Essex Financial Services Inc. Reduces Stock Position in Broadcom Inc. $AVGO

Key Points

• Essex Financial Services Inc. cut its Broadcom position by 5.8% in the fourth quarter, selling 1,174 shares and ending with 19,140 shares valued at about $6.62 million.
• Broadcom’s latest earnings were strong, with adjusted EPS of $2.44 and revenue of $22.19 billion, both slightly above Wall Street expectations. AI semiconductor revenue more than doubled to $10.8 billion, highlighting continued demand for Broadcom’s AI-related chips.
• Despite the solid results, the stock saw some pressure because the market expected even more from its AI outlook, though analysts still broadly remain positive with a consensus rating of Moderate Buy and an average target price of $458.23.

Essex Financial Services Inc. decreased its stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 5.8% during the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 19,140 shares of the semiconductor manufacturer's stock after selling 1,174 shares during the quarter. Essex Financial Services Inc.'s holdings in Broadcom were worth $6,624,000 as of its most recent SEC filing.

A number of other hedge funds have also recently modified their holdings of AVGO. Brighton Jones LLC boosted its stake in shares of Broadcom by 21.8% in the fourth quarter. Brighton Jones LLC now owns 29,683 shares of the semiconductor manufacturer's stock worth $6,882,000 after buying an additional 5,322 shares during the last quarter. Revolve Wealth Partners LLC boosted its stake in shares of Broadcom by 10.4% in the fourth quarter. Revolve Wealth Partners LLC now owns 7,997 shares of the semiconductor manufacturer's stock worth $1,854,000 after buying an additional 756 shares during the last quarter. United Bank boosted its stake in shares of Broadcom by 76.5% in the first quarter. United Bank now owns 2,339 shares of the semiconductor manufacturer's stock worth $392,000 after buying an additional 1,014 shares during the last quarter. Sivia Capital Partners LLC boosted its stake in shares of Broadcom by 10.1% in the second quarter. Sivia Capital Partners LLC now owns 12,693 shares of the semiconductor manufacturer's stock worth $3,499,000 after buying an additional 1,160 shares during the last quarter. Finally, Capital & Planning LLC boosted its stake in shares of Broadcom by 10.5% in the second quarter. Capital & Planning LLC now owns 3,983 shares of the semiconductor manufacturer's stock worth $1,098,000 after buying an additional 378 shares during the last quarter. Hedge funds and other institutional investors own 76.43% of the company's stock.

Trending Headlines about Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom beat fiscal Q2 expectations, reporting adjusted EPS of $2.44 versus the $2.40 consensus and revenue of $22.19 billion versus $22.13 billion expected. Broadcom Inc. Announces Second Quarter Fiscal Year 2026 Financial Results and Quarterly Dividend
• Positive Sentiment: AI semiconductor revenue more than doubled to $10.8 billion, showing Broadcom is benefiting from surging demand for custom AI accelerators and AI networking. Broadcom Revenue Climbs on AI Chip Demand
• Positive Sentiment: The company guided third-quarter revenue to about $29.4 billion, above the consensus estimate of roughly $28.3 billion, suggesting continued momentum in the AI build-out. Broadcom Inc. Announces Second Quarter Fiscal Year 2026 Financial Results and Quarterly Dividend
• Neutral Sentiment: Broadcom also announced its quarterly dividend of $0.65 per share, which supports the stock’s income appeal but is not likely the main driver of today’s move. Broadcom Inc. Announces Second Quarter Fiscal Year 2026 Financial Results and Quarterly Dividend
• Negative Sentiment: Despite strong AI growth, shares fell in after-hours trading because the outlook for AI semiconductor revenue and near-term expectations did not fully meet the market’s lofty bar after a big run-up in the stock. Broadcom revenue hits record on AI chip surge but outlook disappoints

Insiders Place Their Bets

In other Broadcom news, CFO Kirsten M. Spears sold 36,292 shares of the stock in a transaction that occurred 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 transaction, the chief financial officer owned 327,760 shares in the company, valued at approximately $105,407,616. This represents a 9.97% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider S. Ram Velaga sold 38,841 shares of the stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $321.60, for a total value of $12,491,265.60. Following the transaction, the insider owned 96,147 shares in the company, valued at $30,920,875.20. This represents a 28.77% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 324,282 shares of company stock worth $106,425,249. Company insiders own 1.90% of the company's stock.

Wall Street Analyst Weigh In

A number of analysts have recently commented on AVGO shares. Susquehanna restated a "positive" rating and issued a $490.00 target price (up from $450.00) on shares of Broadcom in a research note on Thursday, May 28th. Truist Financial upped their target price on Broadcom from $510.00 to $545.00 and gave the stock a "buy" rating in a research note on Thursday, March 5th. Wells Fargo & Company restated an "overweight" rating and issued a $545.00 target price (up from $430.00) on shares of Broadcom in a research note on Thursday, May 14th. Morgan Stanley upped their target price on Broadcom from $470.00 to $485.00 and gave the stock an "overweight" rating in a research note on Monday. Finally, Wall Street Zen downgraded Broadcom from a "buy" rating to a "hold" rating in a research note on Saturday, May 30th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating and four have given a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $458.23.

Broadcom Stock Performance

Shares of AVGO stock opened at $479.23 on Thursday. The company has a market capitalization of $2.27 trillion, a P/E ratio of 93.60, a P/E/G ratio of 0.99 and a beta of 1.41. The business's 50 day moving average is $392.87 and its two-hundred day moving average is $361.19. The company has a current ratio of 1.90, a quick ratio of 1.73 and a debt-to-equity ratio of 0.80. Broadcom Inc. has a 12-month low of $241.11 and a 12-month 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 analysts' consensus estimates of $2.40 by $0.04. The company had revenue of $22.19 billion for the quarter, compared to the consensus estimate of $22.13 billion. Broadcom had a return on equity of 38.61% and a net margin of 36.57%.Broadcom's revenue for the quarter was up 47.9% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.58 earnings per share. Analysts expect that Broadcom Inc. will post 9.91 EPS for the current fiscal year.

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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