Diane M. Bryant, a director at Broadcom Inc. (NASDAQ:AVGO), recently sold a significant portion of her holdings in the semiconductor company. According to a filing with the Securities and Exchange Commission, Bryant sold 15,000 shares of Broadcom's common stock on December 23, 2024. The shares were sold at an average price of $226.68 each, totaling approximately $3.4 million. This transaction comes as Broadcom, now valued at $1.15 trillion, trades near its 52-week high of $251.88. According to InvestingPro data, the stock has delivered an impressive 123% return year-to-date.
This transaction was conducted under a Rule 10b5-1 trading plan, which allows company insiders to set up a predetermined plan to sell stocks. Following this sale, Bryant retains direct ownership of 6,460 shares, adjusted for a ten-for-one forward 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 75.2% gross profit margin and 44% revenue growth in the last twelve months.
Investors often watch insider transactions like these for potential signals about a company's future performance, though such transactions can also be part of routine portfolio adjustments. InvestingPro analysis shows 20 analysts have revised their earnings upwards for the upcoming period, suggesting continued optimism about the company's prospects. For deeper insights 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 robust growth in the artificial intelligence (AI) sector. Broadcom's AI revenues for fiscal year 2024 reached $12.2 billion, a threefold year-over-year increase, and are projected to grow to $17-18 billion in fiscal year 2025, marking a 40% year-over-year rise. This growth is largely attributed to Broadcom's custom silicon business, anticipated to expand three to four times in the next three years.
UBS has increased the price target for Broadcom shares to $270.00, up from the previous target of $220.00, while maintaining a Buy rating on the stock. Similarly, Bernstein SocGen Group has increased the price target for Broadcom to $250 from the previous $195, while maintaining an Outperform rating. JPMorgan adjusted its outlook on Broadcom, raising the price target to $250 from the previous $210 while maintaining an Overweight rating on the stock. Goldman Sachs confirmed 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 performance and growth prospects. The company's AI semiconductor serviceable available market (SAM) forecast for fiscal year 2027 is projected to be between $60 billion and $90 billion, suggesting a sharper growth trajectory than earlier estimates. These positive outlooks from financial firms underscore the significant potential of Broadcom's AI revenue streams.
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