Broadcom Inc. $AVGO Shares Sold by Capital Investment Counsel LLC

Key Points

• Capital Investment Counsel LLC reduced its Broadcom stake by 7.5% in the fourth quarter, selling 4,797 shares and leaving it with 59,384 shares worth about $20.6 million.
• Broadcom reported strong quarterly results, with EPS of $2.05 and revenue of $19.31 billion, both ahead of analyst expectations. Revenue rose 29.5% year over year.
• The stock also drew attention from insider selling and mixed analyst sentiment, while reports about a potential OpenAI custom chip deal hit a financing snag, creating uncertainty around a key AI growth catalyst.

Capital Investment Counsel LLC cut its stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 7.5% in the 4th quarter, according to its most recent Form 13F filing with the SEC. The fund owned 59,384 shares of the semiconductor manufacturer's stock after selling 4,797 shares during the period. Broadcom accounts for about 2.9% of Capital Investment Counsel LLC's investment portfolio, making the stock its 3rd biggest holding. Capital Investment Counsel LLC's holdings in Broadcom were worth $20,553,000 as of its most recent filing with the SEC.

Several other large investors have also recently bought and sold shares of the stock. Kornitzer Capital Management Inc. KS boosted its position in Broadcom by 4.7% during the fourth quarter. Kornitzer Capital Management Inc. KS now owns 44,216 shares of the semiconductor manufacturer's stock valued at $15,303,000 after purchasing an additional 1,974 shares during the last quarter. PFA Pension Forsikringsaktieselskab acquired a new stake in shares of Broadcom in the fourth quarter valued at approximately $924,858,000. Acorn Creek Capital LLC increased its stake in shares of Broadcom by 1.6% during the fourth quarter. Acorn Creek Capital LLC now owns 3,240 shares of the semiconductor manufacturer's stock worth $1,121,000 after purchasing an additional 52 shares during the period. CapWealth Advisors LLC increased its stake in shares of Broadcom by 2.8% during the fourth quarter. CapWealth Advisors LLC now owns 2,339 shares of the semiconductor manufacturer's stock worth $810,000 after purchasing an additional 63 shares during the period. Finally, Robertson Stephens Wealth Management LLC increased its stake in shares of Broadcom by 22.9% during the fourth quarter. Robertson Stephens Wealth Management LLC now owns 35,164 shares of the semiconductor manufacturer's stock worth $12,171,000 after purchasing an additional 6,553 shares during the period. 76.43% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling

In other Broadcom news, CFO Kirsten M. Spears sold 36,292 shares of Broadcom stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $321.60, for a total transaction of $11,671,507.20. Following the completion of the transaction, the chief financial officer owned 327,760 shares in the company, valued at approximately $105,407,616. The trade was a 9.97% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Charlie B. Kawwas sold 39,116 shares of the business's stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $321.61, for a total value of $12,580,096.76. Following the completion of the transaction, the insider owned 74,626 shares in the company, valued at $24,000,467.86. The trade was a 34.39% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 324,282 shares of company stock worth $106,425,249 over the last 90 days. Company insiders own 1.90% of the company's stock.

Broadcom Stock Performance

Shares of Broadcom stock opened at $430.00 on Friday. Broadcom Inc. has a one year low of $206.52 and a one year high of $437.68. The firm has a market capitalization of $2.04 trillion, a price-to-earnings ratio of 83.98, a PEG ratio of 0.89 and a beta of 1.43. The business has a 50-day simple moving average of $352.89 and a 200 day simple moving average of $351.28. The company has a debt-to-equity ratio of 0.80, a current ratio of 1.90 and a quick ratio of 1.73.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 EPS for the quarter, beating analysts' consensus estimates of $2.03 by $0.02. The business had revenue of $19.31 billion during 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 firm's revenue was up 29.5% compared to the same quarter last year. During the same period in the previous year, the company posted $1.60 EPS. On average, research analysts anticipate that Broadcom Inc. will post 9.95 earnings per share for the current fiscal year.

Broadcom Announces Dividend

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

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Negative Sentiment: Broadcom shares are under pressure after reports said OpenAI’s planned $18 billion custom chip deal with the company hit a financing roadblock, creating uncertainty around a key AI revenue driver. Broadcom shares slump as OpenAI’s $18B custom chip deal hits financing snag
• Negative Sentiment: Another report framed the OpenAI issue as a major setback for Broadcom’s custom AI chip ambitions, adding concern that one of its flagship customer relationships may not be as immediately monetizable as investors hoped. Broadcom's OpenAI mega AI deal hits $18 billion wall
• Neutral Sentiment: Broadcom also announced VMware by Broadcom VCF 9.1, a product update aimed at accelerating production AI workloads in private clouds, which supports the company’s long-term enterprise AI strategy. Broadcom (AVGO) Launches VCF 9.1 to Accelerate Production AI in Private Clouds
• Neutral Sentiment: Several commentary pieces remained constructive on Broadcom’s position in the AI infrastructure stack, noting that recent hyperscaler results still support demand for chips and networking tied to AI buildouts. Big Tech earnings support Broadcom’s outlook
• Neutral Sentiment: Broadcom was also mentioned in a public-sector VMware partnership update, which could help broaden enterprise distribution but is not likely the main driver of the stock today. evoila U.S. and Carahsoft Partner to Deliver VMware by Broadcom Services to the Public Sector

Analyst Ratings Changes

AVGO has been the topic of a number of recent research reports. Erste Group Bank lowered Broadcom from a "buy" rating to a "hold" rating in a research note on Thursday, April 2nd. Bank of America cut their price objective on Broadcom from $500.00 to $450.00 and set a "buy" rating on the stock in a report on Thursday, March 5th. DA Davidson raised Broadcom to a "hold" rating in a report on Friday, February 13th. Morgan Stanley lifted their target price on Broadcom from $462.00 to $470.00 and gave the stock an "overweight" rating in a report on Friday, March 6th. Finally, Weiss Ratings downgraded Broadcom from a "buy (b-)" rating to a "hold (c+)" rating in a report on Friday, April 24th. Two analysts have rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat.com, Broadcom presently has a consensus rating of "Moderate Buy" and a consensus target price of $435.30.

About Broadcom

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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