Second Line Capital LLC Decreases Stock Holdings in Broadcom Inc. $AVGO

Key Points

• Second Line Capital LLC has reduced its stake in Broadcom Inc. by 70.4% in the first quarter, holding only 2,757 shares valued at approximately $462,000 after selling 6,556 shares.
• Several hedge funds, including Barnes Dennig Private Wealth Management LLC and Cheviot Value Management LLC, have acquired new positions in Broadcom, contributing to 76.43% of the company's stock being owned by institutional investors.
• Broadcom's CFO and CEO recently sold significant amounts of shares, with CFO Kirsten M. Spears selling 56,310 shares for $14.18 million and CEO Hock E. Tan selling 117,758 shares for $29.78 million, reflecting notable insider selling activity.

Second Line Capital LLC decreased its position in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 70.4% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 2,757 shares of the semiconductor manufacturer's stock after selling 6,556 shares during the quarter. Second Line Capital LLC's holdings in Broadcom were worth $462,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also recently bought and sold shares of AVGO. Brighton Jones LLC increased its holdings in Broadcom by 21.8% in the 4th quarter. Brighton Jones LLC now owns 29,683 shares of the semiconductor manufacturer's stock valued at $6,882,000 after purchasing an additional 5,322 shares in the last quarter. Revolve Wealth Partners LLC lifted its position in shares of Broadcom by 10.4% during the fourth quarter. Revolve Wealth Partners LLC now owns 7,997 shares of the semiconductor manufacturer's stock worth $1,854,000 after purchasing an additional 756 shares during the last quarter. Bank Pictet & Cie Europe AG lifted its position in shares of Broadcom by 16.4% during the fourth quarter. Bank Pictet & Cie Europe AG now owns 221,199 shares of the semiconductor manufacturer's stock worth $51,283,000 after purchasing an additional 31,225 shares during the last quarter. Renaissance Technologies LLC bought a new position in shares of Broadcom during the fourth quarter worth about $602,000. Finally, Westbourne Investments Inc. bought a new position in Broadcom in the fourth quarter worth about $211,000. Hedge funds and other institutional investors own 76.43% of the company's stock.

Insider Transactions at Broadcom

In other news, Director Henry Samueli sold 473,898 shares of the stock in a transaction dated Wednesday, June 25th. The shares were sold at an average price of $265.33, for a total value of $125,739,356.34. Following the completion of the sale, the director owned 38,188,575 shares in the company, valued at $10,132,574,604.75. This represents a 1.23% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Charlie B. Kawwas sold 10,000 shares of the firm's stock in a transaction dated Wednesday, June 11th. The stock was sold at an average price of $252.88, for a total transaction of $2,528,800.00. Following the sale, the insider owned 789,784 shares of the company's stock, valued at $199,720,577.92. This trade represents a 1.25% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 830,516 shares of company stock valued at $217,286,457. Corporate insiders own 2.00% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on the stock. Wall Street Zen lowered shares of Broadcom from a "buy" rating to a "hold" rating in a research note on Monday, August 25th. Redburn Atlantic started coverage on shares of Broadcom in a report on Wednesday, May 28th. They set a "buy" rating and a $301.00 target price for the company. HSBC raised shares of Broadcom from a "hold" rating to a "buy" rating and set a $400.00 price objective for the company in a research note on Tuesday, June 24th. Oppenheimer reissued an "outperform" rating and set a $325.00 target price (up previously from $305.00) on shares of Broadcom in a research note on Thursday, August 28th. Finally, Rosenblatt Securities lifted their target price on shares of Broadcom from $223.00 to $340.00 and gave the company a "buy" rating in a research note on Friday, June 6th. Three research analysts have rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Buy" and a consensus target price of $302.58.

Broadcom Stock Performance

NASDAQ AVGO traded up $0.85 during trading on Tuesday, reaching $298.24. The company's stock had a trading volume of 19,598,708 shares, compared to its average volume of 25,726,250. The firm has a 50 day moving average price of $288.61 and a 200 day moving average price of $235.11. Broadcom Inc. has a 12 month low of $134.90 and a 12 month high of $317.35. The company has a current ratio of 1.08, a quick ratio of 0.98 and a debt-to-equity ratio of 0.89. The firm has a market capitalization of $1.40 trillion, a price-to-earnings ratio of 111.70, a price-to-earnings-growth ratio of 2.11 and a beta of 1.16.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its quarterly earnings data on Thursday, June 5th. The semiconductor manufacturer reported $1.58 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.57 by $0.01. Broadcom had a net margin of 22.64% and a return on equity of 35.49%. The business had revenue of $15 billion during the quarter, compared to analysts' expectations of $14.98 billion. During the same period in the prior year, the company earned $10.96 EPS. The firm's quarterly revenue was up 20.2% compared to the same quarter last year. Broadcom has set its Q3 2025 guidance at EPS. As a group, equities analysts anticipate that Broadcom Inc. will post 5.38 EPS for the current fiscal year.

Broadcom Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, June 30th. Shareholders of record on Friday, June 20th were paid a $0.59 dividend. This represents a $2.36 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date of this dividend was Friday, June 20th. Broadcom's dividend payout ratio (DPR) is 88.39%.

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.