Bank Julius Baer Cuts Broadcom Holdings by 13% Amid Market Changes

Bank Julius Baer & Co. Ltd Zurich has reduced its stake in Broadcom Inc. (NASDAQ: AVGO) by 13% during the second quarter of 2023. The institutional investor now holds 1,754,260 shares of the semiconductor manufacturer, valued at approximately $484,000 following the sale of 261,837 shares. This adjustment was disclosed in the firm’s most recent 13F filing with the Securities and Exchange Commission.

A variety of institutional investors and hedge funds have similarly adjusted their positions in Broadcom. For instance, Sawyer & Company Inc. increased its holdings by 62.1%, acquiring an additional 36 shares to reach a total of 94 shares, now worth $26,000. PFS Partners LLC also expanded its stake by 38.4%, bringing its total to 137 shares valued at $38,000. Other notable increases include Costello Asset Management, which raised its holdings by 1.5%, and Walkner Condon Financial Advisors, which boosted its position by 1.0%.

Currently, institutional investors and hedge funds own 76.43% of Broadcom’s stock, reflecting significant confidence in the company’s future prospects.

Analyst Ratings and Stock Performance

Recent analyst reports have shown a positive outlook for Broadcom. Argus raised its target price from $285.00 to $375.00, assigning a “buy” rating on September 8, 2023. Similarly, TD Cowen adjusted its target price from $355.00 to $370.00, while Evercore ISI lifted its price objective from $342.00 to $403.00.

As it stands, three research analysts have rated Broadcom with a “Strong Buy,” while thirty have assigned a “Buy” rating, and two have given a “Hold” designation. According to MarketBeat.com, the stock has an average rating of “Buy” and a consensus price target of $374.21.

On September 4, 2023, Broadcom reported its quarterly earnings, announcing earnings per share (EPS) of $1.69, surpassing the consensus estimate of $1.66 by $0.03. The company’s revenue for the quarter was $15.95 billion, compared to analysts’ expectations of $15.82 billion, reflecting a 22% increase year-over-year.

Insider Transactions and Market Response

In a significant insider transaction, Broadcom CEO Hock E. Tan sold 148,154 shares on September 10, 2023, at an average price of $336.67. This transaction totaled approximately $49.88 million and represented a 15.21% decrease in his ownership stake. Following the sale, Tan holds 825,998 shares valued at around $278.09 million.

Another insider, Mark David Brazeal, sold 16,558 shares on September 17, 2023, for a total of $5.76 million, decreasing his ownership by 4.79% to 329,302 shares, worth approximately $114.47 million.

Market activity has shown some volatility, with Broadcom’s stock opening at $340.20 on the last trading day, down 1.9%. The company maintains a market capitalization of $1.61 trillion, a P/E ratio of 86.79, and a P/E/G ratio of 1.16. Its 52-week trading range spans from a low of $138.10 to a high of $386.48.

In conclusion, Broadcom continues to attract institutional investment despite recent share reductions by key players like Bank Julius Baer. The company appears well-positioned for future growth, as evidenced by its robust earnings performance and positive analyst ratings.