Crossmark Global Holdings Inc. has increased its stake in Broadcom Inc. (NASDAQ: AVGO) by 3.0% during the third quarter of 2023, according to Holdings Channel. This means Crossmark now holds 371,946 shares of the semiconductor manufacturer after acquiring an additional 10,878 shares in the period. Broadcom represents approximately 1.8% of Crossmark’s portfolio, making it the firm’s fourth largest holding, valued at roughly $122.7 million as reported in the latest SEC filing.
The interest in Broadcom is not limited to Crossmark. Other major institutional investors have also adjusted their positions. Vanguard Group Inc. increased its holdings by 1.3% in the second quarter, now owning 483,442,939 shares valued at approximately $133.3 billion after purchasing an additional 6,222,802 shares. State Street Corp also raised its stake by 0.5%, now holding 185,276,987 shares worth around $51.1 billion. Similarly, Geode Capital Management LLC expanded its position by 2.1%, acquiring a total of 108,610,718 shares valued at about $29.8 billion.
Norges Bank made a significant move as well, acquiring a new stake valued at approximately $18.6 billion in the same quarter. Invesco Ltd. raised its holdings by 8.4%, now owning 38,449,630 shares valued at around $10.6 billion. Overall, institutional investors and hedge funds currently own 76.43% of Broadcom’s stock.
Broadcom’s Market Performance and Dividends
As of Thursday, Broadcom shares opened at $317.53. The stock has experienced a wide range in the past year, with a fifty-two week low of $138.10 and a high of $414.61. The company boasts a market capitalization of $1.51 trillion, a price-to-earnings ratio of 66.71, and a beta of 1.22. Broadcom also recently announced a quarterly dividend of $0.65 per share, which is an increase from the previous $0.59, reflecting the company’s ongoing commitment to returning value to shareholders.
The dividend was paid on December 31, 2023, to shareholders of record as of December 22, 2023. This annualized dividend represents a total of $2.60 per share and yields approximately 0.8%, with a payout ratio of 54.62%.
Analyst Ratings and Market Sentiment
Broadcom’s stock has attracted significant attention from analysts. Recent reports indicate a generally positive outlook, with DA Davidson upgrading Broadcom to a “hold” rating. Piper Sandler revised its target price to $430.00, up from $375.00, while Wall Street Zen also upgraded its rating from “hold” to “buy.” KeyCorp and UBS Group set ambitious price objectives of $500.00 and $475.00, respectively.
Overall, two analysts have rated Broadcom with a “Strong Buy” designation, while thirty have given it a “Buy” rating, and two have assigned a “Hold” rating. The consensus rating currently stands at “Buy,” with an average target price of $432.13, according to MarketBeat.com.
The company has also reported strong quarterly results, with non-GAAP earnings per share of $2.05 and revenue of $19.31 billion, marking a year-on-year increase of approximately 29%. This performance has strengthened investor sentiment, particularly as management forecasts second-quarter revenue around $22.0 billion, exceeding consensus estimates of $20.4 billion.
Broadcom has also noted a significant surge in AI-related revenue, which more than doubled, and announced a new $10 billion share repurchase program. These developments are expected to enhance earnings per share and drive shareholder returns.
In terms of insider activity, Director Harry L. You acquired 1,000 shares at an average price of $325.13 per share, increasing his holdings by 2.81%. Conversely, insider Charlie B. Kawwas sold 1,928 shares at an average of $327.80, resulting in a 7.56% decrease in his ownership.
Broadcom Inc., headquartered in Irvine, California, is a global leader in designing and supplying semiconductor and infrastructure software solutions across various markets. The company’s wide-ranging semiconductor portfolio includes components for wired and wireless communications, enterprise storage, and networking solutions, serving a diverse clientele that includes original equipment manufacturers and cloud service providers worldwide.
