Goldstone Financial Group Acquires Shares of Broadcom Inc.

Goldstone Financial Group LLC recently established a new stake in Broadcom Inc. (NASDAQ:AVGO) during the third quarter. This was revealed in their latest 13F filing with the Securities and Exchange Commission. The firm purchased 4,751 shares of the semiconductor company, amounting to a total value of around $819,000.

In addition to Goldstone, several other institutional investors and hedge funds have adjusted their positions in Broadcom. For instance, AXA S.A. increased its stake by 2.7% in the second quarter, now owning 291,078 shares valued at approximately $467.3 million after acquiring an additional 7,608 shares last quarter. Meanwhile, Whittier Trust Co. dramatically elevated its holdings by 947.2% in the third quarter, owning 689,858 shares worth $119 million after buying 623,983 shares during this period. Summit Place Financial Advisors LLC grew its investments in Broadcom by 912.6% this past quarter, now holding 9,802 shares valued at $1.69 million after acquiring an additional 8,834 shares. Signaturefd LLC also increased its position by 913.0%, currently owning 78,977 shares worth $13.62 million after an additional purchase of 71,181 shares. Lastly, Godsey & Gibb Inc. raised its holdings by 887.0%, now owning 180,672 shares valued at $31.17 million after acquiring an additional 162,366 shares. Notably, institutional investors control about 76.43% of Broadcom's stock.

Insider Transactions

In other news, CEO Hock E. Tan sold 50,000 shares of Broadcom on September 17th at an average price of $163.37, resulting in a transaction valued at $8,168,500. After this sale, Tan’s remaining ownership is 1,331,910 shares, which is valued at approximately $217.59 million. This transaction indicated no significant changes in his ownership percentage. Furthermore, on October 11th, insider Charlie B. Kawwas sold 15,950 shares at an average price of $181.44, amounting to a total of $2.89 million. Kawwas now directly owns 737,330 shares, valued at about $133.78 million. Overall, insiders have sold 311,080 shares worth $53.54 million in the last 90 days, and company insiders collectively hold about 2.00% of the total stock.

Analysts' Perspectives

Several analysts have expressed their opinions regarding Broadcom's stock recently. William Blair started coverage on Broadcom, giving it an “outperform” rating. Benchmark also reiterated a “buy” rating with a price target of $210.00. In a related research report, JPMorgan Chase & Co. raised their target price for Broadcom from $200.00 to $210.00 with an “overweight” rating. Similarly, Rosenblatt Securities adjusted their price target down from $2,400.00 to $240.00, while Morgan Stanley increased their target from $176.00 to $180.00, maintaining their “overweight” rating. The current analyst ratings show two hold ratings, 24 buy ratings, and one strong buy rating, suggesting that Broadcom is viewed positively with a consensus price target of $191.54.

Latest Stock Performance

As of the last trading session, Broadcom's shares dipped slightly by 0.5%, opening at $168.92. The company boasts a market capitalization of $786.3 billion, with a price-to-earnings ratio of 146.89, a PEG ratio of 2.84, and a beta of 1.17. Broadcom's stock has shown a 12-month low of $86.00 and a high of $186.42, while the 50-day moving average price is roughly $168.94. Their most recent quarterly earnings report released on September 5th showed earnings per share (EPS) of $1.24, which surpassed the analysts' expectations of $1.20. The company reported a net margin of 10.88% and a return on equity of 30.12%, generating $13.07 billion in revenue against expected figures of $12.98 billion, a significant increase from the previous year's earnings of $0.95 per share.

Dividend Increases

Broadcom has also recently announced an increase in its quarterly dividend, which was distributed on September 30th. Shareholders on record as of September 19th received a dividend of $0.53 per share, up from the previous amount. This results in an annual dividend yield of 1.26% based on a total of $2.12 per share, although its dividend payout ratio currently stands at a high 184.35%.

Overview of Broadcom Inc.

Broadcom Inc. designs and provides a wide range of semiconductor devices, focusing on complex digital and mixed-signal complementary metal oxide semiconductor (CMOS) devices and analog III-V based products globally. The company operates through two main segments: Semiconductor Solutions and Infrastructure Software.

Conclusion

The latest activities in Broadcom’s stock reflect a strong interest from institutional investors, despite recent insider sales. The analysts’ positive ratings and the company's robust financial performance present a strong outlook for Broadcom’s future. Investors may find it worthwhile to keep an eye on further developments and market trends that could impact Broadcom's market position.

Goldstone, Broadcom, Investors