Prossimo Advisors LLC has significantly reduced its stake in Broadcom Inc. (NASDAQ: AVGO), lowering its holdings by 72% during the third quarter of 2023. According to a recent 13F filing with the U.S. Securities and Exchange Commission (SEC), the institutional investor now owns 907 shares of the semiconductor giant after selling 2,335 shares in the quarter. This adjustment means Broadcom represents approximately 2.2% of Prossimo Advisors’ investment portfolio, making it the firm’s 15th largest position. As of the end of September, the value of Prossimo Advisors’ holdings in Broadcom stood at approximately $299,000.
Several other institutional investors have also recently altered their positions in Broadcom. Longfellow Investment Management Co. LLC initiated a new position valued at around $27,000 in the second quarter. Similarly, Legend Financial Advisors Inc. purchased shares worth about $28,000, while Teachers Insurance & Annuity Association of America acquired a stake valued at approximately $28,000. LGT Financial Advisors LLC and New England Capital Financial Advisors LLC each entered new positions in Broadcom worth about $31,000 during the same period. Currently, institutional investors collectively own 76.43% of Broadcom’s stock.
Broadcom’s Financial Performance and Dividend Increase
On the trading front, shares of Broadcom opened at $332.60 on the latest market day, reflecting a market capitalization of $1.58 trillion. The company’s price-to-earnings (PE) ratio is noted at 69.87, with a price-to-earnings growth (PEG) ratio of 1.17, and a beta of 1.21. Broadcom’s recent financial metrics include a 50-day simple moving average of $358.46 and a 200-day simple moving average of $335.10. The company has demonstrated solid financial health with a debt-to-equity ratio of 0.76, a current ratio of 1.71, and a quick ratio of 1.58. Over the past year, Broadcom’s stock has experienced significant volatility, with a low of $138.10 and a high of $414.61.
In recent news, Broadcom announced an increase in its quarterly dividend, which was paid on December 31, 2023. Shareholders of record on December 22 received a dividend of $0.65 per share, marking an annualized dividend of $2.60 and a yield of 0.8%. This increase from the previous quarterly dividend of $0.59 reflects a dividend payout ratio (DPR) of 54.62%.
Analyst Ratings and Insider Transactions
Broadcom has attracted attention from various research analysts recently. Oppenheimer raised its target price for Broadcom shares from $435.00 to $450.00, assigning an “outperform” rating in a report dated December 12, 2023. Goldman Sachs reissued a “buy” rating with a price objective set at $450.00 in their report from January 5, 2024. Other analysts, including those from Weiss Ratings and Raymond James Financial, have also reiterated positive outlooks for the stock, with average price targets hovering around $438.61 according to MarketBeat.com.
In addition to analyst activity, insider trading has been notable. Chief Financial Officer Kirsten M. Spears sold 30,000 shares on December 31 for an average price of $347.82, totaling approximately $10.43 million. Following this transaction, Spears retains 277,237 shares in Broadcom, valued at about $96.43 million. Additionally, insider Mark David Brazeal sold 38,281 shares on December 17 at an average price of $327.65, amounting to approximately $12.54 million. Collectively, insiders sold 779,901 shares valued at $284.07 million in the last quarter.
Broadcom Inc., headquartered in Irvine, California, is a leading global technology company specializing in semiconductor and infrastructure software solutions across various markets. With a diverse product line that includes components for wired and wireless communications, enterprise storage, and networking, the firm serves original equipment manufacturers, cloud service providers, and telecommunications carriers worldwide.
