of $383.00 according to data from MarketBeat.com.
Broadcom Inc., based in the United States, designs, develops, and supplies a variety of semiconductor devices, focusing on complex digital and mixed signal complementary metal oxide semiconductor-based products globally. The company operates through two segments: Semiconductor Solutions and Infrastructure Software.
