K2 Principal Fund L.P. Sells 1,228 Shares of Broadcom Inc. $AVGO

Key Points

• K2 Principal Fund L.P. has reduced its stake in Broadcom Inc. by 23.2%, selling 1,228 shares and now holding 4,072 shares valued at approximately $682,000.
• Several institutional investors, including Nuveen LLC and Price T Rowe Associates Inc. MD, have made significant purchases and increases in their positions in Broadcom, indicating strong institutional interest.
• Broadcom recently reported a revenue increase of 22% year-over-year and announced a quarterly dividend of $0.59 per share, reflecting a strong financial performance and commitment to returning value to shareholders.

K2 Principal Fund L.P. decreased its position in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 23.2% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 4,072 shares of the semiconductor manufacturer's stock after selling 1,228 shares during the quarter. K2 Principal Fund L.P.'s holdings in Broadcom were worth $682,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors have also recently modified their holdings of AVGO. Nuveen LLC bought a new position in shares of Broadcom in the first quarter valued at approximately $6,649,117,000. Price T Rowe Associates Inc. MD lifted its stake in Broadcom by 37.8% during the 1st quarter. Price T Rowe Associates Inc. MD now owns 65,509,579 shares of the semiconductor manufacturer's stock valued at $10,968,270,000 after acquiring an additional 17,985,046 shares in the last quarter. GAMMA Investing LLC lifted its stake in Broadcom by 18,179.3% during the 1st quarter. GAMMA Investing LLC now owns 17,276,164 shares of the semiconductor manufacturer's stock valued at $2,892,548,000 after acquiring an additional 17,181,652 shares in the last quarter. Goldman Sachs Group Inc. lifted its stake in Broadcom by 16.7% during the 1st quarter. Goldman Sachs Group Inc. now owns 31,854,414 shares of the semiconductor manufacturer's stock valued at $5,333,384,000 after acquiring an additional 4,550,647 shares in the last quarter. Finally, Deutsche Bank AG lifted its stake in Broadcom by 36.9% during the 1st quarter. Deutsche Bank AG now owns 15,758,895 shares of the semiconductor manufacturer's stock valued at $2,638,512,000 after acquiring an additional 4,245,345 shares in the last quarter. Institutional investors own 76.43% of the company's stock.

Broadcom Price Performance

Broadcom stock traded up $28.79 during mid-day trading on Friday, hitting $334.89. 78,318,626 shares of the company traded hands, compared to its average volume of 17,635,120. Broadcom Inc. has a one year low of $134.90 and a one year high of $356.34. The stock has a market cap of $1.58 trillion, a price-to-earnings ratio of 85.43, a price-to-earnings-growth ratio of 2.38 and a beta of 1.16. 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 stock has a fifty day moving average price of $292.09 and a 200-day moving average price of $237.25.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its earnings results on Thursday, September 4th. The semiconductor manufacturer reported $1.69 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.66 by $0.03. Broadcom had a net margin of 31.59% and a return on equity of 37.17%. The business had revenue of $15.95 billion during the quarter, compared to analyst estimates of $15.82 billion. During the same period in the previous year, the business posted $1.24 earnings per share. Broadcom's revenue for the quarter was up 22.0% on a year-over-year basis. Broadcom has set its Q4 2025 guidance at EPS. On average, equities analysts predict that Broadcom Inc. will post 5.38 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 30th. Shareholders of record on Monday, September 22nd will be paid a dividend of $0.59 per share. The ex-dividend date of this dividend is Monday, September 22nd. This represents a $2.36 annualized dividend and a dividend yield of 0.7%. Broadcom's dividend payout ratio (DPR) is 88.39%.

Insider Activity

In other news, CFO Kirsten M. Spears sold 56,310 shares of the company's stock in a transaction on Wednesday, June 18th. The shares were sold at an average price of $251.75, for a total value of $14,176,042.50. Following the completion of the sale, the chief financial officer owned 361,937 shares of the company's stock, valued at approximately $91,117,639.75. This represents a 13.46% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Henry Samueli sold 473,898 shares of the company's stock in a transaction on Wednesday, June 25th. The shares were sold at an average price of $265.33, for a total transaction of $125,739,356.34. Following the completion of the sale, the director directly owned 38,188,575 shares of the company's stock, valued at $10,132,574,604.75. This trade represents a 1.23% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 830,516 shares of company stock valued at $217,286,457. Insiders own 2.00% of the company's stock.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on AVGO. Evercore ISI restated an "outperform" rating and set a $342.00 price objective (up from $304.00) on shares of Broadcom in a research note on Thursday. Morgan Stanley raised their price objective on Broadcom from $338.00 to $357.00 and gave the company an "overweight" rating in a research note on Tuesday. Rosenblatt Securities raised their price objective on Broadcom from $340.00 to $400.00 and gave the company a "buy" rating in a research note on Friday. HSBC raised Broadcom from a "hold" rating to a "buy" rating and set a $400.00 target price for the company in a report on Tuesday, June 24th. Finally, Cowen reaffirmed a "buy" rating on shares of Broadcom in a report on Friday, June 6th. Three research analysts have rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and one has issued a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Buy" and an average price target of $351.00.

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.