Colonial Trust Advisors has increased its ownership in Broadcom Inc. (NASDAQ: AVGO) by 8% during the second quarter of 2023, as revealed in its recent filing with the Securities and Exchange Commission (SEC). The investment firm now holds a total of 9,044 shares in the semiconductor manufacturer, valued at approximately $2.493 million following the acquisition of an additional 668 shares during this period.
This move by Colonial Trust Advisors is part of a broader trend among institutional investors in the semiconductor sector. Other hedge funds have also recently adjusted their stakes in Broadcom. For instance, Cheviot Value Management LLC established a new position worth around $25,000 in the first quarter. Similarly, Sawyer & Company Inc. increased its holdings by a significant 62.1% in the second quarter, bringing its total to 94 shares valued at $26,000 after acquiring 36 additional shares.
Other notable investments include Longfellow Investment Management Co. LLC, which acquired a new position valued at approximately $27,000, and Legend Financial Advisors Inc., which bought a stake worth about $28,000. LGT Financial Advisors LLC also entered the fray, acquiring shares valued at $31,000. Currently, institutional investors and hedge funds own 76.43% of Broadcom’s stock.
Insider Transactions Raise Attention
In related developments, insider trading activities have surfaced that could influence investor sentiment. On November 14, 2023, Broadcom’s Director, Justine Page, sold 800 shares at an average price of $331.14, amounting to a total transaction value of $264,912. Following this sale, Page’s ownership in the company decreased by 3.61%, leaving her with 21,382 shares valued at approximately $7.08 million.
Additionally, Broadcom’s CEO, Hock E. Tan, sold a substantial 100,000 shares on September 23, 2023, at an average price of $339.58, totaling $33.96 million. This transaction reduced Tan’s shareholding by 12.11%, leaving him with 725,638 shares valued at around $246.41 million.
Over the past quarter, insiders have collectively purchased 3,550 shares valued at $1.23 million while selling 665,271 shares totaling $225.48 million. Company insiders currently own approximately 2.00% of Broadcom’s stock.
Broadcom’s Recent Performance and Future Outlook
Broadcom’s stock performance has demonstrated resilience, opening at $397.57 on Friday. The company has a current ratio of 1.50, a quick ratio of 1.37, and a debt-to-equity ratio of 0.86. Its market capitalization stands at an impressive $1.88 trillion, with a price-to-earnings ratio of 101.42 and a beta of 1.19. The stock has experienced volatility, with a twelve-month low of $138.10 and a high of $399.87.
In its latest earnings report released on September 4, 2023, Broadcom reported earnings of $1.69 per share, surpassing analysts’ expectations of $1.66. The company’s revenue for the quarter reached $15.95 billion, exceeding projections of $15.82 billion. This marks a year-over-year revenue increase of 22.0% compared to the same quarter last year, when it posted earnings of $1.24 per share.
Broadcom has provided guidance for the fourth quarter of 2025, with analysts forecasting an average earnings per share of $5.38 for the current year.
In addition to its strong earnings performance, Broadcom declared a quarterly dividend of $0.59 per share, which was paid on September 30, 2023. Shareholders on record as of September 22, 2023, received this dividend, representing an annualized payout of $2.36 and a yield of 0.6%. The company’s dividend payout ratio stands at 60.20%.
Established as a leader in the semiconductor industry, Broadcom Inc. designs, develops, and supplies a wide range of semiconductor devices. Its operations are divided into two primary segments: Semiconductor Solutions and Infrastructure Software. The company’s strategic positioning and strong financial performance continue to attract institutional interest, reflecting a positive outlook for its future.
