Adage Capital Partners GP L.L.C. Trims Stock Holdings in Broadcom Inc. $AVGO

Key Points

• Adage Capital Partners GP L.L.C. decreased its stake in Broadcom Inc. to 4,071,060 shares, representing 1.3% of its investment portfolio, after selling 178,300 shares in the first quarter.
• Broadcom reported $15 billion in revenue for the recent quarter, surpassing analyst estimates, with a net margin of 22.64% and earnings per share of $1.58.
• The company recently declared a quarterly dividend of $0.59 per share, contributing to an annualized dividend yield of 0.8% and a payout ratio of 88.39%.

Adage Capital Partners GP L.L.C. trimmed its stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 4.2% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 4,071,060 shares of the semiconductor manufacturer's stock after selling 178,300 shares during the period. Broadcom comprises about 1.3% of Adage Capital Partners GP L.L.C.'s investment portfolio, making the stock its 9th largest position. Adage Capital Partners GP L.L.C. owned 0.09% of Broadcom worth $681,618,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other large investors also recently made changes to their positions in AVGO. Barnes Dennig Private Wealth Management LLC bought a new stake in shares of Broadcom during the first quarter worth $25,000. Cheviot Value Management LLC bought a new stake in shares of Broadcom during the first quarter worth $25,000. Inlight Wealth Management LLC bought a new stake in shares of Broadcom during the first quarter worth $26,000. Sunbeam Capital Management LLC bought a new stake in shares of Broadcom during the fourth quarter worth $28,000. Finally, Vermillion Wealth Management Inc. acquired a new position in shares of Broadcom during the fourth quarter valued at $30,000. Institutional investors own 76.43% of the company's stock.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on AVGO shares. Wells Fargo & Company upped their price target on Broadcom from $255.00 to $345.00 and gave the company an "equal weight" rating in a research note on Friday. HSBC raised Broadcom from a "hold" rating to a "buy" rating and set a $400.00 price target on the stock in a research note on Tuesday, June 24th. Truist Financial upped their price target on Broadcom from $295.00 to $365.00 and gave the company a "buy" rating in a research note on Friday. Arete Research raised Broadcom to a "strong-buy" rating in a research note on Monday, July 28th. Finally, TD Cowen upped their price target on Broadcom from $355.00 to $370.00 and gave the company a "buy" rating in a research note on Friday. Three analysts have rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat, Broadcom currently has a consensus rating of "Buy" and an average target price of $351.00.

Broadcom Trading Up 9.4%

Shares of Broadcom stock traded up $28.79 during trading hours on Friday, hitting $334.89. The company's stock had a trading volume of 78,318,626 shares, compared to its average volume of 17,635,120. Broadcom Inc. has a 12 month low of $134.90 and a 12 month high of $356.34. The stock has a 50 day moving average of $292.09 and a 200 day moving average of $237.25. The company has a market capitalization of $1.58 trillion, a PE ratio of 85.43, a price-to-earnings-growth ratio of 2.17 and a beta of 1.16. The company has a debt-to-equity ratio of 0.89, a current ratio of 1.08 and a quick ratio of 0.98.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its quarterly earnings data on Thursday, September 4th. The semiconductor manufacturer reported $1.69 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.66 by $0.03. The business had revenue of $15.95 billion during the quarter, compared to the consensus estimate of $15.82 billion. Broadcom had a return on equity of 37.17% and a net margin of 31.59%.Broadcom's quarterly revenue was up 22.0% on a year-over-year basis. During the same period last year, the company earned $1.24 earnings per share. Broadcom has set its Q4 2025 guidance at EPS. Analysts predict that Broadcom Inc. will post 5.38 earnings per share for the current year.

Broadcom Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 30th. Stockholders of record on Monday, September 22nd will be given a $0.59 dividend. This represents a $2.36 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend is Monday, September 22nd. Broadcom's dividend payout ratio (DPR) is presently 88.39%.

Insider Buying and Selling

In related news, Director Justine Page sold 800 shares of Broadcom stock in a transaction that occurred on Thursday, August 14th. The stock was sold at an average price of $307.46, for a total transaction of $245,968.00. Following the completion of the sale, the director directly owned 23,782 shares of the company's stock, valued at approximately $7,312,013.72. This trade represents a 3.25% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Henry Samueli sold 473,898 shares of Broadcom stock in a transaction that occurred on Wednesday, June 25th. The stock was sold at an average price of $265.33, for a total value of $125,739,356.34. Following the sale, the director directly owned 38,188,575 shares of the company's stock, valued at approximately $10,132,574,604.75. The trade was a 1.23% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 830,516 shares of company stock valued at $217,286,457. Insiders own 2.00% of the company's stock.

About Broadcom

Broadcom Inc designs, develops, and supplies various semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. The company operates in two segments, Semiconductor Solutions and Infrastructure Software.