Breakthru Advisory Services LLC has acquired a new stake in Broadcom Inc. (NASDAQ: AVGO), purchasing 3,961 shares during the third quarter of 2023. This investment, valued at approximately $1.3 million, represents about 0.9% of Breakthru’s total holdings, making Broadcom its 19th largest investment, according to a recent disclosure with the Securities & Exchange Commission.
Broadcom, a prominent semiconductor manufacturer, has attracted interest from numerous institutional investors. In the second quarter, Assetmark Inc. increased its stake in Broadcom by 2.4%, now holding 1,703,487 shares worth about $469.6 million. Capital Counsel LLC also entered the market with a new investment valued at approximately $221,000.
Investor Activity and Market Response
In addition to these investments, Waterloo Capital L.P. boosted its position in Broadcom by 7.0%, now owning 48,361 shares valued at $13.3 million. Meanwhile, Geneos Wealth Management Inc. increased its holdings by 27.9% in the first quarter, acquiring an additional 13,978 shares.
Institutional investors collectively own approximately 76.43% of Broadcom’s stock, indicating a confident outlook among larger financial entities. Analysts have noted a positive sentiment surrounding Broadcom, with Truist Financial raising its price target to $510, reflecting optimism about the company’s growth potential.
Recent developments have highlighted Broadcom’s strong performance. The company surpassed earnings expectations in its latest quarterly report, announcing a revenue of $18.02 billion and earnings per share of $1.95, exceeding estimates by $0.08. The year-over-year revenue growth was notable at 28.2%.
Dividend Increase and Stock Performance
Further demonstrating its financial health, Broadcom raised its quarterly dividend by 10% to $0.65 per share, with the payout scheduled for December 31, 2023. This change signals the company’s commitment to returning value to shareholders.
Despite recent positive trends, there has been increased volatility in Broadcom’s stock. Following a sharp sell-off, the stock has experienced fluctuations, dropping nearly 20% from pre-earnings levels. This volatility has led to heightened trading activity, including the purchase of approximately 323,615 call contracts, indicating bullish bets on the company’s near-term performance.
Insider trading activity has also raised eyebrows. Notably, Charlie B. Kawwas, an insider, sold 1,928 shares on December 17, 2023, valued at approximately $631,998.40. Following this sale, Kawwas retains 23,582 shares of Broadcom, valued at $7.73 million.
Moreover, Henry Samueli, a director at Broadcom, sold 368,797 shares in September, amounting to over $124.6 million. These insider transactions may influence market sentiment, despite many sales being attributed to personal diversification strategies.
As Broadcom continues to navigate these market dynamics, analysts remain optimistic. The average target price for Broadcom’s stock currently stands at $436.33, with a consensus rating of “Buy” from multiple brokerages, including recent upgrades from Goldman Sachs and UBS Group.
Broadcom, headquartered in Irvine, California, is a key player in the semiconductor market, providing solutions across various sectors, including wireless communications and cloud storage. The company’s impressive performance and strategic investments position it well for continued growth in the competitive tech landscape.
