Red Mountain Financial LLC Sells 8,666 Shares of Broadcom Inc. $AVGO

Key Points

• Red Mountain Financial LLC reduced its stake in Broadcom Inc. by 89.1%, selling 8,666 shares and leaving it with only 1,055 shares worth approximately $291,000.
• Broadcom reported a 22.0% increase in quarterly revenue year-over-year, with earnings per share of $1.69, slightly exceeding analysts’ expectations.
• Several major firms, including Vanguard and Price T Rowe Associates, have increased their holdings in Broadcom, indicating institutional confidence, as hedge funds and other investors now own 76.43% of the stock.

Red Mountain Financial LLC lessened its stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 89.1% during the 2nd quarter, according to its most recent 13F filing with the SEC. The firm owned 1,055 shares of the semiconductor manufacturer's stock after selling 8,666 shares during the period. Red Mountain Financial LLC's holdings in Broadcom were worth $291,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds also recently bought and sold shares of AVGO. Vanguard Group Inc. lifted its holdings in shares of Broadcom by 0.4% in the 1st quarter. Vanguard Group Inc. now owns 477,220,137 shares of the semiconductor manufacturer's stock worth $79,900,968,000 after acquiring an additional 2,085,534 shares during the last quarter. Price T Rowe Associates Inc. MD raised its position in Broadcom by 37.8% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 65,509,579 shares of the semiconductor manufacturer's stock worth $10,968,270,000 after purchasing an additional 17,985,046 shares during the period. Nuveen LLC bought a new stake in Broadcom in the first quarter worth about $6,649,117,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in Broadcom by 2.4% in the first 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 during the last quarter. Finally, Charles Schwab Investment Management Inc. boosted its position in shares of Broadcom by 3.2% during the first 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 buying an additional 1,043,948 shares during the period. 76.43% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at Broadcom

In related news, CEO Hock E. Tan sold 148,154 shares of the company's stock in a transaction on Wednesday, September 10th. The stock was sold at an average price of $336.67, for a total transaction of $49,879,007.18. Following the completion of the sale, the chief executive officer directly owned 825,998 shares in the company, valued at $278,088,746.66. This represents a 15.21% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, Director Henry Samueli sold 368,797 shares of Broadcom stock in a transaction dated Wednesday, September 24th. The shares were sold at an average price of $337.91, for a total value of $124,620,194.27. Following the completion of the transaction, the director owned 37,722,534 shares in the company, valued at $12,746,821,463.94. This trade represents a 0.97% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders purchased 3,550 shares of company stock worth $1,227,869 and sold 666,071 shares worth $225,623,008. 2.00% of the stock is currently owned by insiders.

Broadcom Stock Down 0.9%

Shares of Broadcom stock opened at $335.49 on Tuesday. The company has a debt-to-equity ratio of 0.86, a current ratio of 1.50 and a quick ratio of 1.37. The stock has a market cap of $1.58 trillion, a price-to-earnings ratio of 85.58, a PEG ratio of 1.87 and a beta of 1.20. The firm's 50-day moving average is $319.25 and its two-hundred day moving average is $259.24. Broadcom Inc. has a 1 year low of $138.10 and a 1 year high of $374.23.

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

Broadcom Announces Dividend

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

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on AVGO shares. Mizuho increased their price target on Broadcom from $355.00 to $410.00 and gave the stock an "outperform" rating in a report on Friday, September 12th. Wall Street Zen upgraded Broadcom from a "hold" rating to a "buy" rating in a research note on Saturday, September 6th. KeyCorp reiterated an "overweight" rating and set a $420.00 target price (up from $400.00) on shares of Broadcom in a research report on Tuesday, September 30th. Barclays upped their price target on shares of Broadcom from $265.00 to $400.00 and gave the stock an "overweight" rating in a report on Friday, September 5th. Finally, Piper Sandler raised their price target on shares of Broadcom from $315.00 to $375.00 and gave the stock an "overweight" rating in a research note on Friday, September 5th. Three research analysts have rated the stock with a Strong Buy rating, thirty have assigned a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat.com, Broadcom currently has an average rating of "Buy" and an average price target of $357.22.

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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