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Broadcom stock is up more than 50% this year.
Dreamstime
Broadcom
stock soared this year, and a director of the chip maker bought a large block of shares on the open market.
Shares of Broadcom (ticker: AVGO) has gained more than 50% since the start of January. Earnings reports have been strong, and some observers see the company as a play on artificial intelligence.
On Aug. 31, Broadcom stock hit a record intraday high of $923.67; after the market closed that day, the company reported a strong fiscal third quarter.
A week later, on Wednesday, Sept. 6, director Check Kian Low paid $9.6 million for 11,000 Broadcom shares, an average price of $872.03 each. He now owns 15,951 shares, according to a form he filed with the Securities and Exchange Commission.
Low declined to comment on his stock purchase. A Broadcom director since December 2016, Low is partner and director of investment-management firm NewSmith Capital Partners LLP, and owner and director of Cluny Capital Limited (BVI). This is his first open-market purchase of Broadcom stock; other shares he owns were gleaned from grants of restricted stock units for his service as a director.
Low’s stake far exceeds Broadcom’s stock-ownership guidelines, which requires nonemployee directors to own the equivalent of five times the annual cash retainer in stock. The retainer in fiscal 2022 was $90,000.
Inside Scoop is a regular Barron’s feature covering stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.
Write to Ed Lin at edward.lin@barrons.com and follow @BarronsEdLin.
