Broadcom Inc. $AVGO Position Cut by Chesley Taft & Associates LLC

Key Points

• Chesley Taft & Associates LLC reduced its shares in Broadcom Inc. by 2.4%, now holding 270,274 shares worth approximately $74.5 million, making it the firm's third-largest position.
• Broadcom's stock price has decreased by 3.8%, with its 12-month high at $374.23 and earnings per share reported at $1.69, exceeding estimates.
• The company declared a quarterly dividend of $0.59, reflecting an annualized yield of 0.7%, with a dividend payout ratio of 60.20%.

Chesley Taft & Associates LLC cut its stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 2.4% during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 270,274 shares of the semiconductor manufacturer's stock after selling 6,674 shares during the period. Broadcom accounts for about 3.3% of Chesley Taft & Associates LLC's portfolio, making the stock its 3rd biggest position. Chesley Taft & Associates LLC's holdings in Broadcom were worth $74,501,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Barnes Dennig Private Wealth Management LLC purchased a new stake in Broadcom during the first quarter valued at approximately $25,000. Cheviot Value Management LLC purchased a new stake in Broadcom during the first quarter valued at approximately $25,000. Inlight Wealth Management LLC purchased a new stake in Broadcom during the first quarter valued at approximately $26,000. Sunbeam Capital Management LLC purchased a new stake in Broadcom during the fourth quarter valued at approximately $28,000. Finally, Vermillion Wealth Management Inc. purchased a new stake in shares of Broadcom in the fourth quarter worth approximately $30,000. 76.43% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on AVGO shares. The Goldman Sachs Group reiterated a "buy" rating and issued a $340.00 price target on shares of Broadcom in a report on Wednesday, August 13th. Morgan Stanley increased their price target on Broadcom from $338.00 to $357.00 and gave the stock an "overweight" rating in a report on Tuesday, September 2nd. UBS Group increased their price target on Broadcom from $290.00 to $345.00 and gave the stock a "buy" rating in a report on Monday, August 25th. Benchmark increased their price target on Broadcom from $315.00 to $385.00 and gave the stock a "buy" rating in a report on Friday, September 5th. Finally, Erste Group Bank upgraded Broadcom from a "hold" rating to a "buy" rating in a report on Thursday, June 5th. Three analysts have rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Buy" and a consensus price target of $356.48.

Insiders Place Their Bets

In related news, CEO Hock E. Tan sold 148,154 shares of Broadcom stock in a transaction dated Wednesday, September 10th. The stock was sold at an average price of $336.67, for a total value of $49,879,007.18. Following the completion of the transaction, the chief executive officer owned 825,998 shares in the company, valued at $278,088,746.66. The trade was a 15.21% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Kirsten M. Spears sold 36,350 shares of Broadcom stock in a transaction dated Tuesday, June 24th. The shares were sold at an average price of $261.27, for a total value of $9,497,164.50. Following the completion of the transaction, the chief financial officer owned 325,587 shares of the company's stock, valued at approximately $85,066,115.49. This represents a 10.04% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have bought 3,550 shares of company stock worth $1,227,869 and have sold 840,522 shares worth $236,959,124. Corporate insiders own 2.00% of the company's stock.

Broadcom Stock Performance

AVGO traded down $0.41 on Friday, reaching $344.94. 41,147,297 shares of the stock were exchanged, compared to its average volume of 26,458,309. The company's 50-day moving average price is $306.64 and its 200 day moving average price is $246.25. The firm has a market capitalization of $1.63 trillion, a PE ratio of 87.99, a PEG ratio of 1.91 and a beta of 1.16. Broadcom Inc. has a fifty-two week low of $138.10 and a fifty-two week high of $374.23. The company has a debt-to-equity ratio of 0.86, a current ratio of 1.50 and a quick ratio of 1.37.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its quarterly earnings data on Thursday, September 4th. The semiconductor manufacturer reported $1.69 earnings per share for the quarter, beating analysts' consensus estimates of $1.66 by $0.03. The business had revenue of $15.95 billion during the quarter, compared to analyst estimates of $15.82 billion. Broadcom had a return on equity of 36.60% and a net margin of 31.59%.The company's revenue was up 22.0% on a year-over-year basis. During the same quarter last year, the business posted $1.24 EPS. Broadcom has set its Q4 2025 guidance at EPS. As a group, sell-side analysts forecast that Broadcom Inc. will post 5.38 EPS for the current fiscal year.

Broadcom Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 30th. Investors of record on Monday, September 22nd will be paid a $0.59 dividend. This represents a $2.36 annualized dividend and a dividend yield of 0.7%. The ex-dividend date is Monday, September 22nd. Broadcom's payout ratio is currently 60.20%.

About Broadcom

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.