Austin Wealth Management Increases Stake in Broadcom by 27%

Austin Wealth Management LLC has significantly increased its holdings in Broadcom Inc. (NASDAQ:AVGO) by 27.1% during the second quarter of 2023. This information emerged from the firm’s latest 13F filing with the Securities and Exchange Commission (SEC). Following the acquisition of an additional 777 shares, Austin Wealth Management LLC now owns a total of 3,646 shares of the semiconductor manufacturer, valued at approximately $1.071 million.

Other institutional investors have also adjusted their positions in Broadcom recently. For instance, Symphony Financial Services Inc. established a new position valued at about $533,000. Bailard Inc. increased its stake by an impressive 70.5%, now holding 112,044 shares worth $30.885 million after purchasing an additional 46,326 shares. Geode Capital Management LLC expanded its holdings by 2.1%, currently owning 108,610,718 shares valued at approximately $29.828 billion after acquiring 2,226,585 shares in the last quarter. Meanwhile, Maple Capital Management Inc. raised its position by 22.8%, now owning 1,542 shares valued at $425,000.

As of now, institutional investors and hedge funds collectively own 76.43% of Broadcom’s stock.

Broadcom’s Financial Overview and Recent Performance

Broadcom’s stock opened at $342.46 on September 29, 2023. The company maintains a debt-to-equity ratio of 0.86 and a quick ratio of 1.37. Broadcom’s 52-week performance has seen a low of $138.10 and a high of $386.48. The semiconductor giant has a market capitalization of $1.62 trillion and a price-to-earnings (P/E) ratio of 87.36.

In its latest earnings report released on September 4, 2023, Broadcom reported earnings per share (EPS) of $1.69, surpassing analysts’ expectations of $1.66 by $0.03. The company’s net margin stood at 31.59%, with a return on equity of 36.60%. Revenue for the quarter reached $15.95 billion, exceeding the estimated $15.82 billion, and marking a year-over-year increase of 22.0%. Looking ahead, Broadcom has projected its Q4 2025 EPS guidance.

Dividend Announcement and Insider Activity

Broadcom recently declared a quarterly dividend of $0.59 per share, which was paid on September 30, 2023, to shareholders of record on September 22, 2023. This dividend reflects an annualized payout of $2.36 and a dividend yield of 0.7%. The company’s current dividend payout ratio is 60.20%.

In insider trading news, Director Henry Samueli sold 368,797 shares of Broadcom on September 24, 2023, at an average price of $337.91, totaling approximately $124.62 million. Post-transaction, Samueli holds 37,722,534 shares valued at around $12.75 billion. Additionally, insider Charlie B. Kawwas sold 3,893 shares on September 17, 2023, for a total of $1.35 million.

In the past three months, insiders have purchased 3,550 shares valued at $1.23 million while selling 664,471 shares worth approximately $225.22 million. Currently, corporate insiders own 2.00% of Broadcom’s stock.

Research analysts have provided varied assessments of Broadcom’s stock. Notably, Sanford C. Bernstein raised its target price from $295.00 to $400.00 while maintaining an “outperform” rating. Wells Fargo & Company increased its target price from $255.00 to $345.00 and gave the stock an “equal weight” rating. According to MarketBeat.com, Broadcom currently holds a consensus rating of “Buy” with a price target of $372.52.

Broadcom Inc. is dedicated to designing and supplying a variety of semiconductor devices, focusing on complex digital and mixed-signal technologies. The company operates in two major segments: Semiconductor Solutions and Infrastructure Software.