Wallace Advisory Group LLC significantly increased its investment in Broadcom Inc. (NASDAQ: AVGO) by purchasing an additional 1,343 shares in the second quarter of 2023. This move raised the firm’s total holdings to 3,680 shares, with a current valuation of approximately $1,014,000, according to the company’s latest 13F filing with the Securities and Exchange Commission (SEC).
The increase in Broadcom shares is part of a broader trend among institutional investors. Several firms have recently adjusted their positions in the semiconductor manufacturer. For instance, Sawyer & Company Inc. expanded its holdings by 62.1%, now owning 94 shares valued at about $26,000. Similarly, PFS Partners LLC and Costello Asset Management INC boosted their stakes by 38.4% and 1.5%, respectively. Collectively, institutional investors control approximately 76.43% of Broadcom’s shares.
Insider Transactions Highlight Share Activity
Recent insider trading has also drawn attention. On September 17, 2023, Charlie B. Kawwas, an insider at Broadcom, sold 3,893 shares at an average price of $347.82, totaling approximately $1,354,063.26. Following this sale, Kawwas retained ownership of 25,295 shares, valued at around $8,798,106.90. This sale represented a 13.34% decrease in Kawwas’s ownership.
In a notable transaction on September 23, Hock E. Tan, the CEO of Broadcom, sold 100,000 shares for about $33,958,000. After this sale, Tan owns 725,638 shares, worth approximately $246,412,152.04. This trade marked a 12.11% reduction in his stake in the company.
In total, insiders have purchased 3,550 shares valued at $1,227,869 while selling 665,271 shares worth approximately $225,464,248 over the past ninety days.
Broadcom Reports Positive Earnings and Dividend Announcement
Broadcom recently reported its quarterly earnings, revealing an earnings per share (EPS) of $1.69, surpassing analysts’ expectations of $1.66. The company’s revenue for the quarter reached $15.95 billion, exceeding the consensus estimate of $15.82 billion. This reflects a robust 22.0% increase compared to the previous year. The firm also reported a return on equity of 36.60% and a net margin of 31.59%.
On September 30, Broadcom paid a quarterly dividend of $0.59 to shareholders of record as of September 22, 2023. This dividend translates to an annualized total of $2.36, representing a yield of 0.7%. The company’s dividend payout ratio currently stands at 60.20%.
Analysts have responded positively to Broadcom’s performance. Research firms, including Piper Sandler and Morgan Stanley, have raised their target price for the stock, with estimates now ranging from $375.00 to $450.00. Broadcom has received a mix of ratings, with three analysts issuing a “Strong Buy” rating, thirty assigning a “Buy” rating, and one holding a “Hold” rating.
Broadcom Inc. continues to play a vital role in the semiconductor industry, designing and supplying a diverse range of devices. As it navigates a competitive landscape, the company’s strategic decisions and performance metrics will be closely monitored by investors and analysts alike.
