RKL Wealth Management LLC Sells 2,114 Shares of Broadcom Inc. $AVGO

Key Points

• RKL Wealth Management cut its Broadcom stake by 44.6% in the first quarter, selling 2,114 shares and leaving the firm with 2,628 shares valued at about $813,000.
• Broadcom posted strong quarterly results, with EPS of $2.44 beating estimates and revenue rising 47.9% year over year to $22.19 billion. The company also declared a quarterly dividend of $0.65 per share.
• Wall Street remains generally bullish on Broadcom, with analysts maintaining a Moderate Buy consensus and an average price target of $493.24, despite recent insider selling and a pullback in the stock.

RKL Wealth Management LLC lessened its stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 44.6% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 2,628 shares of the semiconductor manufacturer's stock after selling 2,114 shares during the period. RKL Wealth Management LLC's holdings in Broadcom were worth $813,000 as of its most recent SEC filing.

A number of other institutional investors also recently modified their holdings of the company. Lynch Asset Management Inc. lifted its stake in shares of Broadcom by 1.6% in the first quarter. Lynch Asset Management Inc. now owns 18,550 shares of the semiconductor manufacturer's stock worth $5,741,000 after buying an additional 300 shares during the last quarter. Semus Wealth Partners LLC raised its holdings in Broadcom by 6.3% in the 1st quarter. Semus Wealth Partners LLC now owns 6,370 shares of the semiconductor manufacturer's stock worth $1,971,000 after acquiring an additional 380 shares during the period. Cane Capital Partners LLC raised its holdings in Broadcom by 21.2% in the 1st quarter. Cane Capital Partners LLC now owns 16,358 shares of the semiconductor manufacturer's stock worth $5,063,000 after acquiring an additional 2,864 shares during the period. Vertrix Wealth Management LLC acquired a new position in Broadcom during the 1st quarter worth $5,436,000. Finally, Essex LLC boosted its holdings in Broadcom by 9.2% during the first quarter. Essex LLC now owns 3,629 shares of the semiconductor manufacturer's stock valued at $1,123,000 after acquiring an additional 305 shares during the period. Institutional investors own 76.43% of the company's stock.

Broadcom Price Performance

Shares of AVGO stock opened at $360.45 on Monday. Broadcom Inc. has a 52 week low of $269.58 and a 52 week high of $495.00. The stock has a market capitalization of $1.71 trillion, a PE ratio of 60.08, a PEG ratio of 0.63 and a beta of 1.45. 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 stock's fifty day moving average is $407.92 and its 200-day moving average is $362.49.

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

Broadcom Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Monday, June 22nd were paid a $0.65 dividend. The ex-dividend date of this dividend was Monday, June 22nd. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.7%. Broadcom's payout ratio is currently 43.33%.

Insider Activity at Broadcom

In other news, insider S. Ram Velaga sold 17,260 shares of the stock in a transaction that occurred on Thursday, April 9th. The shares were sold at an average price of $352.12, for a total transaction of $6,077,591.20. Following the sale, the insider directly owned 65,932 shares of the company's stock, valued at $23,215,975.84. This represents a 20.75% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Mark David Brazeal sold 4,825 shares of the firm's stock in a transaction that occurred on Wednesday, June 17th. The shares were sold at an average price of $394.91, for a total transaction of $1,905,440.75. Following the completion of the sale, the insider directly owned 269,989 shares of the company's stock, valued at approximately $106,621,355.99. This represents a 1.76% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 60,987 shares of company stock valued at $21,899,980 in the last three months. 1.90% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on the company. Morgan Stanley set a $502.00 price objective on Broadcom and gave the stock an "overweight" rating in a research note on Thursday, June 4th. The Goldman Sachs Group reaffirmed a "buy" rating and issued a $525.00 target price on shares of Broadcom in a report on Thursday, June 4th. Erste Group Bank raised Broadcom from a "hold" rating to a "buy" rating in a research report on Friday, June 5th. Dbs Bank upgraded Broadcom to a "moderate buy" rating in a report on Thursday, June 18th. Finally, DA Davidson increased their price objective on Broadcom from $375.00 to $400.00 and gave the company a "neutral" rating in a research report on Thursday, June 4th. One analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $493.24.

Key Headlines Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: JPMorgan, UBS, Jefferies and other analysts remain constructive on Broadcom’s AI-driven growth, with price targets well above current levels and continued optimism around custom AI silicon demand, including exposure to customers such as OpenAI and Anthropic. UBS Reaffirms Buy Rating on Broadcom (AVGO) Amid AI ASIC Demand and OpenAI, Anthropic Growth
• Positive Sentiment: Articles highlighting Broadcom’s partnership with OpenAI on the “Jalapeño” AI accelerator reinforce the market’s bullish view that AI infrastructure can keep driving revenue growth. What Broadcom (AVGO)'s Jalapeño AI Accelerator Partnership With OpenAI Means For Shareholders
• Neutral Sentiment: Several recent write-ups argue Broadcom may be attractive after its pullback, but they mostly restate the same long-term thesis rather than pointing to a new catalyst. Why Broadcom Stock Slumped Today
• Neutral Sentiment: Investors continue to search for clues on whether Broadcom can rebound from its post-earnings decline, with coverage focusing on earnings estimates and fair-value changes. Broadcom (AVGO) Stock Gets Fair Value Boost As Analysts Split On AI Outlook
• Negative Sentiment: Director Justine Page sold 1,602 shares of Broadcom stock, extending insider-selling headlines that can weigh on sentiment even if the sale is relatively small versus the company’s size. SEC Form 4 filing for Justine Page sale
• Negative Sentiment: Broadcom remains about 14% below its last earnings report level, and recent commentary suggests investors are still uneasy about whether the company’s strong results were enough to justify its premium valuation. Broadcom Inc. (AVGO) Down 14% Since Last Earnings Report: Can It Rebound?

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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