Austin Wealth Management Increases Stake in Broadcom by 27.1%

Austin Wealth Management LLC has expanded its investment in Broadcom Inc. (NASDAQ: AVGO) by acquiring an additional 777 shares, which represents a 27.1% increase in its holdings during the second quarter of 2023. According to the firm’s latest 13F filing with the Securities and Exchange Commission (SEC), the institutional investor now holds a total of 3,646 shares of the semiconductor manufacturer, valued at approximately $1,071,000.

Other institutional investors have also adjusted their positions in Broadcom recently. Symphony Financial Services Inc. entered a new position in Broadcom valued at around $533,000 during the same quarter. Bailard Inc. significantly increased its stake by 70.5%, now owning 112,044 shares worth about $30.9 million after purchasing an additional 46,326 shares. Geode Capital Management LLC raised its holdings by 2.1%, with a total of 108,610,718 shares valued at $29.8 billion, following an acquisition of 2,226,585 shares. Maple Capital Management Inc. and Accredited Investors Inc. also increased their stakes by 22.8% and 5.9%, respectively.

Institutional investors and hedge funds collectively own 76.43% of Broadcom’s shares, reflecting significant confidence in the company’s future prospects.

Broadcom’s Stock Performance and Financial Outlook

Broadcom’s stock opened at $342.46 on the last trading day, with a market capitalization of $1.62 trillion. The company has demonstrated strong financial health, evidenced by a debt-to-equity ratio of 0.86, a quick ratio of 1.37, and a current ratio of 1.50. Over the past year, Broadcom’s stock has fluctuated between a low of $138.10 and a high of $386.48. The stock’s 50-day simple moving average stands at $349.09, while the 200-day moving average is $295.48.

In its latest quarterly earnings report, announced on September 4, 2023, Broadcom reported earnings per share (EPS) of $1.69, surpassing analyst expectations of $1.66 by $0.03. The company achieved a net margin of 31.59% and a return on equity of 36.60%, with quarterly revenue reaching $15.95 billion, exceeding predictions of $15.82 billion. This revenue reflects a remarkable 22.0% increase year-over-year.

Analysts forecast that Broadcom will report an EPS of $5.38 for the current year, indicating continued growth potential.

Dividend Distribution and Insider Activity

Broadcom recently declared a quarterly dividend of $0.59 per share, which was paid on September 30, 2023. Shareholders of record on September 22, 2023 received this dividend, marking an annualized dividend of $2.36 and a dividend yield of 0.7%. The company maintains a dividend payout ratio of 60.20%.

In terms of insider activity, Director Henry Samueli sold 368,797 shares at an average price of $337.91, totaling approximately $124.6 million. Following this transaction, he retained ownership of 37,722,534 shares, valued at about $12.7 billion. Additionally, insider Charlie B. Kawwas sold 3,893 shares for around $1.35 million. Over the past three months, insiders have purchased 3,550 shares valued at $1.23 million and sold 664,471 shares worth around $225.2 million.

Research analysts have provided varying ratings for Broadcom, with three firms assigning a “Strong Buy,” 29 giving a “Buy,” and two issuing a “Hold” rating. Recent target price adjustments include an increase by Sanford C. Bernstein from $295.00 to $400.00, while Wells Fargo & Company raised its target from $255.00 to $345.00. The consensus rating among analysts is “Buy,” with an average price target of $372.52.

Broadcom Inc. continues to position itself as a leader in the semiconductor industry, developing and supplying a wide range of devices, particularly in complex digital and mixed signal applications. The company operates across two main segments: Semiconductor Solutions and Infrastructure Software, reinforcing its global footprint in technology innovation.