Broadcom Inc. $AVGO Stock Position Trimmed by Heritage Investors Management Corp

Key Points

• Heritage Investors Management Corp slightly trimmed its Broadcom stake in the first quarter, selling 1,696 shares and ending with 509,263 shares valued at about $157.6 million. Broadcom remains its second-largest holding and makes up 4.8% of the portfolio.
• Broadcom reported a strong quarterly beat, with EPS of $2.44 versus $2.40 expected and revenue of $22.19 billion versus $22.13 billion estimated. Revenue jumped 47.9% year over year, and analysts now expect full-year EPS of 10.24.
• The company also paid a quarterly dividend of $0.65 per share, or $2.60 annualized, for a 0.7% yield. Meanwhile, analysts remain broadly positive, with a consensus rating of Moderate Buy and an average price target of $493.24.

Heritage Investors Management Corp lessened its holdings in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 0.3% in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 509,263 shares of the semiconductor manufacturer's stock after selling 1,696 shares during the quarter. Broadcom accounts for 4.8% of Heritage Investors Management Corp's investment portfolio, making the stock its 2nd largest position. Heritage Investors Management Corp's holdings in Broadcom were worth $157,622,000 as of its most recent SEC filing.

Other large investors have also recently made changes to their positions in the company. Vanguard Group Inc. increased its holdings in Broadcom by 0.8% during the fourth quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer's stock worth $167,064,997,000 after buying an additional 3,919,715 shares during the last quarter. State Street Corp increased its stake in shares of Broadcom by 2.7% during the 4th quarter. State Street Corp now owns 190,084,351 shares of the semiconductor manufacturer's stock worth $65,788,194,000 after purchasing an additional 5,040,801 shares during the last quarter. Geode Capital Management LLC raised its holdings in shares of Broadcom by 1.4% in the 4th quarter. Geode Capital Management LLC now owns 111,277,280 shares of the semiconductor manufacturer's stock worth $38,396,634,000 after purchasing an additional 1,548,699 shares during the period. Price T Rowe Associates Inc. MD lifted its stake in Broadcom by 3.0% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 85,546,083 shares of the semiconductor manufacturer's stock valued at $29,607,500,000 after purchasing an additional 2,491,644 shares during the last quarter. Finally, Norges Bank bought a new position in Broadcom during the fourth quarter valued at $24,252,196,000. 76.43% of the stock is owned by hedge funds and other institutional investors.

Broadcom Price Performance

Shares of NASDAQ:AVGO opened at $373.90 on Tuesday. The company's fifty day moving average price is $407.92 and its 200-day moving average price is $362.49. The company has a debt-to-equity ratio of 0.71, a current ratio of 2.24 and a quick ratio of 2.01. The firm has a market capitalization of $1.78 trillion, a price-to-earnings ratio of 62.32, a PEG ratio of 0.63 and a beta of 1.45. Broadcom Inc. has a one year low of $269.58 and a one year high of $495.00.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its quarterly earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.40 by $0.04. The firm had revenue of $22.19 billion during the quarter, compared to analyst estimates of $22.13 billion. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.The company's revenue was up 47.9% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.58 earnings per share. On average, equities research analysts anticipate that Broadcom Inc. will post 10.24 earnings per share for the current fiscal year.

Broadcom Announces Dividend

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

Insider Activity

In related news, insider Mark David Brazeal sold 4,825 shares of the stock in a transaction dated Wednesday, June 17th. The stock was sold at an average price of $394.91, for a total transaction of $1,905,440.75. Following the completion of the sale, the insider directly owned 269,989 shares in the company, valued at $106,621,355.99. This represents a 1.76% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Justine Page sold 2,018 shares of the firm's stock in a transaction that occurred on Wednesday, April 8th. The stock was sold at an average price of $353.00, for a total value of $712,354.00. Following the transaction, the director owned 18,164 shares in the company, valued at approximately $6,411,892. The trade was a 10.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 60,987 shares of company stock valued at $21,899,980. Company insiders own 1.90% of the company's stock.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom said it expanded its partnership with Apple through 2031 to develop and supply custom chips, including custom ASIC silicon. That signals durable revenue visibility and reinforces Broadcom’s role in Apple’s AI and edge-computing roadmap. Reuters: Broadcom, Apple extend chip partnership through 2031
• Positive Sentiment: Several market reports said AVGO rose after the Apple agreement, helping boost the broader semiconductor complex and signaling that investors view the deal as a meaningful near-term catalyst. Yahoo Finance: Allegro MicroSystems and Penguin Solutions Shares Skyrocket
• Positive Sentiment: Analysts and commentary continue to frame Broadcom as a core AI infrastructure name, with some arguing its custom AI silicon and networking exposure justify a premium valuation and support higher earnings estimates. Seeking Alpha: Broadcom's AI Infrastructure Model Justifies Its Premium Valuation
• Neutral Sentiment: Broader sector momentum is helping AVGO, as chip and memory stocks have rallied on improving sentiment across the AI trade and upbeat Wall Street notes.
• Neutral Sentiment: Some articles highlighted that Broadcom has fallen over the past month and that near-term guidance has disappointed, which may temper enthusiasm despite the Apple and AI positives. Zacks: Broadcom Drops 9% in a Month: Buy, Sell or Hold the AVGO Stock?
• Negative Sentiment: One bearish overhang is concern that Broadcom’s largest AI customer may shift business to MediaTek, raising questions about how concentrated or defensible some of AVGO’s AI custom-chip revenue could be. MSN: Broadcom’s largest AI customer is fleeing to MediaTek

Wall Street Analyst Weigh In

A number of research analysts have recently commented on AVGO shares. Mizuho upped their price target on Broadcom from $480.00 to $530.00 and gave the company an "outperform" rating in a research report on Thursday, June 4th. Benchmark lifted their price objective on shares of Broadcom from $485.00 to $545.00 and gave the company a "buy" rating in a research note on Thursday, June 4th. Oppenheimer reissued an "outperform" rating and set a $535.00 target price (up from $450.00) on shares of Broadcom in a report on Thursday, June 4th. Evercore reiterated an "outperform" rating and set a $582.00 price objective on shares of Broadcom in a research note on Tuesday, May 19th. Finally, Dbs Bank raised shares of Broadcom to a "moderate buy" rating in a research note on Thursday, June 18th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $493.24.

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.

Want to see what other hedge funds are holding AVGO? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Broadcom Inc. (NASDAQ:AVGO - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.