Broadcom Inc. $AVGO Stock Position Cut by Mutual of America Capital Management LLC

Key Points

• Mutual of America Capital Management trimmed its Broadcom stake slightly in the fourth quarter, selling 1,835 shares and leaving it with 530,517 shares valued at about $183.6 million.
• Broadcom insiders were active sellers, with both a senior executive and the CFO disposing of shares on March 17; insiders sold 324,282 shares worth roughly $106.4 million over the last quarter.
• Broadcom reported strong quarterly results, beating EPS and revenue estimates with $2.44 per share on $22.19 billion in revenue, while also declaring a quarterly dividend of $0.65 per share.

Mutual of America Capital Management LLC reduced its stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 0.3% during the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 530,517 shares of the semiconductor manufacturer's stock after selling 1,835 shares during the quarter. Broadcom makes up about 1.9% of Mutual of America Capital Management LLC's holdings, making the stock its 6th biggest holding. Mutual of America Capital Management LLC's holdings in Broadcom were worth $183,612,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds have also added to or reduced their stakes in AVGO. Brown Brothers Harriman & Co. boosted its holdings in Broadcom by 10.7% in 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 last quarter. Dana Investment Advisors Inc. boosted its holdings in Broadcom by 2.6% in the third quarter. Dana Investment Advisors Inc. now owns 173,759 shares of the semiconductor manufacturer's stock worth $57,325,000 after purchasing an additional 4,442 shares during the last quarter. Guinness Atkinson Asset Management Inc boosted its stake in shares of Broadcom by 248.2% during the 3rd quarter. Guinness Atkinson Asset Management Inc now owns 26,238 shares of the semiconductor manufacturer's stock worth $8,603,000 after acquiring an additional 18,703 shares during the last quarter. Sovran Advisors LLC boosted its stake in shares of Broadcom by 121.3% during the 4th quarter. Sovran Advisors LLC now owns 30,631 shares of the semiconductor manufacturer's stock worth $10,507,000 after acquiring an additional 16,789 shares during the last quarter. Finally, Thurston Springer Miller Herd & Titak Inc. boosted its stake in shares of Broadcom by 406.1% during the 4th quarter. Thurston Springer Miller Herd & Titak Inc. now owns 11,994 shares of the semiconductor manufacturer's stock worth $4,151,000 after acquiring an additional 9,624 shares during the last quarter. 76.43% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling at Broadcom

In other Broadcom news, insider Mark David Brazeal sold 50,488 shares of Broadcom stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $321.60, for a total value of $16,236,940.80. Following the completion of the transaction, the insider directly owned 278,141 shares of the company's stock, valued at $89,450,145.60. This trade represents a 15.36% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CFO Kirsten M. Spears sold 36,292 shares of Broadcom stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $321.60, for a total transaction of $11,671,507.20. Following the completion of the transaction, the chief financial officer directly owned 327,760 shares of the company's stock, valued at $105,407,616. The trade was a 9.97% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 324,282 shares of company stock valued at $106,425,249. Corporate insiders own 1.90% of the company's stock.

Broadcom Stock Performance

Shares of NASDAQ:AVGO opened at $385.73 on Friday. Broadcom Inc. has a 52 week low of $241.11 and a 52 week high of $495.00. The stock has a market capitalization of $1.83 trillion, a P/E ratio of 64.29, a PEG ratio of 0.86 and a beta of 1.41. The firm has a fifty day simple moving average of $396.22 and a two-hundred day simple moving average of $361.90. The company has a quick ratio of 1.73, a current ratio of 2.24 and a debt-to-equity ratio of 0.71.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its quarterly earnings data on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, topping 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 analysts' expectations of $22.13 billion. During the same period last year, the company posted $1.58 EPS. The business's revenue was up 47.9% on a year-over-year basis. On average, analysts expect that Broadcom Inc. will post 9.97 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

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

Key Stories Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom posted record quarterly revenue, beat earnings estimates, and said AI semiconductor demand remains strong, supporting the long-term growth story. Broadcom Q2 Earnings Surpasses Estimates, Revenues Surge Y/Y
• Positive Sentiment: Several analysts remain bullish and raised price targets after the pullback, arguing the market is overreacting to expectations rather than fundamentals. Goldman Sachs urges investors to buy Broadcom dip with still AI revenue trajectory intact
• Positive Sentiment: Management still expects AI revenue to reach $56 billion in fiscal 2026 and more than $100 billion in fiscal 2027, keeping the longer-term AI thesis intact. AVGO Shares Drop 13% Post Q2 Results: Buy, Sell or Hold on the Dip?
• Neutral Sentiment: Broadcom also declared a quarterly dividend, which is supportive for income investors but not a major near-term stock driver.
• Negative Sentiment: The stock is under pressure because the AI outlook, while strong, was not upgraded enough to satisfy investors who had priced in an even bigger upside surprise. Broadcom's sales and AI chip forecast comes in below expectations, shares tumble
• Negative Sentiment: The disappointment has spilled over into the semiconductor sector, pressuring peers such as AMD, Intel, Micron, and Marvell as investors reassess AI trade valuations. Intel, AMD stocks slide again in aftermath of Broadcom's weak outlook

Wall Street Analyst Weigh In

AVGO has been the topic of several analyst reports. Morgan Stanley set a $502.00 price target on shares of Broadcom and gave the stock an "overweight" rating in a research note on Thursday. Zacks Research cut shares of Broadcom from a "strong-buy" rating to a "hold" rating in a research note on Thursday, May 21st. Jefferies Financial Group set a $550.00 price objective on shares of Broadcom and gave the company a "buy" rating in a research report on Thursday. Royal Bank Of Canada raised their price objective on shares of Broadcom from $360.00 to $400.00 and gave the company a "sector perform" rating in a research report on Thursday. Finally, Oppenheimer restated an "outperform" rating and set a $535.00 price objective (up from $450.00) on shares of Broadcom in a research report on Thursday. One analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $490.13.

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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