Advisors Capital Management LLC Reduces Stake in Broadcom Inc. $AVGO

Key Points

• Advisors Capital Management LLC reduced its stake in Broadcom by 25.8%, selling 322,070 shares and now holding 928,530 shares worth approximately $155.46 million.
• Recent insider sales included Director Justine Page selling 800 shares for about $245,968 and Henry Samueli offloading 473,898 shares for over $125 million, indicating significant movements among top executives.
• Analysts have raised Broadcom's target prices, with Benchmark setting a new target of $385.00 and HSBC upgrading the stock to a buy with a $400.00 target, reflecting strong market confidence.

Advisors Capital Management LLC reduced its position in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 25.8% in the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 928,530 shares of the semiconductor manufacturer's stock after selling 322,070 shares during the period. Broadcom comprises approximately 2.4% of Advisors Capital Management LLC's holdings, making the stock its 3rd largest position. Advisors Capital Management LLC's holdings in Broadcom were worth $155,464,000 at the end of the most recent quarter.

A number of other hedge funds also recently added to or reduced their stakes in the company. Barnes Dennig Private Wealth Management LLC purchased a new stake in Broadcom during the 1st quarter valued at $25,000. Cheviot Value Management LLC purchased a new stake in Broadcom during the 1st quarter valued at $25,000. Inlight Wealth Management LLC purchased a new stake in Broadcom during the 1st quarter valued at $26,000. Sunbeam Capital Management LLC purchased a new stake in Broadcom during the 4th quarter valued at $28,000. Finally, Vermillion Wealth Management Inc. purchased a new stake in Broadcom during the 4th quarter valued at $30,000. 76.43% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on the company. Barclays upped their price objective on Broadcom from $265.00 to $400.00 and gave the stock an "overweight" rating in a research note on Friday, September 5th. Morgan Stanley upped their price objective on Broadcom from $338.00 to $357.00 and gave the stock an "overweight" rating in a research note on Tuesday, September 2nd. Wells Fargo & Company upped their target price on shares of Broadcom from $255.00 to $345.00 and gave the stock an "equal weight" rating in a report on Friday, September 5th. Sanford C. Bernstein upped their target price on shares of Broadcom from $295.00 to $400.00 and gave the stock an "outperform" rating in a report on Friday, September 5th. Finally, JPMorgan Chase & Co. upped their target price on shares of Broadcom from $325.00 to $400.00 and gave the stock an "overweight" rating in a report on Friday, September 5th. Three equities research analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Buy" and a consensus target price of $354.04.

Insider Buying and Selling

In other news, CEO Hock E. Tan sold 148,154 shares of the firm's stock in a transaction that occurred on Wednesday, September 10th. The shares were sold at an average price of $336.67, for a total transaction of $49,879,007.18. Following the transaction, the chief executive officer directly owned 825,998 shares of the company's stock, valued at approximately $278,088,746.66. This trade represents a 15.21% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Henry Samueli sold 473,898 shares of the firm's stock in a transaction that occurred on Wednesday, June 25th. The stock was sold at an average price of $265.33, for a total transaction of $125,739,356.34. Following the transaction, the director directly owned 38,188,575 shares in the company, valued at approximately $10,132,574,604.75. This trade represents a 1.23% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders bought 3,550 shares of company stock worth $1,227,869 and sold 850,912 shares worth $234,854,489. Company insiders own 2.00% of the company's stock.

Broadcom Price Performance

Shares of NASDAQ AVGO traded up $0.24 during mid-day trading on Friday, hitting $359.87. 31,929,014 shares of the company's stock traded hands, compared to its average volume of 25,328,086. The company's 50-day moving average is $300.31 and its two-hundred day moving average is $242.19. The company has a debt-to-equity ratio of 0.86, a current ratio of 1.50 and a quick ratio of 1.37. The company has a market capitalization of $1.69 trillion, a P/E ratio of 91.80, a PEG ratio of 1.99 and a beta of 1.16. Broadcom Inc. has a 1 year low of $138.10 and a 1 year high of $374.23.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its earnings results on Thursday, September 4th. The semiconductor manufacturer reported $1.69 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.66 by $0.03. The firm had revenue of $15.95 billion for the quarter, compared to analysts' expectations of $15.82 billion. Broadcom had a net margin of 31.59% and a return on equity of 36.60%. The business's revenue was up 22.0% compared to the same quarter last year. During the same period in the prior year, the company earned $1.24 EPS. Broadcom has set its Q4 2025 guidance at EPS. On average, equities analysts anticipate that Broadcom Inc. will post 5.38 EPS for the current fiscal year.

Broadcom Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 30th. Investors 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 yield of 0.7%. The ex-dividend date of this dividend is Monday, September 22nd. Broadcom's dividend payout ratio is 60.20%.

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.