Founders Financial Securities LLC Sells 2,384 Shares of Broadcom Inc. $AVGO

Key Points

• Founders Financial Securities LLC trimmed its Broadcom stake by 9.5% in the first quarter, selling 2,384 shares and leaving it with 22,821 shares valued at about $7.06 million.
• Broadcom reported strong quarterly results, with EPS of $2.44 beating expectations and revenue of $22.19 billion topping estimates. Revenue rose 47.9% year over year, and AI semiconductor sales were highlighted as a major growth driver.
• Analysts remain broadly bullish on AVGO, with multiple firms raising price targets and the consensus rating sitting at “Moderate Buy” with a target price around $490.13. Broadcom also announced a quarterly dividend of $0.65 per share, equal to a 0.7% annualized yield.

Founders Financial Securities LLC reduced its holdings in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 9.5% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 22,821 shares of the semiconductor manufacturer's stock after selling 2,384 shares during the period. Founders Financial Securities LLC's holdings in Broadcom were worth $7,063,000 as of its most recent SEC filing.

Several other hedge funds have also recently made changes to their positions in AVGO. Norges Bank acquired a new stake in Broadcom during the fourth quarter worth approximately $24,252,196,000. Cardano Risk Management B.V. lifted its stake in Broadcom by 895.2% in the fourth quarter. Cardano Risk Management B.V. now owns 12,689,800 shares of the semiconductor manufacturer's stock valued at $4,391,940,000 after buying an additional 11,414,701 shares during the period. State Street Corp lifted its stake in Broadcom by 2.7% in the fourth quarter. State Street Corp now owns 190,084,351 shares of the semiconductor manufacturer's stock valued at $65,788,194,000 after buying an additional 5,040,801 shares during the period. Arrowstreet Capital Limited Partnership boosted its holdings in shares of Broadcom by 499.4% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 5,634,232 shares of the semiconductor manufacturer's stock worth $1,858,789,000 after buying an additional 4,694,313 shares in the last quarter. Finally, Vanguard Group Inc. boosted its holdings in shares of Broadcom by 0.8% during the 4th 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 in the last quarter. 76.43% of the stock is owned by institutional investors.

Broadcom Stock Performance

AVGO opened at $392.13 on Tuesday. 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 moving average price is $412.17 and its two-hundred day moving average price is $363.42. Broadcom Inc. has a 1-year low of $246.46 and a 1-year high of $495.00. The company has a market cap of $1.87 trillion, a price-to-earnings ratio of 65.36, a PEG ratio of 0.72 and a beta of 1.41.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its quarterly earnings data on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.40 by $0.04. The firm had revenue of $22.19 billion during 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 business's revenue was up 47.9% on a year-over-year basis. During the same period last year, the company earned $1.58 earnings per share. On average, analysts expect that Broadcom Inc. will post 10.24 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. Shareholders of record on Monday, June 22nd will be paid a dividend of $0.65 per share. The ex-dividend date is Monday, June 22nd. This represents a $2.60 dividend on an annualized basis and a yield of 0.7%. Broadcom's payout ratio is 43.33%.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on AVGO. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and issued a $515.00 price objective (up from $430.00) on shares of Broadcom in a research note on Thursday, June 4th. KeyCorp reissued an "overweight" rating and set a $575.00 target price (up from $500.00) on shares of Broadcom in a research note on Thursday, June 4th. Seaport Research Partners restated a "neutral" rating on shares of Broadcom in a report on Wednesday, April 8th. Morgan Stanley set a $502.00 price target on shares of Broadcom and gave the company an "overweight" rating in a research note on Thursday, June 4th. Finally, Benchmark upped their price objective on shares of Broadcom from $485.00 to $545.00 and gave the company a "buy" rating in a report on Thursday, June 4th. One research analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, Broadcom currently has a consensus rating of "Moderate Buy" and a consensus target price of $490.13.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Analysts and market commentators are pointing to Broadcom’s strong AI demand as the main reason to stay bullish. Recent coverage highlighted record semiconductor sales, AI chip and networking demand, and strong customer commitments as evidence that the company’s AI growth story remains intact. Broadcom's AI Push Boosts Semiconductor Sales: More Upside Ahead?
• Positive Sentiment: JPMorgan reportedly reiterated buy-the-dip optimism, citing Broadcom’s multi-year Google partnership, record quarterly revenue of $22.19 billion, and AI semiconductor sales of $10.8 billion, up 143% year over year. The note also pointed to expectations for another step-up in AI-chip growth next quarter. Broadcom's AI boom — Google deal and huge revenue growth spark buy-the-dip calls
• Positive Sentiment: Several pieces argue that the market is overreacting to a modest AI revenue guide and that the selloff has created an accumulation opportunity. They emphasize that Broadcom’s revenue, semiconductor growth, AI bookings, and backlog are all at record levels, which supports the longer-term investment case. The Grandest Castle Ever Floated (and the Stocks to Profit From It)
• Positive Sentiment: Broadcom is also attracting broader investor attention and continued analyst support, including a consensus “Moderate Buy” rating, which may help stabilize sentiment after the recent decline. Broadcom Inc. NASDAQ: AVGO Receives Consensus Recommendation of "Moderate Buy" from Analysts

Insider Activity

In related news, Director Harry L. You acquired 1,000 shares of the firm's stock in a transaction on Thursday, June 11th. The stock was purchased at an average cost of $373.57 per share, with a total value of $373,570.00. Following the acquisition, the director owned 38,466 shares of the company's stock, valued at approximately $14,369,743.62. This trade represents a 2.67% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, insider S. Ram Velaga sold 8,000 shares of the stock in a transaction that occurred on Friday, April 10th. The stock was sold at an average price of $370.52, for a total value of $2,964,160.00. Following the completion of the sale, the insider directly owned 57,932 shares of the company's stock, valued at approximately $21,464,964.64. This trade represents a 12.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 59,385 shares of company stock worth $21,301,057. Company insiders own 1.90% of the company's stock.

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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