Regent Peak Wealth Advisors LLC has acquired a new stake in Broadcom Inc. (NASDAQ: AVGO), purchasing 15,105 shares valued at approximately $4,983,000 during the third quarter of 2023. This investment represents about 1.0% of Regent Peak’s total portfolio, making Broadcom its 22nd largest holding.
Several other institutional investors have also adjusted their positions in Broadcom recently. Arthur M. Cohen & Associates LLC increased its stake by 0.6% during the same quarter, now holding 4,781 shares worth $1,577,000. Similarly, McHugh Group LLC raised its holdings by 0.4%, acquiring an additional 31 shares to reach a total of 8,433 shares valued at $2,782,000.
Redwood Financial Network Corp and BancFirst Trust & Investment Management also enhanced their positions in Broadcom, with increases of 1.7% and 2.9% respectively. Redwood Financial now owns 1,939 shares valued at $535,000, while BancFirst Trust has 1,235 shares worth $405,000.
As of now, institutional investors collectively own around 76.43% of Broadcom’s stock.
Analyst Ratings and Performance Insights
Broadcom’s stock has attracted significant attention from Wall Street analysts. In a series of reports published on December 12, 2023, Deutsche Bank Aktiengesellschaft set a target price of $430.00 and rated the stock as a “buy.” Piper Sandler also maintained an “overweight” rating, adjusting its price target from $375.00 to $430.00. Barclays and Mizuho further bolstered their recommendations, with Barclays increasing its target to $500.00 and Mizuho raising its target from $435.00 to $450.00.
A consensus among analysts indicates that Broadcom holds an average rating of “buy” with a price target of $436.33. This sentiment is reinforced by the stock’s robust performance, evidenced by a market capitalization of $1.66 trillion and a price-to-earnings ratio of 73.40.
In its latest earnings report, released on December 11, 2023, Broadcom exceeded analysts’ expectations with earnings per share of $1.95, surpassing the consensus estimate of $1.87. The company reported a quarterly revenue of $18.02 billion, significantly above the anticipated $17.46 billion. Year-over-year, revenue increased by 28.2%.
Dividend Announcement and Insider Transactions
On the shareholder front, Broadcom has announced a quarterly dividend of $0.65, set to be paid on December 31, 2023. Shareholders on record as of December 22, 2023 will receive this dividend, reflecting an increase from the previous quarterly dividend of $0.59. This change results in an annualized dividend of $2.60, yielding 0.7%, with a dividend payout ratio of 54.62%.
In insider trading developments, Mark David Brazeal, a company insider, sold 38,281 shares on December 17, 2023, for a total value of approximately $12.54 million. Following this transaction, Brazeal retains 266,494 shares valued at about $87.32 million. Additionally, insider Charlie B. Kawwas sold 1,928 shares on the same day, totaling around $632,000.
Broadcom Inc., headquartered in Irvine, California, designs and supplies semiconductor and infrastructure software solutions for a diverse range of markets. Its offerings include components for both wired and wireless communications, emphasizing its pivotal role in the technology sector.
As Broadcom continues to attract institutional investments and bolster its financial performance, market observers will be closely watching its forthcoming developments.
