IQ EQ Fund Management Reduces Stake in Broadcom by 2.1%
IQ EQ Fund Management Ireland Ltd has reduced its holdings in Broadcom Inc. (NASDAQ:AVGO) by 2.1% during the first quarter of the fiscal year. According to its latest 13F filing with the Securities and Exchange Commission, the fund sold 861 shares, leaving it with a total of 40,325 shares of the semiconductor company. This reduction represents a value of approximately $6,752,000, making Broadcom the fund’s 29th largest holding, which comprises about 0.8% of its entire portfolio.
Several other prominent investors have also adjusted their positions in Broadcom. For instance, both Barnes Dennig Private Wealth Management LLC and Cheviot Value Management LLC purchased new positions valued at $25,000 in the first quarter. Additionally, Inlight Wealth Management LLC acquired shares worth $26,000, while Sunbeam Capital Management LLC and Vermillion Wealth Management Inc. bought positions valued at $28,000 and $30,000, respectively. Notably, institutional investors collectively hold approximately 76.43% of Broadcom’s stock.
Analyst Ratings and Stock Performance
Broadcom has recently attracted attention from Wall Street analysts, with a series of reports suggesting a positive outlook for the company. Seaport Research Partners upgraded Broadcom to a “strong-buy” rating on April 30, 2024. Oppenheimer increased its price target from $265.00 to $305.00, maintaining an “outperform” rating. Similarly, Bank of America raised its target from $240.00 to $300.00 and reaffirmed its “buy” rating. Overall, one investment analyst rated the stock as a hold, while twenty-seven others assigned buy ratings, and three issued strong buy ratings. The average target price currently stands at $294.92.
As of the latest trading session, Broadcom shares opened at $288.64. The company has shown considerable volatility over the past year, with a low of $128.50 and a high of $306.95. Broadcom’s market capitalization is approximately $1.36 trillion, with a price-to-earnings ratio of 108.10.
Broadcom’s recent earnings report, announced on June 5, 2024, revealed earnings per share (EPS) of $1.58, surpassing the consensus estimate of $1.57. The company reported revenues of $15 billion, which was also above expectations, reflecting a year-over-year growth of 20.2%. Analysts predict that Broadcom will achieve an EPS of 5.38 for the current fiscal year.
Dividends and Share Buyback Program
In addition to its performance metrics, Broadcom recently declared a quarterly dividend of $0.59, which was paid to shareholders on June 30, 2024. This dividend translates to an annual yield of 0.8% and a payout ratio of 88.39%. Furthermore, the Board of Directors has authorized a substantial share buyback plan amounting to $10.00 billion, allowing the company to repurchase up to 1.4% of its outstanding shares. Such initiatives often indicate a belief among executives that the company’s stock is undervalued.
In recent insider trading activity, Chief Financial Officer Kirsten M. Spears sold 56,310 shares on June 18, 2024, at an average price of $251.75, totaling approximately $14.18 million. Following this transaction, Spears retained 361,937 shares valued at around $91.12 million. Additionally, Chief Executive Officer Hock E. Tan sold 117,758 shares on June 12, 2024, for approximately $29.78 million, reducing his holdings by 10.40%.
Broadcom Inc. specializes in designing and supplying a wide array of semiconductor devices. The company operates across two segments: Semiconductor Solutions and Infrastructure Software. As it continues to navigate the semiconductor landscape, Broadcom remains a significant player in the industry, attracting both institutional and retail investors.
