Broadcom Inc. $AVGO Shares Sold by Mcdonald Partners LLC

Key Points

• Mcdonald Partners LLC reduced its Broadcom stake by 9.8% in the fourth quarter, selling 1,619 shares and leaving it with 14,937 shares valued at about $5.17 million.
• Insider selling has been active, with executives Charlie B. Kawwas and S. Ram Velaga recently selling shares; insiders have sold 324,282 shares worth roughly $106.4 million over the last 90 days.
• Broadcom recently reported better-than-expected quarterly results, posting EPS of $2.05 on revenue of $19.31 billion, while analysts maintain a Moderate Buy consensus with a $435.30 target price.

Mcdonald Partners LLC trimmed its holdings in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 9.8% during the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 14,937 shares of the semiconductor manufacturer's stock after selling 1,619 shares during the period. Broadcom accounts for approximately 1.6% of Mcdonald Partners LLC's holdings, making the stock its 15th largest holding. Mcdonald Partners LLC's holdings in Broadcom were worth $5,170,000 as of its most recent SEC filing.

A number of other hedge funds have also recently added to or reduced their stakes in AVGO. Providence First Trust Co lifted its stake in shares of Broadcom by 1,099.3% in the 3rd quarter. Providence First Trust Co now owns 8,923 shares of the semiconductor manufacturer's stock valued at $2,944,000 after purchasing an additional 8,179 shares in the last quarter. Whittier Trust Co. of Nevada Inc. increased its holdings in Broadcom by 3.4% during the 3rd quarter. Whittier Trust Co. of Nevada Inc. now owns 323,587 shares of the semiconductor manufacturer's stock worth $109,492,000 after purchasing an additional 10,786 shares during the last quarter. Lmcg Investments LLC increased its holdings in Broadcom by 9.4% during the 3rd quarter. Lmcg Investments LLC now owns 38,961 shares of the semiconductor manufacturer's stock worth $12,854,000 after purchasing an additional 3,357 shares during the last quarter. Wright Investors Service Inc. increased its holdings in Broadcom by 5.4% during the 3rd quarter. Wright Investors Service Inc. now owns 42,159 shares of the semiconductor manufacturer's stock worth $13,909,000 after purchasing an additional 2,178 shares during the last quarter. Finally, Brown Brothers Harriman & Co. grew its position in shares of Broadcom by 10.7% in the 3rd quarter. Brown Brothers Harriman & Co. now owns 77,411 shares of the semiconductor manufacturer's stock worth $25,539,000 after acquiring an additional 7,499 shares in the last quarter. 76.43% of the stock is owned by institutional investors and hedge funds.

Insider Activity

In related news, insider Charlie B. Kawwas sold 10,000 shares of the stock in a transaction that occurred on Wednesday, April 8th. The stock was sold at an average price of $345.23, for a total transaction of $3,452,300.00. Following the completion of the sale, the insider owned 787,184 shares in the company, valued at $271,759,532.32. This represents a 1.25% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider S. Ram Velaga sold 8,000 shares of the firm's stock in a transaction that occurred on Friday, April 10th. The stock was sold at an average price of $370.52, for a total value of $2,964,160.00. Following the completion of the sale, the insider owned 57,932 shares of the company's stock, valued at $21,464,964.64. This represents a 12.13% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 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

AVGO opened at $430.00 on Monday. The company has a market cap of $2.04 trillion, a PE ratio of 83.98, a price-to-earnings-growth ratio of 0.89 and a beta of 1.43. The stock has a 50-day moving average of $352.89 and a 200-day moving average of $351.28. Broadcom Inc. has a 52-week low of $206.52 and a 52-week high of $437.68. The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.73 and a current ratio of 1.90.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its quarterly earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.03 by $0.02. Broadcom had a return on equity of 38.61% and a net margin of 36.57%.The company had revenue of $19.31 billion during the quarter, compared to the consensus estimate of $19.10 billion. During the same quarter in the prior year, the company posted $1.60 EPS. The firm's revenue was up 29.5% on a year-over-year basis. As a group, equities research analysts forecast that Broadcom Inc. will post 9.95 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Investors 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 annualized dividend and a yield of 0.6%. Broadcom's dividend payout ratio is presently 50.78%.

Key Headlines Impacting Broadcom

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

Wall Street Analyst Weigh In

Several brokerages have recently commented on AVGO. DA Davidson upgraded Broadcom to a "hold" rating in a research report on Friday, February 13th. Zacks Research upgraded Broadcom from a "hold" rating to a "strong-buy" rating in a research report on Thursday, April 2nd. Truist Financial boosted their price target on Broadcom from $510.00 to $545.00 and gave the stock a "buy" rating in a research report on Thursday, March 5th. Morgan Stanley upped their price objective on Broadcom from $462.00 to $470.00 and gave the company an "overweight" rating in a report on Friday, March 6th. Finally, Rosenblatt Securities restated a "buy" rating and issued a $500.00 price objective on shares of Broadcom in a report on Tuesday, April 7th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average 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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