Broadcom director sells shares worth over $130,000 By Investing.com

Broadcom Inc. (NASDAQ:) director Gayla J. Delly has sold 750 shares of the company’s common stock at a price of $174.53 per share, resulting in a total transaction value exceeding $130,000. The sale took place on September 25, 2024, as reported in a recent regulatory filing.

The transaction has adjusted Gayla J. Delly’s holdings to 34,750 shares of Broadcom Inc. following the sale. It’s important to note that this figure includes 1,890 restricted stock units and reflects a ten-for-one forward stock split that was effective after the market closed on July 12, 2024.

Broadcom, a leading player in the semiconductor and related devices industry, has seen its stock price fluctuate in recent times, with investors closely watching the trading activities of company insiders for insights into the firm’s financial health and future prospects.

While the recent sale by director Delly represents a significant amount of stock, it is a part of the normal course of transactions that insiders might undertake for various personal financial management reasons. The remaining substantial stake held by Delly indicates continued alignment with the company’s performance and shareholder interests.

Investors and market analysts often look to insider sales and purchases as one of many indicators to develop their outlook on a company. Broadcom’s latest updates will likely be scrutinized to gauge the sentiment of high-level insiders within the company.

For those interested in following Broadcom’s stock performance and insider transactions, the company’s trading symbol on the NASDAQ is AVGO.

In other recent news, Micron Technology (NASDAQ:) has reported a higher-than-expected first-quarter revenue, indicating a strong demand for memory chips used in AI computing. This announcement has spurred optimism in AI on Wall Street. On a similar note, Broadcom Inc. has unveiled Sian2, a 200G/lane PAM-4 DSP PHY, designed to enhance data center connectivity for AI applications. The new DSP promises to double the bandwidth while reducing power consumption, latency, and cost per bit.

Broadcom’s recent financial performance has shown a 47% year-over-year increase, with consolidated net revenue reaching $13.1 billion. This has been attributed to robust AI revenue and increased bookings from VMware (NYSE:). The company has also raised its forecast for AI-related revenue for fiscal year 2024 to $12 billion. Analysts from TD Cowen maintained a Buy rating on Broadcom, emphasizing the company’s progress in key growth areas such as Networking and AI.

In addition to this, Tower Semiconductor (NASDAQ:) has partnered with Broadcom for the production of Wi-Fi 7 RF front-end modules (FEMs), enhancing mobile connectivity performance and efficiency for next-generation applications. The collaboration is expected to meet the demanding size and power efficiency requirements of mobile devices. These recent developments underscore Broadcom’s strategic moves and potential for growth in the tech industry.

InvestingPro Insights

To provide additional context to Broadcom Inc.’s recent insider transaction, let’s examine some key financial metrics and analyst insights from InvestingPro.

Broadcom’s market capitalization stands at an impressive $807.45 billion, underscoring its significant position in the semiconductor industry. This valuation is supported by the company’s strong financial performance, with revenue reaching $46.81 billion in the last twelve months as of Q3 2024, representing a robust growth of 32.04% year-over-year.

InvestingPro Tips highlight Broadcom’s commitment to shareholder returns, noting that the company has raised its dividend for 14 consecutive years and maintained dividend payments for 15 years. This consistent dividend policy aligns with Director Delly’s continued substantial stake in the company, suggesting confidence in Broadcom’s financial stability and future prospects.

The company’s profitability is also noteworthy, with a gross profit margin of 74.71% in the last twelve months, indicating strong pricing power and operational efficiency. This profitability has contributed to Broadcom’s impressive stock performance, with a one-year price total return of 121.39% as of the latest data.

Analysts remain optimistic about Broadcom’s future, with InvestingPro Tips indicating that 20 analysts have revised their earnings upwards for the upcoming period. This positive sentiment is further reflected in the company’s current stock price, which is trading at 93.2% of its 52-week high.

For investors seeking a more comprehensive analysis, InvestingPro offers 16 additional tips on Broadcom, providing a deeper understanding of the company’s financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.