Colonial Trust Advisors has increased its investment in Broadcom Inc. (NASDAQ: AVGO) by 8.0% during the second quarter of 2023, as disclosed in its recent filing with the Securities and Exchange Commission (SEC). The advisory firm now holds 9,044 shares of the semiconductor manufacturer, after acquiring an additional 668 shares in the quarter. The total value of Colonial Trust Advisors’ holdings in Broadcom amounts to approximately $2,493,000.
Other institutional investors have also made changes to their positions in Broadcom. Cheviot Value Management LLC entered a new position in the first quarter valued at around $25,000. Sawyer & Company Inc. increased its holdings by 62.1% during the second quarter, bringing their total to 94 shares worth $26,000 after acquiring an additional 36 shares. Longfellow Investment Management Co. LLC and Legend Financial Advisors Inc. also established new stakes valued at approximately $27,000 and $28,000, respectively.
Notably, 76.43% of Broadcom’s stock is now owned by institutional investors and hedge funds, indicating strong confidence in the company’s growth potential.
Insider Transactions at Broadcom
In related news, Broadcom Director Justine Page sold 800 shares of the company’s stock on November 14, 2023, at an average price of $331.14, totaling $264,912. Following this transaction, Page retains ownership of 21,382 shares valued at approximately $7,080,435.48, marking a 3.61% reduction in her holdings.
CEO Hock E. Tan also made significant moves by selling 100,000 shares on September 23, 2023, at an average price of $339.58, resulting in a transaction of $33,958,000. After this sale, Tan’s direct ownership stands at 725,638 shares, valued at around $246,412,152.04, reflecting a 12.11% decrease in his position.
Over the previous quarter, insiders purchased 3,550 shares valued at $1,227,869 while selling 665,271 shares worth $225,483,192. Currently, company insiders hold 2.00% of the company’s stock.
Broadcom’s Financial Performance
Broadcom’s stock opened at $397.57 on the most recent trading day. The company maintains a current ratio of 1.50, a quick ratio of 1.37, and a debt-to-equity ratio of 0.86. Its 50-day moving average stands at $351.00, while the 200-day moving average is $305.01.
The semiconductor giant has a market capitalization of $1.88 trillion, a price-to-earnings (P/E) ratio of 101.42, and a price-to-earnings-growth (PEG) ratio of 1.35. The stock has fluctuated between a twelve-month low of $138.10 and a high of $399.87.
On September 4, 2023, Broadcom announced its quarterly earnings, reporting earnings per share (EPS) of $1.69, exceeding analysts’ estimates of $1.66 by $0.03. The company generated revenue of $15.95 billion, surpassing projections of $15.82 billion, and reported a return on equity of 36.60% with a net margin of 31.59%. This represents a 22.0% increase in revenue compared to the same quarter last year.
Looking ahead, Broadcom has set its Q4 2025 guidance at EPS, with analysts forecasting an average EPS of 5.38 for the current year.
Dividend Declaration
Broadcom has also declared a quarterly dividend, which was paid on September 30, 2023. Shareholders of record as of September 22, 2023, received a dividend of $0.59 per share, translating to an annualized dividend of $2.36 and a dividend yield of 0.6%. The ex-dividend date was September 22, 2023, and the company’s dividend payout ratio (DPR) stands at 60.20%.
Broadcom Inc. specializes in designing, developing, and supplying a broad range of semiconductor devices, focusing on complex digital and mixed-signal complementary metal-oxide-semiconductor (CMOS) products. The company operates through two main segments, Semiconductor Solutions and Infrastructure Software.
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