Broadcom Stakes Reduced by Funds: 2.3%, 5.0% and 82.3% Cuts
Segment Wealth Management trimmed its Broadcom holdings by 2.3%, selling 4,291 shares and leaving a 184,981-share position valued at $61.0 million. HM Payson & Co. cut its stake by 5.0% (68,968 shares) to 1,306,739 shares worth $431.1 million, while Encompass More Asset Management sold 82.3% (3,633 shares) for $258,000.
1. Segment Wealth Management Reduces Position
In its most recent SEC filing for the third quarter, Segment Wealth Management LLC trimmed its stake in Broadcom Inc. by 2.3%, selling 4,291 shares to leave a total holding of 184,981 shares. At the time of the filing, those shares represented 3.7% of the firm’s overall portfolio and ranked Broadcom as its third-largest position. The remaining stake was valued at $61.0 million, reflecting the wealth manager’s decision to modestly rebalance exposure to the semiconductor and infrastructure software specialist during the period.
2. Broader Institutional Activity
Other institutional investors have been actively adjusting their Broadcom allocations. Assetmark Inc. increased its position by 2.4%, adding 39,466 shares to reach 1.70 million shares valued at $469.6 million. Waterloo Capital L.P. grew its stake by 7.0%, acquiring 3,180 shares for a total of 48,361 shares ($13.3 million), while Geneos Wealth Management boosted its holdings by 27.9% to 64,130 shares ($10.7 million). Meanwhile, RiverFront Investment Group more than doubled its position, up 107.6% to 16,524 shares ($4.6 million). In aggregate, institutional investors now control approximately 76.4% of Broadcom’s outstanding share capital.
3. Analyst Upgrades Support Positive Outlook
Wall Street analysts have recently raised their price targets and ratings on Broadcom’s shares. Truist Financial lifted its target from $500 to $510 and maintained a Buy rating, while Raymond James reaffirmed an Outperform view with a $420 target. Bank of America increased its objective from $460 to $500 under a Buy recommendation, and Wall Street Zen upgraded to Buy from Hold. Across 33 analysts tracked by MarketBeat, the consensus remains a Buy, with an average target price of $436.33.
4. Financial Performance and Shareholder Returns
On December 11th, Broadcom delivered quarterly revenue of $18.02 billion, up 28.2% year-over-year, and non-GAAP EPS of $1.95, surpassing consensus by $0.08. The company reported a 36.2% net margin and a 37.5% return on equity. In late December, Broadcom increased its quarterly dividend from $0.59 to $0.65 per share, representing a $2.60 annualized payout and a 0.7% yield. Insiders have reduced their holdings slightly, with CFO Kirsten Spears selling 3,714 shares and another executive netting $12.5 million from a 38,281-share sale in mid-December, leaving insiders with 2.0% of outstanding shares.