Lafayette Investments Inc. has increased its stake in Broadcom Inc. (NASDAQ:AVGO) by 15.9% during the second quarter, as disclosed in its recent 13F filing with the Securities and Exchange Commission. After acquiring an additional 825 shares, the fund now holds a total of 6,030 shares in the semiconductor manufacturer, representing a value of approximately $1.662 million.
This move by Lafayette is part of a broader trend among institutional investors modifying their positions in Broadcom. Notably, PARUS FINANCE UK Ltd significantly expanded its holdings by 175.3% in the first quarter, now owning 100,578 shares valued at around $16.84 million after purchasing an additional 64,038 shares. Similarly, Geneos Wealth Management Inc. increased its stake by 27.9%, now holding 64,130 shares worth about $10.737 million after acquiring an additional 13,978 shares.
Asio Capital LLC also boosted its investment by 2.0% during the same quarter, bringing its total to 54,459 shares valued at approximately $15.012 million. Other notable increases include Keener Financial Planning LLC, which raised its position by 34.8%, and Diversify Wealth Management LLC with a 5.6% increase. Currently, institutional investors and hedge funds collectively own 76.43% of Broadcom’s stock.
Analysts Upgrade Price Targets for Broadcom
In light of these developments, several equities analysts have revised their price targets for Broadcom. Truist Financial raised its target from $295.00 to $365.00, maintaining a “buy” rating. Deutsche Bank Aktiengesellschaft set an even higher target of $400.00 with a similar “buy” rating, while Argus also increased its target from $285.00 to $375.00. Overall, three analysts have rated the stock as a Strong Buy, thirty have issued Buy ratings, and one has given it a Hold rating. The consensus rating for Broadcom is “Buy,” with a consensus target price of $372.52, according to data from MarketBeat.
Broadcom’s stock performance highlights its robust standing in the market. As of Monday, AVGO shares opened at $354.13, with a 50-day moving average price of $331.47 and a 200-day moving average of $276.57. The company boasts a market capitalization of $1.67 trillion and a price-to-earnings ratio of 90.34. The stock has fluctuated from a 52-week low of $138.10 to a high of $374.23.
Quarterly Earnings and Dividend Announcement
Broadcom reported its latest earnings results on September 4, 2023, revealing earnings per share of $1.69, surpassing the consensus estimate of $1.66 by $0.03. The company achieved revenue of $15.95 billion for the quarter, exceeding analysts’ expectations of $15.82 billion. This performance marks a 22.0% increase in revenue compared to the same quarter last year, when earnings per share stood at $1.24.
In addition to its earnings report, Broadcom declared a quarterly dividend of $0.59 per share, which was paid out on September 30, 2023. Shareholders of record on September 22, 2023 received this dividend, representing an annualized payment of $2.36 and a yield of 0.7%. Broadcom’s current payout ratio is approximately 60.20%.
Insider Transactions and Company Overview
Recent insider activity indicates ongoing confidence in Broadcom’s future. Director Henry Samueli sold 368,797 shares on September 24, 2023, at an average price of $337.91, bringing the total transaction value to approximately $124.62 million. Following this transaction, Samueli holds 37,722,534 shares, valued at around $12.75 billion. Additionally, CFO Kirsten M. Spears sold 7,498 shares on September 17, 2023, for a total value of $2.61 million.
In the last 90 days, insiders have acquired 3,550 shares valued at approximately $1.23 million while selling 665,271 shares worth around $225.46 million. Currently, corporate insiders own about 2.00% of the company’s stock.
Broadcom Inc. specializes in designing and supplying a wide array of semiconductor devices, focusing on complex digital and mixed-signal products as well as analog III-V based devices. The company operates through two main segments: Semiconductor Solutions and Infrastructure Software.
