Insider Activity Report: Broadcom (AVGO)

Harry You, a director at Broadcom (AVGO), recently added 1,000 shares. The buy increased his stake by 40 percent, and came to a total cost just under $859,000.

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  • The buy comes a week after another director, Check Low, bought 11,000 shares, increasing his stake by 22 percent, and paying just under $9.6 million. These mark the first two insider buys since March 2022, otherwise, company insiders, mostly directors, have been sellers of shares.

    Overall, Broadcom insiders own 2.3 percent of shares.

    The semiconductor manufacturer is up 71 percent over the past year, or more than four times as much as the S&P 500.

    While revenues and earnings are each up less than 10 percent, the company still looks inexpensive at 19 times earnings. That could help fuel a rally higher into the end of the year.

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  • Besides the low valuation, shares look poised to continue growing in the years ahead amid strong demand for semiconductor chips.

    Action to take: Long-term investors may want to buy some shares now, and use any market weakness to add to the position. Broadcom also yields about 2.2 percent at today’s prices.

    For traders, shares are likely to continue their long-term uptrend. The January 2024 $1,000 calls, last going for about $12.00, could see mid-to-high double-digit returns on a year-end rally for Broadcom shares.


    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.

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