HMS Capital Management LLC Lowers Holdings in Broadcom Inc. $AVGO

Key Points

• HMS Capital Management LLC reduced its stake in Broadcom Inc. by 47.9%, now owning 16,186 shares valued at approximately $2.5 million, making it the fund's 21st largest holding.
• Several hedge funds have recently acquired new positions in Broadcom, indicating continued interest in the semiconductor manufacturer, which is largely owned by institutional investors at 76.43%.
• In insider transactions, CEO Hock E. Tan sold over 117,000 shares for nearly $30 million, reflecting a 10.40% decrease in ownership, alongside other significant insider sales.

HMS Capital Management LLC decreased its stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 47.9% in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 16,186 shares of the semiconductor manufacturer's stock after selling 14,883 shares during the quarter. Broadcom comprises about 1.3% of HMS Capital Management LLC's investment portfolio, making the stock its 21st biggest holding. HMS Capital Management LLC's holdings in Broadcom were worth $2,495,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds have also recently modified their holdings of the company. Barnes Dennig Private Wealth Management LLC purchased a new position in shares of Broadcom in the first quarter worth $25,000. Cheviot Value Management LLC purchased a new position in shares of Broadcom in the first quarter worth $25,000. Inlight Wealth Management LLC purchased a new position in shares of Broadcom in the first quarter worth $26,000. Sunbeam Capital Management LLC purchased a new position in shares of Broadcom in the fourth quarter worth $28,000. Finally, Vermillion Wealth Management Inc. purchased a new position in shares of Broadcom in the fourth quarter worth $30,000. Hedge funds and other institutional investors own 76.43% of the company's stock.

Insider Transactions at Broadcom

In other news, insider Mark David Brazeal sold 50,000 shares of the company's stock in a transaction dated Monday, June 23rd. The stock was sold at an average price of $253.28, for a total value of $12,664,000.00. Following the completion of the transaction, the insider owned 415,956 shares of the company's stock, valued at $105,353,335.68. This represents a 10.73% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CEO Hock E. Tan sold 117,758 shares of the stock in a transaction that occurred on Thursday, June 12th. The shares were sold at an average price of $252.91, for a total value of $29,782,175.78. Following the transaction, the chief executive officer directly owned 1,014,152 shares of the company's stock, valued at approximately $256,489,182.32. The trade was a 10.40% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 830,516 shares of company stock valued at $217,286,457. 2.00% of the stock is owned by corporate insiders.

Broadcom Stock Performance

NASDAQ:AVGO opened at $294.91 on Wednesday. The stock has a 50-day simple moving average of $280.51 and a two-hundred day simple moving average of $230.93. Broadcom Inc. has a 52-week low of $134.90 and a 52-week high of $317.35. The company has a debt-to-equity ratio of 0.89, a quick ratio of 0.98 and a current ratio of 1.08. The firm has a market capitalization of $1.39 trillion, a PE ratio of 110.45, a P/E/G ratio of 2.17 and a beta of 1.15.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its quarterly earnings results on Thursday, June 5th. The semiconductor manufacturer reported $1.58 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.57 by $0.01. Broadcom had a return on equity of 35.49% and a net margin of 22.64%.The business had revenue of $15 billion during the quarter, compared to analyst estimates of $14.98 billion. During the same quarter in the previous year, the company posted $10.96 earnings per share. Broadcom's revenue for the quarter was up 20.2% on a year-over-year basis. Broadcom has set its Q3 2025 guidance at EPS. Analysts forecast that Broadcom Inc. will post 5.38 EPS for the current year.

Broadcom Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, June 30th. Stockholders of record on Friday, June 20th were paid a $0.59 dividend. The ex-dividend date of this dividend was Friday, June 20th. This represents a $2.36 dividend on an annualized basis and a dividend yield of 0.8%. Broadcom's dividend payout ratio is 88.39%.

Analysts Set New Price Targets

Several research analysts have recently weighed in on the company. HSBC upgraded Broadcom from a "hold" rating to a "buy" rating and set a $400.00 price target for the company in a research note on Tuesday, June 24th. JPMorgan Chase & Co. lifted their price objective on Broadcom from $250.00 to $325.00 and gave the stock an "overweight" rating in a report on Friday, June 6th. Wells Fargo & Company lifted their price objective on Broadcom from $230.00 to $255.00 and gave the stock an "equal weight" rating in a report on Friday, June 6th. Seaport Res Ptn raised Broadcom to a "strong-buy" rating in a report on Wednesday, April 30th. Finally, KeyCorp lifted their price objective on Broadcom from $315.00 to $330.00 and gave the stock an "overweight" rating in a report on Tuesday, July 8th. Three equities research analysts have rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat, Broadcom currently has a consensus rating of "Buy" and an average target price of $295.96.

Broadcom 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.

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