Broadcom Inc. $AVGO Stake Reduced by Lederer & Associates Investment Counsel CA

Key Points

• Lederer & Associates Investment Counsel CA reduced its stake in Broadcom Inc. by 9.6% during the second quarter, resulting in 12,432 shares owned, valued at approximately $3.4 million.
• CEO Hock E. Tan sold 148,154 shares of Broadcom stock, decreasing his ownership by 15.21%, while CFO Kirsten M. Spears also reduced her stake by 2.34%.
• Broadcom's stock price targets have increased, with Bank of America recently raising its target from $300 to $400, resulting in a consensus target of approximately $356.48 among analysts.

Lederer & Associates Investment Counsel CA lowered its holdings in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 9.6% during the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 12,432 shares of the semiconductor manufacturer's stock after selling 1,325 shares during the quarter. Broadcom accounts for 2.3% of Lederer & Associates Investment Counsel CA's holdings, making the stock its 9th largest holding. Lederer & Associates Investment Counsel CA's holdings in Broadcom were worth $3,427,000 as of its most recent SEC filing.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Barnes Dennig Private Wealth Management LLC purchased a new stake in Broadcom in the first quarter valued at $25,000. Cheviot Value Management LLC acquired a new stake in shares of Broadcom in the first quarter valued at $25,000. Inlight Wealth Management LLC acquired a new stake in shares of Broadcom in the first quarter valued at $26,000. Sawyer & Company Inc grew its stake in shares of Broadcom by 62.1% in the second quarter. Sawyer & Company Inc now owns 94 shares of the semiconductor manufacturer's stock valued at $26,000 after buying an additional 36 shares in the last quarter. Finally, Wood Tarver Financial Group LLC grew its stake in shares of Broadcom by 342.5% in the first quarter. Wood Tarver Financial Group LLC now owns 177 shares of the semiconductor manufacturer's stock valued at $30,000 after buying an additional 137 shares in the last quarter. Hedge funds and other institutional investors own 76.43% of the company's stock.

Insider Activity

In other news, CEO Hock E. Tan sold 148,154 shares of the company's stock in a transaction dated Wednesday, September 10th. The shares were sold at an average price of $336.67, for a total value of $49,879,007.18. Following the completion of the sale, the chief executive officer directly owned 825,998 shares of the company's stock, valued at approximately $278,088,746.66. This represents a 15.21% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Kirsten M. Spears sold 7,498 shares of the stock in a transaction that occurred on Wednesday, September 17th. The stock was sold at an average price of $347.66, for a total value of $2,606,754.68. Following the sale, the chief financial officer directly owned 313,330 shares of the company's stock, valued at $108,932,307.80. The trade was a 2.34% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have acquired 3,550 shares of company stock worth $1,227,869 and have sold 197,274 shares worth $67,044,814. 2.00% of the stock is currently owned by company insiders.

Broadcom Trading Up 0.1%

NASDAQ:AVGO opened at $339.31 on Thursday. The stock has a 50-day simple moving average of $311.64 and a 200-day simple moving average of $250.44. The stock has a market cap of $1.60 trillion, a P/E ratio of 86.56, a P/E/G ratio of 1.87 and a beta of 1.16. Broadcom Inc. has a 1 year low of $138.10 and a 1 year high of $374.23. The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.37 and a current ratio of 1.50.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its earnings results on Thursday, September 4th. The semiconductor manufacturer reported $1.69 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.66 by $0.03. The firm had revenue of $15.95 billion during the quarter, compared to analysts' expectations of $15.82 billion. Broadcom had a return on equity of 36.60% and a net margin of 31.59%.The business's revenue was up 22.0% on a year-over-year basis. During the same period in the prior year, the firm earned $1.24 EPS. Broadcom has set its Q4 2025 guidance at EPS. As a group, analysts anticipate that Broadcom Inc. will post 5.38 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 30th. Investors of record on Monday, September 22nd will be given a $0.59 dividend. The ex-dividend date is Monday, September 22nd. This represents a $2.36 annualized dividend and a yield of 0.7%. Broadcom's dividend payout ratio is 60.20%.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on AVGO. UBS Group lifted their price objective on Broadcom from $290.00 to $345.00 and gave the company a "buy" rating in a research note on Monday, August 25th. Arete Research raised Broadcom to a "strong-buy" rating in a research report on Monday, July 28th. Evercore ISI restated an "outperform" rating and set a $342.00 target price (up from $304.00) on shares of Broadcom in a research note on Thursday, September 4th. Bank of America lifted their price target on shares of Broadcom from $300.00 to $400.00 and gave the stock a "buy" rating in a research note on Friday, September 5th. Finally, Susquehanna increased their price objective on shares of Broadcom from $280.00 to $300.00 and gave the company a "positive" rating in a research report on Friday, June 6th. Three investment analysts have rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and one has given a Hold rating to the company. According to MarketBeat, Broadcom presently has a consensus rating of "Buy" and a consensus price target of $356.48.

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.

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