Prossimo Advisors LLC has significantly reduced its stake in Broadcom Inc. (NASDAQ: AVGO), selling 72% of its holdings during the third quarter of 2023. According to the firm’s latest 13F filing with the Securities and Exchange Commission (SEC), Prossimo now holds 907 shares of the semiconductor giant, down from 2,335 shares. As of the end of September, these shares were valued at approximately $299,000, representing about 2.2% of Prossimo’s investment portfolio, which makes Broadcom its 15th largest position.
Several other institutional investors have also adjusted their positions in Broadcom recently. Longfellow Investment Management Co. LLC acquired a new stake valued at around $27,000, while Legend Financial Advisors Inc. added shares worth approximately $28,000. Similarly, Teachers Insurance & Annuity Association of America and LGT Financial Advisors LLC each bought new positions in Broadcom, valued at around $28,000 and $31,000, respectively. Collectively, institutional investors now own approximately 76.43% of Broadcom’s stock.
Broadcom’s Stock Performance and Financial Metrics
On December 31, 2023, Broadcom’s shares opened at $332.60, reflecting a market capitalization of $1.58 trillion. The stock has experienced a price-to-earnings (P/E) ratio of 69.87 and a price/earnings-to-growth (PEG) ratio of 1.17. Furthermore, Broadcom’s debt-to-equity ratio stands at 0.76, with a current ratio of 1.71 and a quick ratio of 1.58. Over the past year, the stock has fluctuated between a low of $138.10 and a high of $414.61.
Recently, Broadcom announced an increase in its quarterly dividend. Shareholders of record on December 22, 2023, received a dividend of $0.65 per share, translating to an annualized figure of $2.60 and a yield of 0.8%. This marks an increase from the previous quarterly dividend of $0.59, with the company’s dividend payout ratio currently at 54.62%.
Analyst Ratings and Insider Transactions
Broadcom has garnered attention from various analysts. Oppenheimer raised its target price for Broadcom shares from $435.00 to $450.00, maintaining an “outperform” rating. Goldman Sachs also reaffirmed a “buy” rating with a price objective of $450.00. In total, three analysts have assigned a “Strong Buy” rating, while thirty have given a “Buy” rating, and one has rated it as “Hold.” The consensus price target stands at $438.61.
In insider trading news, Chief Financial Officer Kirsten M. Spears sold 30,000 shares on December 31, 2023, at an average price of $347.82, totaling approximately $10.43 million. This transaction reduced her direct ownership to 277,237 shares, valued at around $96.43 million. Additionally, insider Mark David Brazeal sold 38,281 shares on December 17, 2023, for about $12.54 million. In the last quarter alone, insiders sold a total of 779,901 shares valued at approximately $284.07 million.
Insiders currently hold 2.00% of Broadcom’s stock, indicating a notable level of engagement from company executives.
Broadcom Inc. is headquartered in Irvine, California, and operates globally, providing semiconductor and infrastructure software solutions across various markets. Its expertise includes components for both wired and wireless communications, serving a diverse clientele that includes original equipment manufacturers and cloud service providers.
