Fulton Breakefield Broenniman Increases Stake in Broadcom by 220%

Fulton Breakefield Broenniman LLC has significantly increased its investment in Broadcom Inc. (NASDAQ: AVGO) by acquiring an additional 4,698 shares during the second quarter of 2023, raising its total holdings by an impressive 220.6%. According to the latest Form 13F filing with the Securities and Exchange Commission, the fund now owns 6,828 shares, valued at approximately $1,882,000.

Other institutional investors have also adjusted their positions in Broadcom recently. Allegiance Financial Group Advisory Services LLC purchased a new stake in Broadcom valued at around $308,000. Beaumont Asset Management L.L.C. increased its ownership by 0.8%, now holding 9,040 shares worth $2,492,000 after acquiring an additional 74 shares. Columbus Macro LLC raised its stake by 7.5%, bringing its total to 33,167 shares, valued at $9,143,000 following a purchase of 2,316 shares.

Values Added Financial LLC and Trifecta Capital Advisors LLC also expanded their holdings, increasing their stakes by 13.2% and 10.8%, respectively. Institutional investors now hold 76.43% of Broadcom’s stock, reflecting strong confidence in the company.

Analyst Ratings and Price Targets

Broadcom has garnered attention from several analysts recently, with many raising their price targets. Piper Sandler increased its target from $315.00 to $375.00 and assigned an “overweight” rating in a report dated September 5, 2023. KeyCorp established a target price of $460.00, while the Goldman Sachs Group reaffirmed a “buy” rating with a target of $340.00.

HSBC upgraded its rating from “hold” to “buy” with a target price of $400.00. Additionally, TD Cowen raised its target from $355.00 to $370.00, also providing a “buy” recommendation. Overall, Broadcom holds an average rating of “buy” from analysts, with a consensus target price of $370.07, according to data from MarketBeat.

Broadcom’s Financial Performance

Broadcom’s stock opened at $344.13 on September 6, 2023. Over the past 12 months, the stock has experienced a low of $138.10 and a high of $374.23. The company’s fifty-day moving average stands at $324.84, while its 200-day moving average is $265.45. Broadcom maintains a quick ratio of 1.37, a current ratio of 1.50, and a debt-to-equity ratio of 0.86.

In its latest quarterly earnings report, released on September 4, 2023, Broadcom announced earnings per share of $1.69, beating analysts’ expectations of $1.66 by $0.03. The company reported quarterly revenue of $15.95 billion, surpassing the anticipated $15.82 billion. This performance marks a 22.0% increase in revenue compared to the same quarter last year.

Broadcom has also provided guidance for Q4 2025, with analysts projecting an earnings per share of 5.38 for the current fiscal year.

Dividends and Insider Activity

On September 30, 2023, Broadcom announced a quarterly dividend of $0.59 per share, paid to stockholders of record as of September 22, 2023. This dividend represents an annualized total of $2.36 and a yield of 0.7%. The company’s dividend payout ratio currently stands at 60.20%.

In related news, insider Charlie B. Kawwas sold 3,893 shares of Broadcom stock on September 17, 2023, at an average price of $347.82, totaling over $1.35 million. Following this transaction, Kawwas retained 25,295 shares, valued at approximately $8.8 million. Similarly, Director Henry Samueli sold 368,797 shares on September 24, 2023, for about $124.6 million at an average price of $337.91.

Overall, insider activity reflects a complex picture, with insiders buying 3,550 shares worth $1.23 million while selling 664,471 shares valued at $225.18 million in the last quarter.

Broadcom Inc. continues to be a major player in the semiconductor industry, focusing on the design and supply of various semiconductor devices. The company’s robust financial performance and strategic investments by institutional players underscore its ongoing significance in the market.