Broadcom Director Harry You Sells $1.57 Million in Stock

Harry You, a director at Broadcom, has recently sold shares worth approximately $1.57 million. The shares were sold at an average price of about $240.00 each, leading to a total transaction value of $1,569,626. Following this sale, You still owns 30,450 shares in the semiconductor company. This ownership figure includes adjustments from a ten-for-one forward stock split that took effect in July 2024, as well as 1,890 restricted stock units.

Currently, Broadcom is trading with a price-to-earnings (P/E) ratio of 173.5, which some analysts consider to be overvalued according to InvestingPro's Fair Value analysis. For those interested in exploring more details regarding Broadcom’s current valuation, a comprehensive Pro Research Report is available that includes additional insights and ProTips.

In recent news, Broadcom has attracted attention from various financial firms, particularly due to the company’s strong growth in the artificial intelligence (AI) sector. Firms such as Bernstein, SocGen Group, and JPMorgan have maintained positive ratings for Broadcom, highlighting its strong performance in AI revenue and the anticipated potential for further growth. Goldman Sachs has also reaffirmed its Buy rating for Broadcom, revising the 12-month price target to $240.

In its latest fiscal fourth-quarter 2024 earnings report, Broadcom announced revenues of $14.1 billion, with earnings per share (EPS) of $1.42, which slightly exceeded the EPS estimate of $1.39. For the upcoming first quarter of fiscal year 2025, Broadcom projects revenues of $14.6 billion, aiming for an EBITDA margin of approximately 66% and an implied EPS of $1.51.

Broadcom has reported significant growth in its AI revenues, which have tripled year-over-year for fiscal year 2024, reaching $12.2 billion. This impressive performance has led to revisions in price targets by several financial institutions, including Goldman Sachs, TD Cowen, Piper Sandler, Cantor Fitzgerald, Baird, and Bernstein SocGen Group.

Looking forward, Broadcom estimates that its AI revenue will grow to between $17 and $18 billion in fiscal year 2025, representing a notable 40% increase year-over-year. This growth is supported by the company's serviceable available market (SAM) for its three existing AI customers, which is projected to expand from a range of $15-20 billion to between $60-90 billion by fiscal year 2027.

Broadcom's financial strength is rated positively, bolstered by robust profitability and favorable momentum metrics. Analysts at CFRA have responded well to the company’s recent 11% increase in its dividend and anticipate that there will be a focus on reducing debt, noting a $2.5 billion debt reduction in the October quarter. They expect Broadcom to generate over $30 billion in free cash flow for the fiscal year 2025.

Broadcom, Stock, Sale