Diane M. Bryant, CEO of Broadcom Inc. (NASDAQ: ), recently sold a significant portion of its stake in the semiconductor company. Bryant sold 15,000 shares of Broadcom stock on Dec. 23, 2024, according to a filing with the Securities and Exchange Commission. The shares were sold at an average price of $226.68 each, for a total of approximately $3.4 million. The transaction comes as Broadcom, now valued at $1.15 trillion, is trading near a 52-week high of $251.88. According to InvestingPro according to the data, the stock has made an impressive return of 123% since the beginning of the year.
This transaction was executed under a Rule 10b5-1 trading plan, which allows company persons to set a predetermined plan for selling stock. Following this sale, Bryant retains direct ownership of 6,460 shares, adjusted for the forward ten-for-one stock split that took effect earlier in the year. Additionally, Bryant holds 320 shares indirectly through The Diane M. Bryant Trust. The company maintains strong fundamentals, with a gross margin of 75.2% and revenue growth of 44% over the past twelve months.
Investors often watch insider transactions like these for potential signals about a company’s future performance, although such transactions can also be part of routine portfolio adjustments. InvestingPro the analysis shows that 20 analysts have revised their earnings upward for the upcoming period, suggesting continued optimism about the company’s prospects. For deeper insight into Broadcom’s valuation and growth metrics, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, Broadcom Limited has been the focus of several financial firms due to strong growth in the artificial intelligence (AI) sector. Broadcom’s AI revenue for fiscal year 2024 reached $12.2 billion, a three-fold increase from the previous year, and is forecast to rise to $17-18 billion in fiscal year 2025, representing growth from 40% compared to the previous year. This growth is largely attributed to Broadcom’s custom silicon business, which is expected to expand three to four times over the next three years.
UBS increased their target price on shares of Broadcom to $270.00, up from their previous target of $220.00, while maintaining a Buy rating on the stock. Similarly, Bernstein SocGen Group raised its price target on Broadcom to $250 from $195 previously, while maintaining an Outperform rating. JPMorgan adjusted its outlook on Broadcom, raising its target price to $250 from $210 previously, while maintaining an Overweight rating on the stock. Goldman Sachs reaffirmed its Buy rating on Broadcom, with a revised 12-month price target of $240, up from the previous $190.
These adjustments reflect recent developments in the company’s financial results and growth prospects. The company’s available AI semiconductor (SAM) market forecast for fiscal year 2027 is projected at between $60 billion and $90 billion, indicating a sharper growth trajectory than earlier estimates. These positive outlooks for financial companies underscore the significant potential of Broadcom’s AI revenue streams.
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