Broadcom Inc. $AVGO Stake Lessened by BIP Wealth LLC

Key Points

• BIP Wealth LLC cut its Broadcom stake by 24.2% in the first quarter, selling 3,097 shares and leaving it with 9,676 shares valued at about $2.995 million.
• Broadcom continues to draw mixed but mostly positive analyst attention: recent notes included price-target hikes from Benchmark, UBS, RBC, and Wells Fargo, while Zacks downgraded the stock to a hold. The consensus rating remains Moderate Buy with an average price target of $493.24.
• Despite recent stock pressure, Broadcom reported strong quarterly results, beating EPS expectations and posting revenue growth of 47.9% year over year. The company also paid a quarterly dividend of $0.65 per share, implying an annualized yield of about 0.7%.

BIP Wealth LLC decreased its position in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 24.2% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 9,676 shares of the semiconductor manufacturer's stock after selling 3,097 shares during the period. BIP Wealth LLC's holdings in Broadcom were worth $2,995,000 at the end of the most recent quarter.

A number of other institutional investors have also recently added to or reduced their stakes in the company. Brown Brothers Harriman & Co. grew its stake in shares of Broadcom by 10.7% during the third quarter. Brown Brothers Harriman & Co. now owns 77,411 shares of the semiconductor manufacturer's stock worth $25,539,000 after purchasing an additional 7,499 shares during the period. Sovran Advisors LLC lifted its stake in Broadcom by 121.3% in the fourth quarter. Sovran Advisors LLC now owns 30,631 shares of the semiconductor manufacturer's stock valued at $10,507,000 after buying an additional 16,789 shares during the period. Thurston Springer Miller Herd & Titak Inc. lifted its stake in Broadcom by 406.1% in the fourth quarter. Thurston Springer Miller Herd & Titak Inc. now owns 11,994 shares of the semiconductor manufacturer's stock valued at $4,151,000 after buying an additional 9,624 shares during the period. Aspiriant LLC boosted its holdings in Broadcom by 18.5% during the fourth quarter. Aspiriant LLC now owns 12,016 shares of the semiconductor manufacturer's stock worth $4,158,000 after buying an additional 1,872 shares during the last quarter. Finally, World Investment Advisors boosted its holdings in Broadcom by 16.1% during the fourth quarter. World Investment Advisors now owns 177,710 shares of the semiconductor manufacturer's stock worth $61,505,000 after buying an additional 24,703 shares during the last quarter. 76.43% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on AVGO. Zacks Research cut Broadcom from a "strong-buy" rating to a "hold" rating in a research note on Thursday, May 21st. Benchmark lifted their price objective on shares of 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 objective on shares of Broadcom and gave the company a "buy" rating in a report on Thursday, June 4th. Royal Bank Of Canada upped their target price on shares of Broadcom from $360.00 to $400.00 and gave the company a "sector perform" rating in a research note on Thursday, June 4th. Finally, Wells Fargo & Company reiterated an "overweight" rating and issued a $545.00 target price (up from $430.00) on shares of Broadcom in a report on Thursday, May 14th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $493.24.

Insiders Place Their Bets

In other Broadcom news, 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 transaction, the insider directly owned 57,932 shares in the company, valued at $21,464,964.64. This trade represents a 12.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Mark David Brazeal sold 4,825 shares of the business's stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $394.91, for a total value of $1,905,440.75. Following the transaction, the insider directly owned 269,989 shares in the company, valued at $106,621,355.99. This trade represents a 1.76% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 36,014 shares of company stock valued at $13,174,907 in the last quarter. 1.90% of the stock is currently owned by corporate insiders.

Broadcom News Roundup

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom extended its chip and wireless component partnership with Apple through 2031, including custom ASIC silicon for Apple’s AI server chips. Investors view the deal as a major win because it locks in a durable revenue stream and improves visibility into Broadcom’s future cash flow. Apple and Broadcom Forge a Decade-Long Silicon Fortress
• Positive Sentiment: Several analysts and commentators reiterated a bullish view on Broadcom, arguing the Apple extension strengthens its “AI infrastructure” story and makes the stock look more attractive after the recent pullback. Bull v. Bear: AVGO New Value as Sell-Off Steepens
• Neutral Sentiment: Broadcom also benefited from a broader rebound in chip names, with investors reacting to renewed enthusiasm for AI and semiconductor spending, even as some of that move looked tied to sector rotation rather than company-specific news. Allegro MicroSystems and Penguin Solutions Shares Skyrocket, What You Need To Know
• Neutral Sentiment: A recent hold rating reaffirmation from Erste Group Bank did not materially change the story, but it may temper near-term upside if investors were expecting a fresh bullish catalyst. Benzinga report on Erste Group Bank reaffirmation
• Negative Sentiment: Broader semiconductor weakness and a global tech sell-off, tied in part to a margin/liquidity shock in Asia, have weighed on AVGO and other chip stocks despite no clear deterioration in fundamentals. The AI Chip Sell-Off Looks Scary, But the Real Story May Be Liquidity
• Negative Sentiment: AVGO remains well below its recent highs and is being described as in a bear market, reflecting ongoing valuation pressure and investor caution after the sector pullback. Bull v. Bear: AVGO New Value as Sell-Off Steepens

Broadcom Stock Performance

Shares of AVGO stock opened at $370.78 on Wednesday. Broadcom Inc. has a 12 month low of $269.58 and a 12 month high of $495.00. The company's fifty day simple moving average is $405.96 and its 200-day simple moving average is $363.03. The firm has a market cap of $1.76 trillion, a PE ratio of 61.80, a P/E/G ratio of 0.66 and a beta of 1.45. The company has a quick ratio of 2.01, a current ratio of 2.24 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 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 business had revenue of $22.19 billion during the quarter, compared to the consensus estimate of $22.13 billion. During the same quarter last year, the firm earned $1.58 earnings per share. The firm's revenue for the quarter was up 47.9% compared to the same quarter last year. Equities research analysts expect that Broadcom Inc. will post 10.24 EPS for the current fiscal year.

Broadcom Dividend Announcement

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

Broadcom Company 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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