Broadcom Inc. $AVGO is Blue Whale Capital LLP's 3rd Largest Position

Key Points

• Blue Whale Capital LLP has reduced its holdings in Broadcom Inc. by 9.5%, maintaining 8.4% of its portfolio in the semiconductor company, which now represents its third-largest position.
• Broadcom reported a quarterly earnings per share of $1.58, surpassing analyst expectations, with revenue reaching $15 billion, marking a significant increase of 20.2% year-over-year.
• The firm recently declared a $0.59 quarterly dividend, contributing to an annualized dividend yield of 0.8%, with a dividend payout ratio of 88.39%.

Blue Whale Capital LLP trimmed its position in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 9.5% in the 1st quarter, according to its most recent disclosure with the SEC. The institutional investor owned 619,209 shares of the semiconductor manufacturer's stock after selling 65,371 shares during the quarter. Broadcom makes up approximately 8.4% of Blue Whale Capital LLP's investment portfolio, making the stock its 3rd largest position. Blue Whale Capital LLP's holdings in Broadcom were worth $103,674,000 at the end of the most recent quarter.

Several other large investors have also recently made changes to their positions in AVGO. Barnes Dennig Private Wealth Management LLC purchased a new stake in shares of Broadcom during the first quarter worth approximately $25,000. Cheviot Value Management LLC purchased a new stake in shares of Broadcom during the first quarter worth approximately $25,000. Inlight Wealth Management LLC acquired a new position in Broadcom during the first quarter worth $26,000. Sunbeam Capital Management LLC acquired a new position in Broadcom during the fourth quarter worth $28,000. Finally, Vermillion Wealth Management Inc. acquired a new position in Broadcom during the fourth quarter worth $30,000. 76.43% of the stock is currently owned by hedge funds and other institutional investors.

Broadcom Trading Down 0.5%

NASDAQ:AVGO opened at $289.60 on Friday. The stock's 50 day moving average price is $281.94 and its 200 day moving average price is $231.84. The company has a market capitalization of $1.36 trillion, a PE ratio of 108.46, a P/E/G ratio of 2.07 and a beta of 1.15. The company has a quick ratio of 0.98, a current ratio of 1.08 and a debt-to-equity ratio of 0.89. Broadcom Inc. has a 52-week low of $134.90 and a 52-week high of $317.35.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its quarterly earnings results on Thursday, June 5th. The semiconductor manufacturer reported $1.58 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.57 by $0.01. The firm had revenue of $15 billion for the quarter, compared to the consensus estimate of $14.98 billion. Broadcom had a return on equity of 35.49% and a net margin of 22.64%.The firm's quarterly revenue was up 20.2% compared to the same quarter last year. During the same quarter last year, the business posted $10.96 EPS. Broadcom has set its Q3 2025 guidance at EPS. On average, research analysts anticipate that Broadcom Inc. will post 5.38 EPS for the current year.

Broadcom Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, June 30th. Stockholders of record on Friday, June 20th were issued a $0.59 dividend. This represents a $2.36 annualized dividend and a dividend yield of 0.8%. The ex-dividend date of this dividend was Friday, June 20th. Broadcom's dividend payout ratio (DPR) is currently 88.39%.

Analysts Set New Price Targets

Several equities analysts have recently commented on the company. Evercore ISI reaffirmed an "outperform" rating and issued a $304.00 price target (up previously from $267.00) on shares of Broadcom in a research note on Friday, June 6th. Arete Research upgraded Broadcom to a "strong-buy" rating in a report on Monday, July 28th. Cantor Fitzgerald restated an "overweight" rating and set a $300.00 target price on shares of Broadcom in a research note on Friday, June 6th. Erste Group Bank raised Broadcom from a "hold" rating to a "buy" rating in a report on Thursday, June 5th. Finally, Truist Financial set a $295.00 price target on Broadcom and gave the company a "buy" rating in a report on Friday, June 6th. Three research analysts have rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat.com, Broadcom has a consensus rating of "Buy" and a consensus price target of $298.67.

Insiders Place Their Bets

In other news, Director Gayla J. Delly sold 3,000 shares of the firm's stock in a transaction that occurred on Thursday, June 26th. The stock was sold at an average price of $265.13, for a total value of $795,390.00. Following the completion of the sale, the director directly owned 33,352 shares of the company's stock, valued at $8,842,615.76. This trade represents a 8.25% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Kirsten M. Spears sold 36,350 shares of Broadcom stock in a transaction on Tuesday, June 24th. The stock was sold at an average price of $261.27, for a total value of $9,497,164.50. Following the transaction, the chief financial officer directly owned 325,587 shares of the company's stock, valued at approximately $85,066,115.49. This represents a 10.04% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 830,516 shares of company stock worth $217,286,457. Corporate insiders own 2.00% of the company's stock.

Broadcom Company Profile

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.

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