Fred Alger Management LLC Trims Stock Position in Broadcom Inc. $AVGO

Key Points

• Fred Alger Management LLC reduced its stake in Broadcom Inc. by 13.9%, selling 397,999 shares and retaining approximately 2.3% of its investment portfolio in the company.
• Broadcom reported earnings of $1.69 per share, exceeding estimates, and a revenue of $15.95 billion, marking a strong 22% year-over-year growth.
• The company declared a quarterly dividend of $0.59 per share, translating to an annualized yield of 0.7% with a payout ratio of 60.20%.

Fred Alger Management LLC lessened its stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 13.9% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 2,457,742 shares of the semiconductor manufacturer's stock after selling 397,999 shares during the period. Broadcom accounts for 2.3% of Fred Alger Management LLC's portfolio, making the stock its 9th largest holding. Fred Alger Management LLC owned 0.05% of Broadcom worth $411,500,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Barnes Dennig Private Wealth Management LLC acquired a new stake in Broadcom in the 1st quarter valued at approximately $25,000. Cheviot Value Management LLC acquired a new stake in shares of Broadcom during the 1st quarter worth approximately $25,000. Inlight Wealth Management LLC acquired a new stake in shares of Broadcom during the 1st quarter worth approximately $26,000. Sunbeam Capital Management LLC acquired a new stake in shares of Broadcom during the 4th quarter worth approximately $28,000. Finally, Vermillion Wealth Management Inc. acquired a new stake in shares of Broadcom during the 4th quarter worth approximately $30,000. Institutional investors and hedge funds own 76.43% of the company's stock.

Insiders Place Their Bets

In related news, Director Justine Page sold 800 shares of the business's stock in a transaction on Thursday, August 14th. The stock was sold at an average price of $307.46, for a total value of $245,968.00. Following the completion of the sale, the director directly owned 23,782 shares in the company, valued at $7,312,013.72. The trade was a 3.25% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO Hock E. Tan sold 40,000 shares of the company's stock in a transaction on Thursday, June 26th. The shares were sold at an average price of $268.29, for a total value of $10,731,600.00. Following the sale, the chief executive officer owned 482,836 shares of the company's stock, valued at approximately $129,540,070.44. The trade was a 7.65% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 820,516 shares of company stock worth $214,757,657 over the last three months. 2.00% of the stock is currently owned by corporate insiders.

Broadcom Stock Performance

Shares of NASDAQ AVGO traded up $32.90 during midday trading on Wednesday, hitting $369.57. 50,629,632 shares of the company's stock were exchanged, compared to its average volume of 26,234,229. The company has a quick ratio of 1.37, a current ratio of 1.50 and a debt-to-equity ratio of 0.86. Broadcom Inc. has a 12 month low of $138.10 and a 12 month high of $372.97. The company's 50 day moving average price is $294.92 and its 200 day moving average price is $238.95. The firm has a market capitalization of $1.74 trillion, a PE ratio of 94.28, a price-to-earnings-growth ratio of 1.89 and a beta of 1.16.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its earnings results on Thursday, September 4th. The semiconductor manufacturer reported $1.69 EPS for the quarter, topping the consensus estimate of $1.66 by $0.03. Broadcom had a return on equity of 36.60% and a net margin of 31.59%.The company had revenue of $15.95 billion during the quarter, compared to the consensus estimate of $15.82 billion. During the same period in the previous year, the company posted $1.24 EPS. The firm's revenue for the quarter was up 22.0% compared to the same quarter last year. Broadcom has set its Q4 2025 guidance at EPS. As a group, analysts predict that Broadcom Inc. will post 5.38 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 30th. Stockholders of record on Monday, September 22nd will be paid a dividend of $0.59 per share. This represents a $2.36 annualized dividend and a dividend yield of 0.6%. The ex-dividend date is Monday, September 22nd. Broadcom's payout ratio is currently 60.20%.

Analysts Set New Price Targets

AVGO has been the topic of several recent research reports. HSBC raised Broadcom from a "hold" rating to a "buy" rating and set a $400.00 price objective on the stock in a report on Tuesday, June 24th. Barclays lifted their price objective on Broadcom from $265.00 to $400.00 and gave the company an "overweight" rating in a research report on Friday, September 5th. UBS Group boosted their target price on Broadcom from $290.00 to $345.00 and gave the stock a "buy" rating in a research report on Monday, August 25th. Morgan Stanley raised their target price on Broadcom from $338.00 to $357.00 and gave the stock an "overweight" rating in a report on Tuesday, September 2nd. Finally, Citigroup raised their target price on Broadcom from $315.00 to $350.00 and gave the stock a "buy" rating in a report on Friday, September 5th. Three investment analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Buy" and an average price target of $351.92.

Broadcom Company Profile

Broadcom Inc designs, develops, and supplies various semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. The company operates in two segments, Semiconductor Solutions and Infrastructure Software.