Broadcom Inc. $AVGO Shares Sold by Kesler Norman & Wride LLC

Key Points

• Kesler Norman & Wride LLC cut its Broadcom stake by 7% in the second quarter, selling 2,357 shares and retaining 31,188 shares valued at approximately $11.8 million. Institutional investors collectively own 76.43% of Broadcom.
• Broadcom reported quarterly EPS of $2.44, ahead of the $2.40 consensus, while revenue rose 47.9% year over year to $22.19 billion. The company also maintained a quarterly dividend of $0.65 per share, or $2.60 annualized.
• Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and an average price target of $491.97, but investors face risks from Broadcom’s premium valuation, financing needs for AI-chip expansion, and potential competition from Marvell’s Google-related custom silicon agreement.

Kesler Norman & Wride LLC reduced its stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 7.0% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 31,188 shares of the semiconductor manufacturer's stock after selling 2,357 shares during the quarter. Broadcom accounts for 1.9% of Kesler Norman & Wride LLC's investment portfolio, making the stock its 9th biggest holding. Kesler Norman & Wride LLC's holdings in Broadcom were worth $11,781,000 as of its most recent filing with the Securities and Exchange Commission.

Several other large investors have also modified their holdings of the stock. ROSS JOHNSON & Associates LLC increased its stake in Broadcom by 1,320.0% in the 4th quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer's stock valued at $25,000 after buying an additional 66 shares during the period. Networth Advisors LLC lifted its stake in shares of Broadcom by 546.2% in the 1st quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer's stock worth $26,000 after acquiring an additional 71 shares during the period. SWAN Capital LLC lifted its stake in shares of Broadcom by 261.9% in 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 during the period. Nvest Wealth Strategies Inc. purchased a new stake in shares of Broadcom in the fourth quarter valued at about $33,000. Finally, PayPay Securities Corp increased its stake in shares of Broadcom by 88.9% during the fourth quarter. PayPay Securities Corp now owns 119 shares of the semiconductor manufacturer's stock worth $41,000 after acquiring an additional 56 shares during the period. Hedge funds and other institutional investors own 76.43% of the company's stock.

Broadcom Trading Up 0.4%

Shares of AVGO opened at $364.03 on Friday. The company has a current ratio of 2.24, a quick ratio of 2.01 and a debt-to-equity ratio of 0.71. The firm's 50-day moving average is $388.84 and its two-hundred day moving average is $374.84. Broadcom Inc. has a twelve month low of $286.17 and a twelve month high of $495.00. The firm has a market capitalization of $1.73 trillion, a P/E ratio of 60.67, a PEG ratio of 0.69 and a beta of 1.45.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its quarterly 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 during the quarter, compared to the consensus estimate of $22.13 billion. During the same period last year, the firm earned $1.58 EPS. The company's revenue for the quarter was up 47.9% on a year-over-year basis. On average, research analysts predict that Broadcom Inc. will post 10.24 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

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

Broadcom News Roundup

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom is reportedly engaging lenders to secure up to $60 billion in financing for AI-chip projects. The funding could support large-scale production and expansion, although it may also increase leverage and financing risk. Broadcom engages with lenders to secure $60B for AI chip financing
• Positive Sentiment: ARK Invest reportedly purchased approximately $20 million of Broadcom shares during the weakness, providing a vote of confidence in the long-term AI infrastructure opportunity. AVGO Stock Recovers Premarket After Marvell-Linked Selloff
• Positive Sentiment: TD Cowen reiterated a Buy rating and a $500 price target. Broadcom’s latest results also showed strong underlying momentum, including nearly 48% year-over-year revenue growth and quarterly revenue slightly above consensus. Wall Street analyst updates Broadcom stock price target
• Neutral Sentiment: Broadcom still has a Google TPU and networking agreement extending through 2031. However, the company’s upcoming guidance—especially for fiscal 2027 AI semiconductor revenue—will be important in determining whether it can offset competitive concerns. Marvell Takes a Shot at Broadcom's Throne With Google Deal
• Negative Sentiment: Marvell Technology’s agreement to develop custom silicon connected to Google’s TPU ecosystem is the main pressure on AVGO. The deal covers inference accelerators and networking-related components, raising fears that Google could diversify away from Broadcom. Google also received warrants worth roughly $12.2 billion, potentially tied to as much as $120 billion of Marvell product purchases through 2033. Marvell Just Took Custom AI Chip Work at Google
• Negative Sentiment: Analyst commentary has highlighted Broadcom’s premium valuation, financing needs, and the reported second-quarter exit by Stanley Druckenmiller’s Duquesne Family Office. These factors reinforce concerns that strong AI growth may already be heavily reflected in the stock. Druckenmiller Sold Broadcom

Insider Transactions at Broadcom

In other news, Director Harry L. You bought 1,000 shares of the stock in a transaction on Thursday, June 11th. The shares were bought 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 owned 38,466 shares of the company's stock, valued at approximately $14,369,743.62. This trade represents a 2.67% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Mark David Brazeal sold 25,000 shares of the firm's stock in a transaction on Friday, July 10th. The shares were sold at an average price of $401.33, for a total value of $10,033,250.00. Following the completion of the transaction, the insider owned 194,989 shares of the company's stock, valued at approximately $78,254,935.37. This represents a 11.36% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 61,644 shares of company stock valued at $24,016,214. Company insiders own 1.90% of the company's stock.

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on the stock. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and set a $515.00 price target (up from $430.00) on shares of Broadcom in a report on Thursday, June 4th. Citigroup reiterated a "buy" rating on shares of Broadcom in a research report on Thursday, June 4th. Benchmark increased their target price on Broadcom from $485.00 to $545.00 and gave the stock a "buy" rating in a research note on Thursday, June 4th. UBS Group set a $485.00 price target on Broadcom and gave the company a "buy" rating in a report on Thursday, June 4th. Finally, Oppenheimer reaffirmed an "outperform" rating and set a $535.00 price objective (up from $450.00) on shares of Broadcom in a report on Thursday, June 4th. Twenty-nine analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $491.97.

Broadcom Profile

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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