On September 26, 2023, it was reported that KCS Wealth Advisory had acquired a new stake in Broadcom Inc. (NASDAQ:AVGO) during the second quarter of the year. According to the company’s filing with the Securities and Exchange Commission, they purchased 293 shares of the semiconductor manufacturer’s stock, valued at approximately $254,000.
Broadcom recently released its earnings results for the quarter ending August 31st. The company reported earnings per share (EPS) of $10.54, surpassing analysts’ consensus estimates of $10.43 by $0.11. This marks a positive outcome for Broadcom, highlighting its ability to outperform expectations.
The semiconductor manufacturer also demonstrated impressive financial performance with a net margin of 39.25% and a return on equity of 74.31%. Additionally, Broadcom recorded revenue of $8.85 billion during the quarter, which aligned with consensus estimates. In comparison to the same quarter last year, their revenue increased by an impressive 4.5%.
Market research analysts predict that Broadcom Inc.’s current-year earnings per share will amount to approximately $37.89, showcasing positive expectations for the company’s future performance.
Various brokerages have shared their perspectives on AVGO stock. BMO Capital Markets raised their price objective from $890.00 to $1,000.00 and granted it an “outperform” rating in a report released on September 1st.
Evercore ISI also affirmed an “outperform” rating and set a target price of $1,000.00 for Broadcom shares on September 1st.
Rosenblatt Securities reiterated their “buy” rating with a target price of $1,000.00 in a research note published on September 20th.
Meanwhile TD Cowen raised their target price from $800.00 to $900.00 and assigned Broadcom a “market perform” rating in a release on September 1st.
Finally, Needham & Company LLC raised their target price from $33.00 to $44.00 in a report issued on September 1st.
Overall, five analysts have given Broadcom’s stock a hold rating, while fifteen analysts have recommended buying it. According to data from Bloomberg.com, the average rating for Broadcom is “moderate buy,” with an average target price of $846.14.
This recent stake acquisition by KCS Wealth Advisory reflects confidence in Broadcom Inc.’s future prospects. As perceptions of the stock remain generally positive and market analysts continue to predict strong performance for the company, it will be interesting to observe how Broadcom further navigates the semiconductor industry and builds upon its current success.
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Growing Confidence in Broadcom’s Potential: Recent Increase in Holdings from Institutional Investors and Hedge Funds
September 26, 2023 – Broadcom Inc. (NASDAQ: AVGO), a semiconductor manufacturer, has recently seen a significant increase in holdings from various institutional investors and hedge funds. Kozak & Associates Inc., Howard Financial Services LTD., Vanguard Capital Wealth Advisors, Castle Wealth Management LLC, and Armstrong Advisory Group Inc. are among the entities that have boosted their investments in the company.
Kozak & Associates Inc. raised its holdings in Broadcom by 4.3% during the second quarter, resulting in the ownership of 292 shares worth $256,000. Howard Financial Services LTD., on the other hand, increased its holdings by 1.2%, now owning 1,044 shares valued at $905,000. Vanguard Capital Wealth Advisors saw a 0.4% boost in their holdings, bringing their total to 2,758 shares worth $2,393,000. Castle Wealth Management LLC also experienced a 1.7% uptick in holdings with 738 shares now valued at $640,000. Finally, Armstrong Advisory Group Inc.’s exposure to Broadcom increased by 13%, resulting in ownership of 113 shares worth $98,000.
These recent developments indicate a high level of confidence and potential profitability associated with Broadcom stock among institutional investors.
Broadcom currently trades on NASDAQ under the symbol AVGO and opened at $833.89 on September 26th. The company boasts impressive financials including a current ratio of 2.50 and quick ratio of 2.25, reflecting strong liquidity position and ability to meet short-term obligations effectively.
With a market capitalization of $344.18 billion and a price-to-earnings ratio of 25.64, Broadcom has demonstrated its stability as an established player within the semiconductor industry.
Analysts have also weighed in on Broadcom’s prospects with BMO Capital Markets increasing their price objective for the stock from $890.00 to $1,000.00, while Evercore ISI and Rosenblatt Securities both maintain an “outperform” rating with a target price of $1,000.00. TD Cowen has set a more conservative target of $900.00, labeling the stock as “market perform.” Overall, Bloomberg.com reports that the average rating for Broadcom is cited as “Moderate Buy” with an average target price of $846.14.
In addition to their financial performance and analyst ratings, Broadcom has declared a quarterly dividend scheduled to be paid on Friday, September 29th. Stockholders who were recorded on Thursday, September 21st are eligible for a dividend of $4.60 per share. With a dividend yield of 2.21%, this represents an annualized dividend payout ratio of 56.58%.
In terms of insider trading activity, Director Check Kian Low made headlines by purchasing 11,000 shares of Broadcom’s stock on Wednesday, September 6th at an average price of $872.03 per share for a total transaction value of $9,592,330.00. Following this purchase, Low now holds 15,951 shares valued at approximately $13,909,750.53.
Moreover, Director Harry L.You acquired 1,000 shares on Friday, September 15th at an average price of $858.96 per share in a transaction worth $858,960.00.
In conclusion, Broadcom Inc.’s recent increase in holdings from institutional investors and hedge funds indicates growing confidence in the company’s potential for continued success within the semiconductor industry. With positive analyst ratings and its solid financial standing as demonstrated through key ratios and dividend payouts., Broadcom remains an attractive investment option for many market participants.
