Deseret Mutual Benefit Administrators Increases Stake in Broadcom Inc.

Deseret Mutual Benefit Administrators significantly increased its investment in Broadcom Inc. (NASDAQ:AVGO) during the third quarter, growing their position by an impressive 818.3%, according to recent reports from HoldingsChannel. Following this investment, they now hold a total of 8,999 shares of the leading semiconductor manufacturer, having acquired an additional 8,019 shares over the quarter. This stock represents about 0.8% of Deseret Mutual Benefit Administrators’ overall portfolio, making Broadcom their 21st largest holding. At the close of the most recent quarter, their holdings in Broadcom were valued at approximately $1,552,000.

Several other large investors have also adjusted their positions in Broadcom. Vanguard Group Inc. increased its stake by 3.0% in the first quarter and now owns 44,651,273 shares worth around $59.18 billion after adding an additional 1,303,462 shares. Similarly, Swedbank AB saw a substantial increase in its holdings during the third quarter, boosting its position by 858.7% to own 18,369,841 shares, valued at $3.17 billion. Van ECK Associates Corp made an even larger increase, lifting their stake by 917.8%, now holding 12,701,500 shares valued at $2.20 billion. Raymond James & Associates also enhanced their stake by 855.4%, owning 12,674,158 shares worth about $2.19 billion after acquiring 11,347,563 shares in the last quarter. Furthermore, the National Pension Service bolstered its investment by 1,045.4%, now holding 8,273,157 shares valued at $1.43 billion. Overall, institutional investors collectively own a substantial 76.43% of Broadcom’s stock.

Broadcom Stock Performance

As of Friday, Broadcom shares opened at $183.64. The company holds a debt-to-equity ratio of 1.02, while the current and quick ratios stand at 1.04 and 0.94, respectively. Over the past twelve months, the stock has fluctuated between a low of $90.31 and a high of $186.42. The fifty-day and two-hundred-day moving averages are $170.75 and $157.78, respectively. Broadcom has a market capitalization of $857.71 billion, a price-to-earnings ratio of 159.55, and a price-to-earnings growth ratio of 2.11, with a beta of 1.17.

Broadcom recently published its quarterly earnings on September 5, reporting earnings of $1.24 per share, exceeding the analysts' expected $1.20 by $0.04. The company achieved a net profit margin of 10.88% and a return on equity of 30.12%. Its revenue for the quarter reached $13.07 billion, surpassing expectations of $12.98 billion, and representing a 47.3% increase compared to the same quarter last year. Analysts project that Broadcom will post earnings of $3.78 per share for the current fiscal year.

Broadcom Increases Dividend

Additionally, Broadcom recently announced a quarterly dividend which was paid on September 30. Shareholders on record as of September 19 received a dividend of $0.53. This translates to an annualized dividend of $2.12, reflecting a yield of 1.15%. This was an increase from the prior dividend. The ex-dividend date was also September 19, with a dividend payout ratio of 184.19%.

Wall Street Analyst Opinions

Broadcom has been the subject of numerous research reports recently. Oppenheimer adjusted their price target from $2,000.00 to $200.00, maintaining an “outperform” rating. William Blair began covering the stock with an “outperform” rating. Benchmark reiterated a “buy” rating with a price target of $210.00, whereas StockNews.com downgraded from a “buy” to a “hold” rating. Rosenblatt Securities also reduced its target price significantly from $2,400.00 to $240.00, yet maintained a “buy” stance. Overall, analysis indicates that two analysts have a hold rating on the stock, twenty-four have a buy rating, and one has a strong buy rating. Broadcom holds a consensus rating of “Moderate Buy” and a target price of $192.79 based on MarketBeat.com data.

Insider Transactions at Broadcom

In recent insider activities, Director Gayla J. Delly sold 750 shares at an average price of $174.53 on September 25, totaling $130,897.50. After this transaction, Delly retains 34,750 shares valued at approximately $6.06 million. Similarly, CEO Hock E. Tan sold 50,000 shares on September 17 at an average price of $163.37, totaling $8.17 million, leaving him with 1,331,910 shares valued at roughly $217.59 million. Over the past three months, insiders sold a total of 311,080 shares worth about $53.54 million, and currently, insiders own 2.00% of Broadcom's stock.

About Broadcom Inc.

Broadcom Inc. specializes in designing, developing, and supplying a variety of semiconductor devices, emphasizing complex digital and mixed signal complementary metal oxide semiconductor products and analog III-V devices globally. The company operates in two main segments: Semiconductor Solutions and Infrastructure Software.

Broadcom, Investment, Dividends