Greater Midwest Financial Group LLC Reduces Stake in Broadcom Inc.

Greater Midwest Financial Group LLC has decreased its investment in Broadcom Inc. (NASDAQ:AVGO) by 9.1% during the fourth quarter of the year, as reported by HoldingsChannel. Following this reduction, the firm holds 41,965 shares of the semiconductor company after selling 4,206 shares within the period. Broadcom constitutes approximately 6.2% of Greater Midwest Financial Group LLC's overall portfolio, positioning it as the seventh largest investment held by the firm. At the end of the last quarter, the total value of Greater Midwest Financial Group LLC's holdings in Broadcom was around $9,729,000.

In addition to Greater Midwest Financial Group LLC, other institutional investors have been active in modifying their positions in Broadcom. Notably, Disciplined Growth Investors Inc. MN made a new investment in Broadcom in the second quarter, estimated at about $228,000. Castleview Partners LLC significantly increased its holdings by 1,030.8% in the third quarter, acquiring a total of 147 shares valued at approximately $25,000 after purchasing an additional 134 shares in the last quarter.

Similarly, Pin Oak Investment Advisors Inc. raised its position in Broadcom by 900.0% during the third quarter and now owns 150 shares, also valued at $25,000 after acquiring an extra 135 shares during this time. Retirement Wealth Solutions LLC entered into a new investment in Broadcom worth $37,000 in the fourth quarter. Additionally, JDM Financial Group LLC expanded its stake by an impressive 1,323.1% in the third quarter, currently owning 185 shares valued at around $32,000 after purchasing an additional 172 shares within the period. Currently, institutional investors and hedge funds collectively own 76.43% of Broadcom's shares.

Market Analysts Show Optimism

Market analysts have a positive outlook for Broadcom. Various brokerages have issued reports with increased target prices for the company's shares. Deutsche Bank Aktiengesellschaft raised its target from $190.00 to $240.00, giving the stock a "buy" rating as of December 13th. TD Cowen followed suit, increasing its target to $240.00 and also rating the stock as a buy. Similarly, Evercore ISI raised its price target to $250.00 while Morgan Stanley increased its price objective to $265.00, indicating an overweight rating for Broadcom's stock. In aggregate, three analysts have given Broadcom a hold rating, while twenty-four have assigned a buy rating, according to MarketBeat data, which also reflects an average rating of "Moderate Buy" with a target price of $225.83.

Broadcom Shares Performance

As of Monday, shares of Broadcom traded at $244.70. The stock's 50-day moving average stands at $208.80, and its 200-day moving average is $180.62. Broadcom has experienced a one-year low of $117.43 and a high of $251.88. The company boasts a market capitalization of $1.15 trillion, with a price-to-earnings ratio of 199.59, a PEG ratio of 2.52, and a beta of 1.03. Financial metrics show a debt-to-equity ratio of 0.98, a current ratio of 1.17, and a quick ratio of 1.07.

Quarterly Earnings Report

Broadcom revealed its quarterly earnings results on December 12th. The semiconductor company reported earnings per share (EPS) of $1.42, surpassing analysts' expectations of $1.39 by $0.03. The company also reported a net margin of 11.43% and a return on equity of 28.00%. During the quarter, Broadcom generated revenue of $14.05 billion, slightly below the consensus estimate of $14.07 billion, but impressive considering the previous year, as the quarterly revenue showed a 51.2% year-over-year increase. Analysts expect Broadcom to post an EPS of 5.38 for the current year.

Increased Dividend Payments

Broadcom also recently announced an increase in its quarterly dividend, which was paid out on December 31st. Shareholders recorded on December 23rd received a dividend of $0.59 per share, up from the previous amount of $0.53 per share. This new dividend represents an annualized dividend of $2.36, translating to a dividend yield of 0.96%. Currently, Broadcom’s dividend payout ratio (DPR) stands at 191.87%.

Insider Transactions

In other news regarding Broadcom, Director Harry L. You sold 6,540 shares of the company's stock on December 17th, for a total of $1,569,600, at an average price of $240.00 per share. As a result of this transaction, he now owns 30,450 shares valued at approximately $7,308,000. Furthermore, CEO Hock E. Tan sold 45,000 shares on December 24th at an average price of $239.96, amounting to a transaction total of $10,798,200. After this sale, Tan retains 842,836 shares, worth about $202,246,926.56, marking a 5.07% decrease in ownership. Over the past three months, insiders have sold a total of 191,278 shares valued at approximately $44,964,800. Currently, corporate insiders hold about 2.00% of the company's stock.

About Broadcom Inc.

Broadcom Inc. is involved in the design, development, and supply of a wide range of semiconductor devices. The company specializes in complex digital and mixed signal complementary metal oxide semiconductor (CMOS) based devices as well as analog III-V based products, serving a global market. Broadcom operates through two main segments: Semiconductor Solutions and Infrastructure Software.

Broadcom, Investment, Shares