WealthPlan Investment Management LLC has reduced its stake in Broadcom Inc. (NASDAQ:AVGO) by 24.1% during the third quarter of 2023, according to a recent filing with the Securities and Exchange Commission. The institutional investor now holds 12,718 shares of the semiconductor company after selling 4,039 shares during this period. As of the latest filing, WealthPlan’s holdings in Broadcom are valued at approximately $4,196,000.
This decision reflects a trend among institutional investors, as several hedge funds have also adjusted their positions in Broadcom. Notably, Longfellow Investment Management Co. LLC acquired a new stake valued at $27,000 in the second quarter. Similarly, Legend Financial Advisors Inc. and Teachers Insurance & Annuity Association of America each purchased new positions worth $28,000. Other firms, including LGT Financial Advisors LLC and New England Capital Financial Advisors LLC, also entered into new stakes, both valued at $31,000. Currently, institutional investors and hedge funds collectively own 76.43% of Broadcom’s stock.
Broadcom’s Recent Performance and Dividend Announcement
Broadcom has demonstrated a positive financial trajectory, with its stock rising by 2.5% recently. The company reported its quarterly earnings on December 11, 2023, revealing earnings per share of $1.95 for the quarter, exceeding analysts’ expectations of $1.87 by $0.08. Revenue for the quarter reached $18.02 billion, surpassing the consensus estimate of $17.46 billion. This represents a significant year-over-year revenue increase of 28.2%, compared to $1.42 earnings per share in the same quarter last year.
In addition to its robust earnings, Broadcom declared a quarterly dividend of $0.65 per share, which was paid on December 31, 2023. This increase from the previous quarterly dividend of $0.59 highlights the company’s commitment to returning value to shareholders. The dividend yield stands at 0.7%, with a payout ratio of 54.62%.
Insider Transactions and Analyst Ratings
In related news, Broadcom’s Director, Harry L. You, purchased 1,000 shares on December 18, 2023, at an average price of $325.13 per share, increasing his holdings to 36,602 shares, valued at approximately $11,900,408.26. Conversely, Chief Financial Officer Kirsten M. Spears sold 30,000 shares on December 31 for an average price of $347.82, resulting in a total transaction of $10,434,600. Following this sale, Spears holds 277,237 shares, valued at around $96,428,573.34. Over the last quarter, corporate insiders have sold a total of 779,901 shares worth $284,069,237.
Analysts remain optimistic about Broadcom’s future performance. Cowen reaffirmed a “buy” rating on December 12, 2023, while TD Cowen increased its target price from $405.00 to $450.00. Deutsche Bank set a target price of $430.00, and Goldman Sachs Group reiterated a “buy” rating with a price target of $450.00. Overall, the consensus rating for Broadcom is “Buy,” with an average price target of $438.61.
Broadcom Inc. operates as a global technology leader, specializing in semiconductor and infrastructure software solutions. The company serves diverse markets, providing essential components for communications, cloud storage, networking, and broadband access, among others. Headquartered in Irvine, California, Broadcom maintains a significant presence through research, development, and sales teams across North America, Europe, and Asia.
For those interested in the latest financial insights regarding Broadcom and its institutional investors, resources such as HoldingsChannel.com can provide up-to-date information on 13F filings and insider transactions.
