Bristol Gate Capital Partners Inc. Decreases Stake in Broadcom Inc. $AVGO

Key Points

• Bristol Gate Capital Partners cut its Broadcom stake by 27.3% in the fourth quarter, though Broadcom still remained a meaningful holding worth about $72.9 million.
• Broadcom reported a strong quarterly result, with EPS of $2.05 and revenue of $19.31 billion, both slightly ahead of Wall Street expectations, while revenue rose 29.5% year over year.
• The company continues to reward shareholders and attract analyst attention: it paid a $0.65 quarterly dividend, and analysts currently rate the stock a Moderate Buy with an average price target of $453.17.

Bristol Gate Capital Partners Inc. lowered its stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 27.3% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 210,649 shares of the semiconductor manufacturer's stock after selling 79,098 shares during the period. Broadcom accounts for 4.2% of Bristol Gate Capital Partners Inc.'s holdings, making the stock its 17th biggest position. Bristol Gate Capital Partners Inc.'s holdings in Broadcom were worth $72,906,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors have also made changes to their positions in the stock. Vanguard Group Inc. increased its stake in shares of Broadcom by 0.8% in the fourth quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer's stock worth $167,064,997,000 after acquiring an additional 3,919,715 shares during the period. Invesco Ltd. boosted its holdings in Broadcom by 1.8% during the third quarter. Invesco Ltd. now owns 39,149,651 shares of the semiconductor manufacturer's stock worth $12,915,861,000 after buying an additional 700,021 shares in the last quarter. Legal & General Group Plc boosted its holdings in Broadcom by 2.3% during the third quarter. Legal & General Group Plc now owns 33,450,786 shares of the semiconductor manufacturer's stock worth $11,035,749,000 after buying an additional 748,709 shares in the last quarter. Franklin Resources Inc. boosted its holdings in Broadcom by 4.0% during the third quarter. Franklin Resources Inc. now owns 29,511,195 shares of the semiconductor manufacturer's stock worth $9,736,038,000 after buying an additional 1,124,590 shares in the last quarter. Finally, Amundi boosted its holdings in Broadcom by 3.3% during the third quarter. Amundi now owns 22,216,816 shares of the semiconductor manufacturer's stock worth $7,453,320,000 after buying an additional 716,523 shares in the last quarter. Hedge funds and other institutional investors own 76.43% of the company's stock.

Broadcom Stock Performance

NASDAQ:AVGO opened at $421.86 on Thursday. The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.73 and a current ratio of 1.90. The company has a fifty day moving average of $378.80 and a two-hundred day moving average of $357.40. The stock has a market capitalization of $2.00 trillion, a PE ratio of 82.39, a P/E/G ratio of 0.87 and a beta of 1.43. Broadcom Inc. has a fifty-two week low of $234.43 and a fifty-two week high of $442.36.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its quarterly earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.03 by $0.02. The firm had revenue of $19.31 billion for the quarter, compared to analyst estimates of $19.10 billion. Broadcom had a return on equity of 38.61% and a net margin of 36.57%.The business's revenue was up 29.5% on a year-over-year basis. During the same period in the previous year, the company posted $1.60 earnings per share. As a group, research analysts forecast that Broadcom Inc. will post 9.91 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Monday, March 23rd were given a $0.65 dividend. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date was Monday, March 23rd. Broadcom's dividend payout ratio is 50.78%.

Insiders Place Their Bets

In other news, Director Justine Page sold 2,018 shares of the stock in a transaction dated Wednesday, April 8th. The shares were sold at an average price of $353.00, for a total value of $712,354.00. Following the completion of the sale, the director directly owned 18,164 shares in the company, valued at $6,411,892. This represents a 10.00% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, insider Charlie B. Kawwas sold 10,000 shares of the stock in a transaction dated Wednesday, April 8th. The shares were sold at an average price of $345.23, for a total transaction of $3,452,300.00. Following the completion of the sale, the insider owned 787,184 shares of the company's stock, valued at $271,759,532.32. This trade represents a 1.25% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 324,282 shares of company stock valued at $106,425,249. Corporate insiders own 1.90% of the company's stock.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom unveiled the industry’s first integrated Wi‑Fi 8 SoCs for mesh and multi-gigabit routers, extending its leadership in home networking chips and strengthening its position in a key growth market. Article Title
• Positive Sentiment: The company also launched the BCM68850, a 50G PON home gateway SoC with an integrated neural processor and Wi‑Fi 8 support, highlighting Broadcom’s push into edge AI and residential broadband infrastructure. Article Title
• Positive Sentiment: Broadcom’s collaboration with Samsung on a 5G and Wi‑Fi 8 fixed wireless access platform suggests expanding design wins and could support future revenue growth in broadband connectivity. Article Title
• Neutral Sentiment: Analysts continue to rate Broadcom a “Moderate Buy,” which supports a constructive but not dramatically changed view of the stock. Article Title
• Neutral Sentiment: Some market commentary is shifting investor focus toward Qualcomm’s new AI chip deal and broader semiconductor AI winners, which may temporarily distract from Broadcom’s momentum in the AI infrastructure trade. Article Title

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on AVGO shares. Weiss Ratings downgraded shares of Broadcom from a "buy (b-)" rating to a "hold (c+)" rating in a report on Friday, April 24th. Bank of America lowered their price target on shares of Broadcom from $500.00 to $450.00 and set a "buy" rating on the stock in a report on Thursday, March 5th. Seaport Research Partners reissued a "neutral" rating on shares of Broadcom in a report on Wednesday, April 8th. Evercore reissued an "outperform" rating and set a $582.00 price target on shares of Broadcom in a report on Tuesday, May 19th. Finally, Erste Group Bank downgraded shares of Broadcom from a "buy" rating to a "hold" rating in a report on Thursday, April 2nd. One analyst has rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat, Broadcom currently has a consensus rating of "Moderate Buy" and an average price target of $453.17.

Broadcom Company 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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