Naples Global Advisors LLC Lowers Position in Broadcom Inc. $AVGO

Key Points

• Naples Global Advisors LLC reduced its position in Broadcom Inc. by 3.5% in Q2, retaining 120,749 shares valued at approximately $33.29 million.
• CEO Hock E. Tan sold 148,154 shares for nearly $49.88 million, reducing his ownership by 15.21% to around 825,998 shares.
• Analyst ratings for Broadcom remain positive, with recent target prices raised by several firms, with an average target now at $357.22.

Naples Global Advisors LLC trimmed its position in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 3.5% in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 120,749 shares of the semiconductor manufacturer's stock after selling 4,332 shares during the quarter. Broadcom accounts for 2.9% of Naples Global Advisors LLC's portfolio, making the stock its 3rd largest position. Naples Global Advisors LLC's holdings in Broadcom were worth $33,285,000 at the end of the most recent reporting period.

Other institutional investors have also recently bought and sold shares of the company. Vanguard Group Inc. lifted its position in shares of Broadcom by 0.4% during the 1st quarter. Vanguard Group Inc. now owns 477,220,137 shares of the semiconductor manufacturer's stock worth $79,900,968,000 after buying an additional 2,085,534 shares during the period. Price T Rowe Associates Inc. MD lifted its holdings in shares of Broadcom by 37.8% during the first 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 during the period. Nuveen LLC bought a new stake in shares of Broadcom in the 1st quarter worth about $6,649,117,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of Broadcom by 2.4% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 35,243,467 shares of the semiconductor manufacturer's stock worth $5,900,814,000 after purchasing an additional 842,088 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. lifted its holdings in Broadcom by 3.2% during the 1st quarter. Charles Schwab Investment Management Inc. now owns 33,852,310 shares of the semiconductor manufacturer's stock valued at $5,668,134,000 after purchasing an additional 1,043,948 shares during the last quarter. Institutional investors and hedge funds own 76.43% of the company's stock.

Insider Activity

In other news, CEO Hock E. Tan sold 148,154 shares of the stock in a transaction dated Wednesday, September 10th. The stock was sold at an average price of $336.67, for a total value of $49,879,007.18. Following the completion of the sale, the chief executive officer owned 825,998 shares of the company's stock, valued at approximately $278,088,746.66. This represents a 15.21% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider Charlie B. Kawwas sold 3,893 shares of the stock in a transaction that occurred on Wednesday, September 17th. The shares were sold at an average price of $347.82, for a total transaction of $1,354,063.26. Following the sale, the insider directly owned 25,295 shares of the company's stock, valued at $8,798,106.90. This represents a 13.34% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have acquired 3,550 shares of company stock valued at $1,227,869 and have sold 666,071 shares valued at $225,623,008. Insiders own 2.00% of the company's stock.

Analyst Ratings Changes

Several analysts have weighed in on AVGO shares. JPMorgan Chase & Co. upped their price objective on shares of Broadcom from $325.00 to $400.00 and gave the stock an "overweight" rating in a research note on Friday, September 5th. Wells Fargo & Company increased their price target on Broadcom from $255.00 to $345.00 and gave the stock an "equal weight" rating in a research report on Friday, September 5th. UBS Group lifted their price objective on Broadcom from $290.00 to $345.00 and gave the company a "buy" rating in a research report on Monday, August 25th. Piper Sandler increased their target price on Broadcom from $315.00 to $375.00 and gave the stock an "overweight" rating in a report on Friday, September 5th. Finally, Rosenblatt Securities raised their target price on Broadcom from $340.00 to $400.00 and gave the company a "buy" rating in a research note on Friday, September 5th. Three analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Buy" and a consensus price target of $357.22.

Broadcom Stock Up 0.1%

NASDAQ:AVGO opened at $338.37 on Monday. The stock has a 50-day simple moving average of $318.43 and a 200 day simple moving average of $258.24. The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.37 and a current ratio of 1.50. The company has a market cap of $1.60 trillion, a PE ratio of 86.32, a PEG ratio of 1.87 and a beta of 1.20. Broadcom Inc. has a 52-week low of $138.10 and a 52-week high of $374.23.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its quarterly earnings results on Thursday, September 4th. The semiconductor manufacturer reported $1.69 EPS for the quarter, beating analysts' consensus estimates of $1.66 by $0.03. Broadcom had a net margin of 31.59% and a return on equity of 36.60%. The firm had revenue of $15.95 billion during the quarter, compared to analysts' expectations of $15.82 billion. During the same quarter last year, the company posted $1.24 earnings per share. The company'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. On average, sell-side analysts expect that Broadcom Inc. will post 5.38 EPS for the current fiscal year.

Broadcom Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 30th. Stockholders of record on Monday, September 22nd were issued a dividend of $0.59 per share. The ex-dividend date of this dividend was Monday, September 22nd. This represents a $2.36 dividend on an annualized basis and a dividend yield of 0.7%. Broadcom's payout ratio is 60.20%.

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.

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