SCS Capital Management LLC Acquires Shares of 44,250 Broadcom Inc. $AVGO

Key Points

• SCS Capital Management LLC has purchased a new stake in Broadcom Inc., acquiring 44,250 shares valued at approximately $7.4 million.
• Broadcom's stock has increased by 3.2%, with the company recently achieving a market capitalization of $1.63 trillion and reporting quarterly earnings that exceeded analysts' expectations.
• The firm has announced a quarterly dividend of $0.59, reflecting an annualized yield of 0.7%, with the ex-dividend date set for September 22nd.

SCS Capital Management LLC bought a new position in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund bought 44,250 shares of the semiconductor manufacturer's stock, valued at approximately $7,409,000.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the company. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in shares of Broadcom by 2.4% during 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 in the last quarter. Legacy Advisory Services LLC bought a new stake in Broadcom in the 1st quarter valued at $421,000. Woodline Partners LP lifted its position in Broadcom by 82.2% in the 1st quarter. Woodline Partners LP now owns 457,817 shares of the semiconductor manufacturer's stock valued at $76,652,000 after acquiring an additional 206,585 shares in the last quarter. American Trust lifted its position in Broadcom by 33.5% in the 1st quarter. American Trust now owns 5,580 shares of the semiconductor manufacturer's stock valued at $934,000 after acquiring an additional 1,400 shares in the last quarter. Finally, Empowered Funds LLC lifted its position in Broadcom by 8.6% in the 1st quarter. Empowered Funds LLC now owns 264,686 shares of the semiconductor manufacturer's stock valued at $44,316,000 after acquiring an additional 20,885 shares in the last quarter. 76.43% of the stock is owned by institutional investors.

Insiders Place Their Bets

In related news, Director Henry Samueli sold 473,898 shares of the company's stock in a transaction dated Wednesday, June 25th. The shares were sold at an average price of $265.33, for a total value of $125,739,356.34. Following the transaction, the director owned 38,188,575 shares in the company, valued at approximately $10,132,574,604.75. This represents a 1.23% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Gayla J. Delly sold 3,000 shares of the company's stock in a transaction dated Thursday, June 26th. The shares were sold at an average price of $265.13, for a total transaction of $795,390.00. Following the completion of the transaction, the director owned 33,352 shares in the company, valued at approximately $8,842,615.76. This trade represents a 8.25% 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 worth $1,227,869 and have sold 702,758 shares worth $184,975,481. Corporate insiders own 2.00% of the company's stock.

Analyst Ratings Changes

Several equities research analysts recently commented on AVGO shares. HSBC raised shares of Broadcom from a "hold" rating to a "buy" rating and set a $400.00 price objective on the stock in a research report on Tuesday, June 24th. Hsbc Global Res upgraded shares of Broadcom from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, June 24th. Oppenheimer reiterated an "outperform" rating and issued a $360.00 price target (up from $325.00) on shares of Broadcom in a research note on Friday, September 5th. Redburn Atlantic initiated coverage on shares of Broadcom in a research note on Wednesday, May 28th. They issued a "buy" rating and a $301.00 price target on the stock. Finally, Citigroup lifted their price target on shares of Broadcom from $315.00 to $350.00 and gave the company a "buy" rating in a research note on Friday, September 5th. Three research analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Buy" and an average target price of $354.04.

Broadcom Stock Performance

Shares of Broadcom stock traded up $0.24 during trading on Friday, hitting $359.87. 24,427,446 shares of the stock were exchanged, compared to its average volume of 26,255,184. The stock has a market capitalization of $1.69 trillion, a price-to-earnings ratio of 91.80, a price-to-earnings-growth ratio of 2.04 and a beta of 1.16. The company has a fifty day moving average price of $298.61 and a 200-day moving average price of $240.90. Broadcom Inc. has a 1-year low of $138.10 and a 1-year high of $374.23. The company has a current ratio of 1.50, a quick ratio of 1.37 and a debt-to-equity ratio of 0.86.

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 for the quarter, topping the consensus estimate of $1.66 by $0.03. Broadcom had a net margin of 31.59% and a return on equity of 36.60%. The company had revenue of $15.95 billion for the quarter, compared to analyst estimates of $15.82 billion. During the same period in the previous year, the business earned $1.24 EPS. Broadcom'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. As a group, equities analysts predict that Broadcom Inc. will post 5.38 EPS for the current fiscal year.

Broadcom Dividend Announcement

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

About Broadcom

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.