Capital World Investors Sells 12,329,760 Shares of Broadcom Inc. $AVGO

Key Points

• Capital World Investors cut its Broadcom stake by 9.1% in the fourth quarter, selling 12.33 million shares. Even after the sale, Broadcom remained its largest holding, representing 5.8% of the portfolio.
• Broadcom reported better-than-expected quarterly results, with EPS of $2.44 versus estimates of $2.40 and revenue of $22.19 billion, up 47.9% year over year. The company also announced a quarterly dividend of $0.65 per share.
• Shares were trading lower on the day, but analyst sentiment remains constructive, with several firms reiterating buy ratings and an average price target around $490. Broadcom is also drawing attention for new AI infrastructure partnerships tied to Apollo and Blackstone.

Capital World Investors trimmed its holdings in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 9.1% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 123,257,172 shares of the semiconductor manufacturer's stock after selling 12,329,760 shares during the period. Broadcom comprises 5.8% of Capital World Investors' investment portfolio, making the stock its largest position. Capital World Investors owned 2.60% of Broadcom worth $42,660,697,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of the business. Baring Financial LLC lifted its position in Broadcom by 2.2% during the fourth quarter. Baring Financial LLC now owns 1,359 shares of the semiconductor manufacturer's stock valued at $470,000 after buying an additional 29 shares in the last quarter. Five Oceans Advisors lifted its position in Broadcom by 0.4% during the fourth quarter. Five Oceans Advisors now owns 8,191 shares of the semiconductor manufacturer's stock valued at $2,835,000 after buying an additional 29 shares in the last quarter. Planning Alternatives Ltd. ADV lifted its position in Broadcom by 1.4% during the third quarter. Planning Alternatives Ltd. ADV now owns 2,168 shares of the semiconductor manufacturer's stock valued at $715,000 after buying an additional 30 shares in the last quarter. Bell Investment Advisors Inc lifted its position in Broadcom by 1.9% during the third quarter. Bell Investment Advisors Inc now owns 1,638 shares of the semiconductor manufacturer's stock valued at $540,000 after buying an additional 30 shares in the last quarter. Finally, Black Diamond Financial LLC lifted its position in Broadcom by 3.2% during the third quarter. Black Diamond Financial LLC now owns 1,008 shares of the semiconductor manufacturer's stock valued at $333,000 after buying an additional 31 shares in the last quarter. 76.43% of the stock is owned by institutional investors and hedge funds.

Broadcom Trading Down 1.1%

NASDAQ AVGO opened at $392.16 on Wednesday. The company has a current ratio of 2.24, a quick ratio of 2.01 and a debt-to-equity ratio of 0.71. The company's fifty day simple moving average is $399.79 and its 200-day simple moving average is $362.70. The stock has a market cap of $1.86 trillion, a P/E ratio of 65.36, a PEG ratio of 0.72 and a beta of 1.41. Broadcom Inc. has a 52 week low of $241.40 and a 52 week high of $495.00.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its quarterly earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.40 by $0.04. The firm had revenue of $22.19 billion for the quarter, compared to analysts' expectations of $22.13 billion. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The firm's quarterly revenue was up 47.9% on a year-over-year basis. During the same period in the prior year, the company posted $1.58 earnings per share. Equities research analysts predict that Broadcom Inc. will post 9.96 EPS for the current fiscal year.

Broadcom Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 22nd will be issued a $0.65 dividend. The ex-dividend date of this dividend is Monday, June 22nd. This represents a $2.60 annualized dividend and a yield of 0.7%. Broadcom's dividend payout ratio is currently 43.33%.

Insider Transactions at Broadcom

In related news, insider Charlie B. Kawwas sold 10,000 shares of the company's stock in a transaction on Wednesday, April 8th. The shares were sold at an average price of $345.23, for a total value of $3,452,300.00. Following the sale, the insider directly owned 787,184 shares of the company's stock, valued at $271,759,532.32. This represents a 1.25% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Mark David Brazeal sold 50,488 shares of the company's stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $321.60, for a total transaction of $16,236,940.80. Following the completion of the sale, the insider directly owned 278,141 shares in the company, valued at $89,450,145.60. This represents a 15.36% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 324,282 shares of company stock valued at $106,425,249 over the last ninety days. 1.90% of the stock is currently owned by corporate insiders.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Apollo Global Management and Blackstone are backing a $35 billion AI infrastructure platform tied to Broadcom’s custom chips and networking gear, with Anthropic’s capacity expansion as the initial use case. This reinforces Broadcom’s role in the AI buildout and could support long-term revenue growth. Article Title
• Positive Sentiment: Broadcom also announced a new AI infrastructure partnership with Apollo and Blackstone, adding another sign that its semiconductor and networking solutions remain central to enterprise AI expansion. Article Title
• Positive Sentiment: JPMorgan reportedly raised its outlook on Broadcom after the latest earnings report, signaling that major analysts still see value in the stock despite the recent pullback. Article Title
• Positive Sentiment: More than 40 analysts remain bullish on Broadcom, and several recent articles highlight upgraded ratings and higher price targets, which can help stabilize investor sentiment. Article Title

Analyst Ratings Changes

A number of research analysts have weighed in on the stock. TD Cowen reaffirmed a "buy" rating and set a $500.00 price target on shares of Broadcom in a research report on Thursday, June 4th. Weiss Ratings upgraded shares of Broadcom from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Wednesday, May 27th. Erste Group Bank raised shares of Broadcom from a "hold" rating to a "buy" rating in a research report on Friday, June 5th. The Goldman Sachs Group reissued a "buy" rating and set a $525.00 target price on shares of Broadcom in a research report on Thursday, June 4th. Finally, Seaport Research Partners reissued a "neutral" rating on shares of Broadcom in a research report on Wednesday, April 8th. One analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average 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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