Broadcom Executive Sells Over $4.2 Million in Company Stock

In a recent transaction, Charlie B. Kawwas, President of the Semi Solutions Group at Broadcom Inc., sold 25,200 shares of the company’s common stock at prices between $168.24 and $168.38 per share, totaling approximately $4.24 million. The weighted average sale price was reported at $168.27. After the sale, Kawwas retains a substantial stake in Broadcom, with 753,280 shares still held indirectly through a trust, adjusted for a ten-for-one forward stock split implemented after market close on July 12, 2024.

As a leader in the semiconductor industry, Broadcom has experienced significant changes in its stock value, which are reflected in the holdings of company insiders. In addition to his indirect trust holdings, Kawwas directly owns 82,990 shares, including 75,000 restricted stock units, along with some smaller indirect holdings tied to his family.

These transactions offer valuable insights into the trading activities of Broadcom’s top executives and are part of the mandatory disclosures companies must provide regarding insider trades. Investors often scrutinize these sales and remaining holdings to gauge insider confidence and the overall health of the company.

The transaction was officially recorded by Noelle Matteson, Attorney-in-Fact for Charlie B. Kawwas, on September 23, 2024.

In other developments, Broadcom is making notable advancements in the technology sector. The company announced the general availability of its Sian2, a 200G/lane PAM-4 DSP PHY designed to improve data center connectivity for AI applications, a key component for scaling network infrastructures in AI-focused environments. Broadcom’s most recent earnings call for the third fiscal quarter revealed a remarkable 47% increase in financial performance year-over-year, with consolidated net revenue reaching $13.1 billion.

Furthermore, Broadcom continues to advance in critical growth sectors like Networking and AI. TD Cowen recently maintained a Buy rating on the company, emphasizing the successful integration of VMWare, which contributed $3.8 billion in revenue.

Broadcom has also formed a partnership with Tower Semiconductor for the production of Wi-Fi 7 RF front-end modules (FEMs), aimed at enhancing mobile connectivity performance. Additionally, Baird reiterated its Outperform rating on Broadcom, forecasting an AI-related revenue of $12 billion for fiscal year 2024 due to strong demand from major cloud service providers. These updates highlight Broadcom’s strategic maneuvers within the tech industry.

Looking ahead, investors are closely monitoring Broadcom’s financial health and market position, especially following insider trading activities. The company has a strong history of dividends, having raised its payout for 14 consecutive years, reflecting its commitment to shareholder returns.

Broadcom’s market capitalization stands at an impressive $808.62 billion, indicating its prominent status in the industry. Over the last twelve months, the company has experienced a revenue growth of 32.04% as of Q3 2024, with a quarterly increase of 47.27% during the same period. Such growth metrics suggest robust demand for Broadcom’s products and services.

Investors are also analyzing the price-to-earnings (P/E) ratio, which is currently at 152.24, with an adjusted P/E ratio of 114.81 for the last twelve months as of Q3 2024. This elevated ratio may signal that the stock is trading at a premium compared to its earnings, which is a consideration for value-focused investors.

For those seeking a more in-depth analysis, many analysts have recently revised their earnings estimations upwards, indicating a positive outlook for Broadcom’s profitability.