Deseret Mutual Benefit Administrators Increases Stake in Broadcom Inc.

Deseret Mutual Benefit Administrators has significantly increased its investment in Broadcom Inc. (NASDAQ:AVGO) during the third quarter, with its stake growing by an impressive 818.3%. The organization now holds 8,999 shares of the semiconductor manufacturer, having acquired an additional 8,019 shares in the last quarter. This new holding constitutes approximately 0.8% of Deseret Mutual Benefit Administrators’ overall portfolio, making Broadcom its 21st largest investment. As of the latest quarter, the value of Deseret Mutual Benefit Administrators’ holdings in Broadcom is reported to be about $1,552,000.

A variety of other institutional investors have also adjusted their positions in Broadcom. Vanguard Group Inc. increased its stake by 3.0% during the first quarter, now owning 44,651,273 shares, which are valued at approximately $59.18 billion after purchasing an extra 1,303,462 shares over the last quarter. Similarly, Swedbank AB saw a massive increase in its holdings by 858.7% in the third quarter, now owning 18,369,841 shares worth about $3.17 billion after buying an additional 16,453,718 shares in the same period. Van ECK Associates Corp also raised its position in Broadcom by 917.8%, owning 12,701,500 shares valued at $2.20 billion after acquiring an additional 11,453,554 shares. Furthermore, Raymond James & Associates boosted its stake by 855.4%, owning 12,674,158 shares valued at approximately $2.19 billion after acquiring 11,347,563 additional shares. Finally, the National Pension Service increased its position by 1,045.4%, owning 8,273,157 shares worth about $1.43 billion following the purchase of 7,550,878 new shares. Overall, institutional investors control 76.43% of Broadcom’s stock.

Broadcom Stock Overview

As of Friday, Broadcom’s stock opened at $183.64. The company maintains a debt-to-equity ratio of 1.02. Its current ratio stands at 1.04, and its quick ratio is at 0.94. Broadcom has recorded a 12-month low of $90.31 and a high of $186.42. The company’s fifty-day moving average stands at $170.75, while its 200-day moving average is at $157.78. Broadcom Inc. possesses a market capitalization of $857.71 billion, with a price-to-earnings ratio of 159.55, a price-to-earnings-growth ratio of 2.11, and a beta of 1.17.

In their latest quarterly earnings report released on September 5th, Broadcom reported earnings per share (EPS) of $1.24, surpassing analysts’ estimates of $1.20 by $0.04. The company's net margin was 10.88%, with a return on equity of 30.12%. Broadcom recorded revenues of $13.07 billion for the quarter, outperforming the expected $12.98 billion. This marked a 47.3% increase in revenue year-over-year. Analysts forecast that Broadcom will post an EPS of 3.78 for the current fiscal year.

Dividend Increase

In addition to its impressive financial performance, Broadcom has announced an increase in its quarterly dividend. The latest dividend was paid on September 30th to investors on record as of September 19th, amounting to $0.53 per share, which translates to an annualized dividend of $2.12 and a yield of 1.15%. This raise follows the same quarterly dividend paid previously and reflects a dividend payout ratio (DPR) of 184.19%.

Analyst Insights

Broadcom has recently been the subject of various research analyses. Oppenheimer revised their price target for Broadcom down from $2,000.00 to $200.00, while rating the stock as “outperform” in a recent report. William Blair began covering Broadcom with an “outperform” rating on September 18th. Benchmark reiterated a “buy” rating, setting a price target of $210.00. Additionally, StockNews.com downgraded Broadcom from “buy” to “hold.” Finally, Rosenblatt Securities lowered their target price from $2,400.00 to $240.00 while maintaining a “buy” rating. Currently, the consensus rating according to MarketBeat.com describes Broadcom as a “Moderate Buy” with an average target price of $192.79.

Insider Transactions

Recent insider activity at Broadcom includes a transaction by Director Gayla J. Delly, who sold 750 shares on September 25th at an average price of $174.53, totaling $130,897.50. Post-transaction, Delly holds 34,750 shares valued at approximately $6,064,917.50. In another transaction, CEO Hock E. Tan sold 50,000 shares on September 17th at an average price of $163.37, totaling about $8.17 million, leaving him with 1,331,910 shares worth roughly $217.59 million. Over the last three months, insiders have sold a total of 311,080 shares of Broadcom, valued at $53.54 million, representing 2.00% of the shares owned by insiders.

About Broadcom

Broadcom Inc. is a global leader in designing, developing, and providing various semiconductor devices, particularly focusing on complex digital and mixed-signal complementary metal-oxide-semiconductor (CMOS) devices, as well as analog III-V based products. The company operates through two main segments: Semiconductor Solutions and Infrastructure Software.

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