Stock Market

Nancy Pelosi Just Bought Broadcom (AVGO) Stock Calls Ahead of Its Split

Source: Alexandros Michailidis / Shutterstock.com

Representative Nancy Pelosi is back with another set of trades after an extremely successful 2024 thus far. According to Unusual Whales, the former Speaker of the House was up by 28% year-to-date as of June, more than doubling the S&P 500’s return of 11.5%%. The Pelosi family’s purchase of Nvidia (NASDAQ:NVDA) call options last November has contributed over $4 million to those gains.

Between June 24 and July 1, Pelosi made a total of four trades. On June 24, she sold off 2,500 shares of Tesla (NASDAQ:TSLA) while buying 20 Broadcom (NASDAQ:AVGO) call options with a strike price of $800 and an expiration date of June 20, 2025. Two days later, she purchased 10,000 shares of NVDA. Finally, she disclosed the sale of 2,000 shares of Visa (NYSE:V) on July 1.

AVGO Stock: Pelosi Purchases Call Options

Pelosi’s purchase of AVGO stock comes just a few weeks before the company will split its shares in a 10-for-1 stock split on July 15. Like Nvidia, Broadcom has benefitted greatly from the AI boom and is up by 59% in 2024.

During the second quarter, the semiconductor designer’s revenue grew by a significant 43% to $12.49 billion. Broadcom should continue to benefit as long as more opportunities for AI emerge, servicing well-capitalized customers like Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) and Meta Platforms (NASDAQ:META).

Broadcom has guided for $51 billion in revenue for fiscal year 2024. Wall Street analysts expect $51.48 billion, implying that they believe that Broadcom is guiding conservatively.

Investors have followed Pelosi’s trades for several years now due to their successful outcomes. According to Quiver Quant’s Nancy Pelosi Strategy, which seeks to emulate the Pelosi family’s common stock portfolio, Pelosi has churned out a compound annual growth rate (CAGR) of 22.79% since 2014. Her one-year return is 36.29% compared to the S&P 500Pelosi has churned out a compound annual growth rate (CAGR) of 22.79% since 2024’s total return of 26.16%.

There is a caveat, however. Pelosi doesn’t make the trades herself. Rather, it’s her husband, Paul Pelosi.

“Speaker Pelosi does not own any stocks, and she has no prior knowledge or subsequent involvement in any transactions,” said a Pelosi spokesperson.

Mr. Pelosi has a long financial career and is the founder of investment firm Financial Leasing Services. Other stocks in the Pelosi family’s portfolio include Netflix (NASDAQ:NFLX), Salesforce (NYSE:CRM) and Disney (NYSE:DIS).

On the date of publication, Eddie Pan held LONG positions in NVDA, GOOGL and META. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

Source link

Share with your friends!

Leave a Reply

Your email address will not be published. Required fields are marked *

Sign up now for breaking stock alerts

Subscribe to our mailing list and get interesting stuff and updates to your email inbox.

Thank you for subscribing.

Something went wrong.