Oversea Chinese Banking Corp Ltd has increased its investment in Broadcom Inc. (NASDAQ: AVGO) by 3.2% during the third quarter of 2023. According to Holdings Channel, the financial institution now holds 208,873 shares of the semiconductor manufacturer after acquiring an additional 6,529 shares. This addition brings Broadcom to account for approximately 1.7% of Oversea Chinese Banking Corp’s investment portfolio, making it the 12th largest position within the fund.
As of the most recent filing with the Securities and Exchange Commission, Oversea Chinese Banking Corp’s holdings in Broadcom are valued at approximately $69.1 million. The trend among institutional investors appears to be positive, with several hedge funds also adjusting their positions in Broadcom. For instance, Longfellow Investment Management Co. LLC entered a new stake valued at $27,000, while Legend Financial Advisors Inc. and Teachers Insurance & Annuity Association of America each purchased new positions valued at about $28,000 during the second quarter. Additionally, Manning & Napier Advisors LLC invested approximately $34,000 in the same period.
Institutional investors currently own around 76.43% of Broadcom’s outstanding shares, indicating strong confidence in the company’s future prospects.
Broadcom’s Performance and Future Outlook
Broadcom released its quarterly earnings results on December 11, 2023, showing robust performance. The company reported earnings of $1.95 per share, surpassing analyst expectations of $1.87 by $0.08. Revenue for the quarter stood at $18.02 billion, exceeding forecasts of $17.46 billion. This marked a significant increase of 28.2% compared to the same quarter last year, when Broadcom reported earnings of $1.42 per share.
Looking ahead, analysts predict that Broadcom Inc. will achieve earnings of $5.38 per share for the current fiscal year, with expectations for continued growth.
Broadcom also announced an increase in its quarterly dividend, which was paid to shareholders on December 31, 2023. The dividend has risen from $0.59 to $0.65, reflecting an annualized payout of $2.60 and a dividend yield of 0.8%. The company’s payout ratio currently stands at 54.62%.
Market Analysts and Insider Activity
Market analysts have recently provided mixed but generally positive assessments of Broadcom’s stock. Royal Bank of Canada initiated coverage with a “sector perform” rating and a price target of $370.00. In contrast, Wells Fargo upgraded their rating from “equal weight” to “overweight,” raising their target price from $410.00 to $430.00. Oppenheimer and JPMorgan Chase & Co. also adjusted their price targets upward, with JPMorgan setting a target of $475.00.
Broadcom has garnered considerable attention from analysts, with three rating the stock as a Strong Buy, thirty issuing a Buy rating, and only one providing a Hold rating. Currently, Broadcom holds an average rating of “Buy” with a target price averaging $438.61.
In insider trading news, Mark David Brazeal, an insider at Broadcom, sold 30,000 shares at an average price of $347.12, totaling $10,413,600. Following this transaction, Brazeal holds 210,573 shares valued at approximately $73.1 million. Additionally, Chief Financial Officer Kirsten M. Spears sold 30,000 shares at an average price of $347.82, summing up to $10,434,600. Insiders have sold a total of 779,901 shares worth $284.1 million in the past ninety days, with insiders currently holding 2.00% of the company’s stock.
Broadcom Inc., headquartered in Irvine, California, specializes in designing, developing, and supplying semiconductor and infrastructure software solutions. The company serves a diverse array of markets, including wired and wireless communications, enterprise and cloud storage, and networking. As it continues to expand, Broadcom remains a key player in the semiconductor industry.
