Bank of New York Mellon Corp Reduces Stock Position in Broadcom Inc. $AVGO

Key Points

• Bank of New York Mellon reduced its Broadcom stake by 4.3% in the first quarter, but it still holds about 28.7 million shares worth roughly $8.89 billion, making Broadcom its sixth-largest position.
• Broadcom continues to attract mixed investor sentiment: analysts remain broadly bullish with a consensus Moderate Buy rating and a $493.24 target, while some coverage raises concerns about valuation and an industry-wide slowdown in chip spending.
• The company recently posted strong quarterly results, beating EPS and revenue estimates with 47.9% year-over-year revenue growth, and it also paid a quarterly dividend of $0.65 per share for a 0.7% yield.

Bank of New York Mellon Corp decreased its holdings in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 4.3% in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 28,712,968 shares of the semiconductor manufacturer's stock after selling 1,285,490 shares during the quarter. Broadcom makes up 1.6% of Bank of New York Mellon Corp's holdings, making the stock its 6th biggest position. Bank of New York Mellon Corp owned about 0.61% of Broadcom worth $8,886,951,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Fullerton Advisors LLC lifted its stake in shares of Broadcom by 1.3% during the 1st quarter. Fullerton Advisors LLC now owns 1,989 shares of the semiconductor manufacturer's stock worth $616,000 after buying an additional 25 shares during the last quarter. NORTHSTAR ASSET MANAGEMENT Co grew its stake in Broadcom by 0.5% in the 1st quarter. NORTHSTAR ASSET MANAGEMENT Co now owns 5,350 shares of the semiconductor manufacturer's stock valued at $1,656,000 after buying an additional 25 shares during the last quarter. RFG Holdings Inc. raised its holdings in Broadcom by 0.3% in the 1st quarter. RFG Holdings Inc. now owns 8,499 shares of the semiconductor manufacturer's stock valued at $2,631,000 after acquiring an additional 26 shares during the period. Yukon Wealth Management Inc. raised its holdings in Broadcom by 1.1% in the 1st quarter. Yukon Wealth Management Inc. now owns 2,501 shares of the semiconductor manufacturer's stock valued at $774,000 after acquiring an additional 26 shares during the period. Finally, Capital Planning LLC lifted its position in Broadcom by 0.7% during the first quarter. Capital Planning LLC now owns 4,044 shares of the semiconductor manufacturer's stock worth $1,252,000 after acquiring an additional 28 shares during the last quarter. 76.43% of the stock is owned by institutional investors.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Standard Chartered chose Broadcom to support a long-term modernization of its global banking infrastructure, underscoring Broadcom’s role in secure private-cloud and enterprise networking solutions. Standard Chartered Selects Broadcom to Deliver Secure, Always-On Banking Services at Global Scale
• Positive Sentiment: Wall Street commentary continues to describe Broadcom as a core AI beneficiary, and some analysts have raised price targets even after the stock pullback. As Shares Fall, Analyst Are Boosting Their Broadcom Price Targets
• Neutral Sentiment: Broadcom remains a major talking point in AI-focused market coverage, with some investors viewing it as an indicator for the broader market and semiconductor cycle. Jim Cramer Says Broadcom Will Tell You When the Market Is About to Turn
• Negative Sentiment: Broadcom is facing renewed skepticism around valuation, with one report asking whether the AI story has made the stock too expensive. Has Broadcom Become Too Expensive for Its AI Story?
• Negative Sentiment: The stock is also being hit by a broader selloff in semiconductor names as investors rotate away from AI-capex winners and worry about a slowdown in chip spending. Marvell Drops 8% as AI Capex Slowdown Fears Weigh on Chips; Broadcom, AMD, and Intel Slide
• Negative Sentiment: Broadcom is also dealing with regulatory uncertainty after reports said it faces an EU antitrust review tied to VMware licensing changes. Broadcom (AVGO) Faces EU Antitrust Review Over VMware Licensing Changes

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on AVGO shares. Seaport Research Partners reaffirmed a "neutral" rating on shares of Broadcom in a research report on Wednesday, April 8th. Royal Bank Of Canada lifted their price target on Broadcom from $360.00 to $400.00 and gave the stock a "sector perform" rating in a report on Thursday, June 4th. The Goldman Sachs Group restated a "buy" rating and issued a $525.00 price target on shares of Broadcom in a research note on Thursday, June 4th. UBS Group set a $485.00 price objective on Broadcom and gave the company a "buy" rating in a report on Thursday, June 4th. Finally, Wells Fargo & Company reissued an "overweight" rating and set a $545.00 target price (up from $430.00) on shares of Broadcom in a report on Thursday, May 14th. One investment analyst has rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating and four have given a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $493.24.

Broadcom Trading Down 1.0%

Shares of NASDAQ:AVGO opened at $370.83 on Friday. The company has a market capitalization of $1.76 trillion, a P/E ratio of 61.81, a P/E/G ratio of 0.65 and a beta of 1.45. Broadcom Inc. has a 1 year low of $273.00 and a 1 year high of $495.00. The company has a debt-to-equity ratio of 0.71, a current ratio of 2.24 and a quick ratio of 2.01. The business's 50 day simple moving average is $401.29 and its 200 day simple moving average is $365.31.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its quarterly earnings data on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, topping analysts' consensus estimates of $2.40 by $0.04. The firm had revenue of $22.19 billion for the quarter, compared to analyst estimates of $22.13 billion. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.The company's revenue was up 47.9% on a year-over-year basis. During the same quarter last year, the company earned $1.58 EPS. On average, research analysts anticipate that Broadcom Inc. will post 10.24 EPS for the current fiscal year.

Broadcom Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 22nd were given a $0.65 dividend. The ex-dividend date was Monday, June 22nd. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.7%. Broadcom's dividend payout ratio (DPR) is presently 43.33%.

Insider Buying and Selling

In related news, Director Justine Page sold 1,602 shares of the business's stock in a transaction dated Monday, June 29th. The stock was sold at an average price of $373.86, for a total value of $598,923.72. Following the completion of the transaction, the director owned 17,426 shares of the company's stock, valued at $6,514,884.36. The trade was a 8.42% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Harry L. You acquired 1,000 shares of the business's stock in a transaction that occurred on Thursday, June 11th. The shares were purchased at an average cost of $373.57 per share, with a total value of $373,570.00. Following the transaction, the director directly owned 38,466 shares of the company's stock, valued at $14,369,743.62. This trade represents a 2.67% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders sold 61,644 shares of company stock worth $24,016,214 in the last ninety days. 1.90% of the stock is owned by company insiders.

Broadcom Profile

Broadcom Inc NASDAQ: AVGO is a global technology company that designs, develops and supplies semiconductor and infrastructure software solutions for a broad range of markets. The company's semiconductor business provides components and systems for wired and wireless communications, enterprise and cloud storage, networking and broadband access, serving original equipment manufacturers, cloud service providers, telecommunications carriers and industrial customers worldwide. Broadcom is headquartered in Irvine, California, and operates globally with research, development and sales organizations across North America, Europe and Asia.

On the semiconductor side, Broadcom's portfolio includes system-on-chip (SoC) and application-specific integrated circuit (ASIC) solutions, radio-frequency and connectivity components, Ethernet switching and PHY devices, storage adapters and controllers, optical transceivers and other networking silicon.

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