Hennion & Walsh Asset Management Inc. has reduced its holdings in Broadcom Inc. (NASDAQ: AVGO) by 3.2% during the third quarter of 2023, according to a recent filing with the Securities and Exchange Commission (SEC). The institutional investor now owns 77,825 shares of the semiconductor manufacturer’s stock, having sold 2,559 shares during the quarter. Broadcom represents 0.9% of Hennion & Walsh’s portfolio, positioning it as their tenth largest investment, valued at approximately $25,675,000.
Other institutional investors have also made adjustments to their positions in Broadcom. Notably, Sawyer & Company Inc. increased its holdings by 62.1% in the second quarter, now owning 94 shares worth $26,000 after acquiring 36 additional shares. Similarly, Longfellow Investment Management Co. LLC entered a new position valued at around $27,000, while Legend Financial Advisors Inc. and Teachers Insurance & Annuity Association of America each acquired stakes worth approximately $28,000. In total, institutional investors and hedge funds own about 76.43% of Broadcom’s shares.
Insider Transactions Raise Concerns
In significant insider activity, Broadcom’s CEO, Hock E. Tan, sold 130,000 shares on December 18, 2023, at an average price of $326.02, amounting to a total of $42,382,600.00. Following this transaction, Tan’s direct ownership in Broadcom decreased to 595,638 shares, valued at approximately $194,189,900.76. This sale represents a reduction of 17.92% in his position.
Additionally, Director Henry Samueli sold 320,316 shares on December 8, 2023, for an average price of $400.53, totaling around $128,296,167.48. Post-sale, Samueli retains 37,326,540 shares, valued at approximately $14.95 billion, a slight decrease of 0.85% in ownership. In total, company insiders sold 780,701 shares worth $284,349,357 over the past quarter, with insiders currently holding 2.00% of the company’s stock.
Broadcom Stock Performance and Financial Outlook
As of the latest trading session, shares of Broadcom opened at $344.97. The company has seen a fifty-two week low of $138.10 and a high of $414.61. The stock’s 50-day moving average stands at $359.72, while the 200-day moving average is $330.93. Broadcom’s market capitalization is approximately $1.64 trillion, with a price-to-earnings (P/E) ratio of 72.47.
Broadcom recently posted its quarterly earnings, reporting an earnings per share (EPS) of $1.95, surpassing analysts’ expectations of $1.87 by $0.08. Revenue for the quarter reached $18.02 billion, exceeding the consensus estimate of $17.46 billion and reflecting a year-over-year growth of 28.2%. Analysts project that Broadcom will achieve an EPS of $5.38 for the current fiscal year.
The company also declared a quarterly dividend of $0.65 per share, payable on December 31, 2023, to shareholders of record as of December 22, 2023. This marks an increase from the previous quarterly dividend of $0.59, representing an annualized dividend of $2.60 with a yield of 0.8%. Broadcom’s dividend payout ratio currently stands at 54.62%.
Overall, Broadcom continues to navigate a complex landscape influenced by insider trading and institutional investment shifts. As the semiconductor market evolves, the company’s strategic decisions and financial performance will be closely monitored by investors and analysts alike.
