Broadcom Inc. $AVGO Shares Sold by Kepler Cheuvreux Suisse SA

Key Points

• Kepler Cheuvreux Suisse SA reduced its Broadcom stake by 15.3% in the first quarter, selling 13,222 shares and leaving it with 73,346 shares valued at about $22.7 million. Broadcom remained a meaningful holding, ranking as the firm’s 22nd largest position.
• Broadcom beat earnings expectations in its latest quarterly report, posting EPS of $2.44 versus $2.40 expected and revenue of $22.19 billion, up 47.9% year over year. Analysts now expect the company to earn $10.24 per share for the current fiscal year.
• The company also reinforced shareholder returns and positive sentiment with a quarterly dividend of $0.65 per share, while Wall Street maintains a generally bullish view with a “Moderate Buy” consensus and an average price target of $493.24. However, insider and analyst activity remains mixed, with both sales and a recent downgrade among the reported moves.

Kepler Cheuvreux Suisse SA cut its stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 15.3% during the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 73,346 shares of the semiconductor manufacturer's stock after selling 13,222 shares during the quarter. Broadcom comprises about 1.6% of Kepler Cheuvreux Suisse SA's investment portfolio, making the stock its 22nd largest position. Kepler Cheuvreux Suisse SA's holdings in Broadcom were worth $22,696,000 as of its most recent filing with the Securities & Exchange Commission.

Other large investors have also made changes to their positions in the company. ROSS JOHNSON & Associates LLC grew its position in Broadcom by 1,320.0% during the fourth quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer's stock worth $25,000 after buying an additional 66 shares during the period. Networth Advisors LLC lifted its position in shares of Broadcom by 546.2% during the 1st quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer's stock valued at $26,000 after acquiring an additional 71 shares during the period. SWAN Capital LLC boosted its stake in shares of Broadcom by 261.9% during the 4th quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer's stock worth $26,000 after acquiring an additional 55 shares in the last quarter. Miller Global Investments LLC purchased a new stake in shares of Broadcom during the 4th quarter worth approximately $31,000. Finally, Nvest Wealth Strategies Inc. acquired a new stake in shares of Broadcom in the 4th quarter worth approximately $33,000. Hedge funds and other institutional investors own 76.43% of the company's stock.

Broadcom Trading Up 4.8%

Broadcom stock opened at $388.69 on Thursday. The stock has a 50-day moving average price of $405.37 and a 200 day moving average price of $363.44. Broadcom Inc. has a 52 week low of $269.58 and a 52 week high of $495.00. The stock has a market cap of $1.85 trillion, a PE ratio of 64.78, a P/E/G ratio of 0.65 and a beta of 1.45. The company has a current ratio of 2.24, a quick ratio of 2.01 and a debt-to-equity ratio of 0.71.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.40 by $0.04. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The company had revenue of $22.19 billion for the quarter, compared to analyst estimates of $22.13 billion. During the same period in the prior year, the firm earned $1.58 EPS. The firm's quarterly revenue was up 47.9% on a year-over-year basis. Equities research analysts predict that Broadcom Inc. will post 10.24 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 22nd were given a dividend of $0.65 per share. The ex-dividend date was Monday, June 22nd. This represents a $2.60 dividend on an annualized basis and a yield of 0.7%. Broadcom's dividend payout ratio (DPR) is 43.33%.

Wall Street Analyst Weigh In

AVGO has been the subject of several research reports. Weiss Ratings cut Broadcom from a "buy (b)" rating to a "buy (b-)" rating in a report on Friday, June 26th. Wall Street Zen upgraded Broadcom from a "buy" rating to a "strong-buy" rating in a research report on Wednesday, July 1st. Susquehanna reaffirmed a "positive" rating and set a $490.00 price target (up from $450.00) on shares of Broadcom in a research note on Thursday, May 28th. Morgan Stanley set a $502.00 target price on shares of Broadcom and gave the stock an "overweight" rating in a research report on Thursday, June 4th. Finally, DA Davidson upped their price target on shares of Broadcom from $375.00 to $400.00 and gave the company a "neutral" rating in a report on Thursday, June 4th. One research analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and four have assigned a Hold rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $493.24.

Broadcom News Roundup

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Apple expanded its Broadcom relationship with a $30 billion-plus chipmaking commitment, which should provide Broadcom with long-term revenue visibility and support for its AI/custom silicon growth story. Reuters: Apple to spend $30 billion in Broadcom chips deal that will see Colorado factory expand
• Positive Sentiment: Apple’s deal is being framed as a major U.S. manufacturing win and one of Broadcom’s biggest customer commitments, which could lift sentiment around AVGO’s AI infrastructure opportunity. TechCrunch: Apple to produce Made in America wireless chips with Broadcom
• Positive Sentiment: Investor attention is also being fueled by bullish coverage highlighting Broadcom as a top stock pick and an increasingly attractive AI semiconductor name after recent pullbacks. Insider Monkey: Top 5 Stocks to Buy According to Whale Rock Capital Management
• Neutral Sentiment: Some commentary says Broadcom had already pulled back from recent highs, with UBS arguing semiconductor valuations may now offer a more attractive entry point, but this is more valuation commentary than a fresh catalyst. Benzinga: Micron, Broadcom Just Got 25% Cheaper
• Negative Sentiment: One analyst reportedly downgraded Broadcom, suggesting not all views are uniformly bullish despite the Apple deal. Yahoo Finance: This Analyst Just Downgraded Broadcom Stock

Insider Activity

In other Broadcom news, Director Justine Page sold 1,602 shares of Broadcom stock in a transaction that occurred on Monday, June 29th. The shares were sold at an average price of $373.86, for a total value of $598,923.72. Following the completion of the sale, the director directly owned 17,426 shares of the company's stock, valued at approximately $6,514,884.36. The trade was a 8.42% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Harry L. You purchased 1,000 shares of the business's stock in a transaction on Thursday, June 11th. The stock was acquired at an average price of $373.57 per share, with a total value of $373,570.00. Following the completion of the acquisition, the director directly owned 38,466 shares in the company, valued at $14,369,743.62. The trade was a 2.67% increase in their position. The SEC filing for this purchase provides additional information. Insiders have sold a total of 17,754 shares of company stock worth $6,739,006 in the last three months. 1.90% of the stock is owned by insiders.

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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