KCM Investment Advisors LLC Has $20.58 Million Stock Holdings in Broadcom Inc. $AVGO

Key Points

• KCM Investment Advisors reduced its Broadcom stake by 12.1% in the fourth quarter, leaving it with 59,460 shares valued at about $20.58 million.
• Broadcom reported strong quarterly results, with earnings of $2.44 per share beating estimates and revenue rising 47.9% year over year to $22.19 billion, driven by robust AI and semiconductor demand.
• Analysts remain broadly upbeat on AVGO, with multiple firms raising price targets and the stock carrying a Moderate Buy consensus rating and average target price of $490.13.

KCM Investment Advisors LLC cut its stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 12.1% during the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 59,460 shares of the semiconductor manufacturer's stock after selling 8,210 shares during the quarter. KCM Investment Advisors LLC's holdings in Broadcom were worth $20,579,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds have also recently bought and sold shares of the business. Knollwood Investment Advisory LLC increased its position in Broadcom by 15.4% during the fourth quarter. Knollwood Investment Advisory LLC now owns 40,883 shares of the semiconductor manufacturer's stock worth $14,150,000 after buying an additional 5,452 shares during the last quarter. Landscape Capital Management L.L.C. increased its position in Broadcom by 207.9% during the fourth quarter. Landscape Capital Management L.L.C. now owns 7,686 shares of the semiconductor manufacturer's stock worth $2,660,000 after buying an additional 5,190 shares during the last quarter. Clear Street Group Inc. increased its position in Broadcom by 18.7% during the fourth quarter. Clear Street Group Inc. now owns 287,254 shares of the semiconductor manufacturer's stock worth $99,419,000 after buying an additional 45,179 shares during the last quarter. Cornerstone Financial Management LLC acquired a new position in Broadcom during the fourth quarter worth $425,000. Finally, Droms Strauss Advisors Inc. MO ADV acquired a new position in Broadcom during the fourth quarter worth $406,000. 76.43% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several research firms have commented on AVGO. Benchmark increased their target price on shares of Broadcom from $485.00 to $545.00 and gave the stock a "buy" rating in a research report on Thursday, June 4th. Citigroup reissued a "buy" rating on shares of Broadcom in a research report on Thursday, June 4th. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and set a $515.00 target price (up from $430.00) on shares of Broadcom in a research report on Thursday, June 4th. Royal Bank Of Canada increased their target price on shares of Broadcom from $360.00 to $400.00 and gave the stock a "sector perform" rating in a research report on Thursday, June 4th. Finally, Erste Group Bank raised shares of Broadcom from a "hold" rating to a "buy" rating in a research report on Friday, June 5th. One analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $490.13.

Broadcom Price Performance

NASDAQ AVGO opened at $382.07 on Monday. The company has a debt-to-equity ratio of 0.71, a quick ratio of 2.01 and a current ratio of 2.24. The firm has a 50-day simple moving average of $404.26 and a 200 day simple moving average of $363.22. Broadcom Inc. has a twelve month low of $244.17 and a twelve month high of $495.00. The stock has a market cap of $1.82 trillion, a PE ratio of 63.68, a PEG ratio of 0.67 and a beta of 1.41.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share for the quarter, beating the consensus estimate of $2.40 by $0.04. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The business had revenue of $22.19 billion during the quarter, compared to analysts' expectations of $22.13 billion. During the same quarter last year, the company earned $1.58 earnings per share. The firm's revenue was up 47.9% on a year-over-year basis. On average, research analysts forecast that Broadcom Inc. will post 10.24 EPS for the current year.

Broadcom Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 22nd will be paid a $0.65 dividend. This represents a $2.60 annualized dividend and a dividend yield of 0.7%. The ex-dividend date is Monday, June 22nd. Broadcom's dividend payout ratio (DPR) is presently 43.33%.

Insiders Place Their Bets

In related news, CFO Kirsten M. Spears sold 36,292 shares of the stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $321.60, for a total value of $11,671,507.20. Following the completion of the sale, the chief financial officer owned 327,760 shares in the company, valued at approximately $105,407,616. This trade represents a 9.97% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Justine Page sold 2,018 shares of the stock in a transaction dated Wednesday, April 8th. The shares were sold at an average price of $353.00, for a total transaction of $712,354.00. Following the completion of the sale, the director owned 18,164 shares of the company's stock, valued at approximately $6,411,892. The trade was a 10.00% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 215,970 shares of company stock valued at $71,104,945 in the last quarter. 1.90% of the stock is currently owned by insiders.

Key Stories Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s quarterly results were very strong, with revenue up 48% to a record $22.2 billion, semiconductor revenue up 79%, AI semiconductor revenue up 143% to $10.8 billion, and more than $30 billion in AI bookings, suggesting demand remains robust. Article Title
• Positive Sentiment: Several analysts and commentators argue the recent drop could be a buying opportunity, saying Broadcom remains a core infrastructure winner in AI and that Wall Street’s long-term outlook is still constructive. Article Title
• Positive Sentiment: Fresh coverage highlighted Broadcom as one of the stocks with catalysts heading into the second half of the year, and some analysts have raised earnings forecasts and price targets despite the selloff. Article Title
• Neutral Sentiment: Jim Cramer said Broadcom’s earnings were “not good” and suggested tech stocks are harder to trust as leadership names, reflecting a more cautious market mood around the stock. Article Title
• Neutral Sentiment: Broadcom also announced cash tender offers for certain outstanding debt securities, a routine balance-sheet move that is unlikely to move the stock by itself. Article Title
• Negative Sentiment: Market commentary says the stock is being punished because investors are nitpicking Broadcom’s AI outlook and pricing the shares as if growth must keep accelerating without any hiccups. Article Title
• Negative Sentiment: One note warned that Broadcom told investors to expect gross profit margins to continue falling, reinforcing concerns that profitability may soften even as revenue grows. Article Title

About Broadcom

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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