SCS Capital Management LLC Trims Position in Broadcom Inc. $AVGO

Key Points

• SCS Capital Management trimmed its Broadcom stake by 15.3% in the fourth quarter, selling 18,610 shares and leaving it with 102,986 shares worth about $35.6 million.
• Broadcom’s latest earnings were strong, with record second-quarter revenue of $22.19 billion, EPS of $2.44 topping estimates, and revenue up 47.9% year over year.
• Despite the beat, the stock fell about 12.6% as investors focused on weaker-than-expected third-quarter AI revenue guidance, even though analysts largely kept bullish ratings and raised price targets.

SCS Capital Management LLC trimmed its position in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 15.3% in the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 102,986 shares of the semiconductor manufacturer's stock after selling 18,610 shares during the quarter. SCS Capital Management LLC's holdings in Broadcom were worth $35,643,000 as of its most recent SEC filing.

Other institutional investors have also recently made changes to their positions in the company. Miller Global Investments LLC purchased a new position in shares of Broadcom during the 4th quarter valued at approximately $31,000. Nvest Wealth Strategies Inc. acquired a new stake in Broadcom during the 4th quarter worth $33,000. Family CFO Inc acquired a new stake in Broadcom during the 4th quarter worth $35,000. PayPay Securities Corp boosted its stake in Broadcom by 88.9% during the 4th quarter. PayPay Securities Corp now owns 119 shares of the semiconductor manufacturer's stock worth $41,000 after purchasing an additional 56 shares during the last quarter. Finally, Camelot Portfolios LLC acquired a new stake in Broadcom during the 4th quarter worth $45,000. 76.43% of the stock is owned by hedge funds and other institutional investors.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom still delivered record second-quarter revenue of $22.19 billion, topped EPS estimates, and generated strong free cash flow, showing underlying business strength. Broadcom Inc. Announces Second Quarter Fiscal Year 2026 Financial Results and Quarterly Dividend
• Positive Sentiment: AI semiconductor revenue surged 143% year over year to $10.8 billion, and management signaled continued demand from hyperscale customers. Broadcom's sales and AI chip forecast comes in below expectations, shares tumble
• Positive Sentiment: Several analysts raised price targets after the report, including JPMorgan, Bank of America, Mizuho, and Benchmark, indicating Street optimism remains intact despite the selloff. Benzinga analyst target updates
• Neutral Sentiment: Broadcom declared a quarterly dividend of $0.65 per share, reinforcing its shareholder-return profile but not enough to offset the earnings-driven volatility.
• Negative Sentiment: The stock sold off because third-quarter AI revenue guidance came in below elevated expectations, raising concerns that AI growth may be normalizing faster than investors hoped. Broadcom: AI guidance gap reveals the cost of sky-high expectations
• Negative Sentiment: Broadcom’s disappointment sparked a broader semiconductor retreat, pressuring chip stocks and contributing to weakness in the Nasdaq. Micron, Marvell, and Broadcom lead chipmakers' premarket losses

Broadcom Stock Down 12.6%

AVGO stock opened at $418.91 on Friday. The company's 50 day moving average price is $394.88 and its 200 day moving average price is $361.73. The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.73 and a current ratio of 1.90. Broadcom Inc. has a fifty-two week low of $241.11 and a fifty-two week high of $495.00. The firm has a market capitalization of $1.98 trillion, a price-to-earnings ratio of 69.82, a PEG ratio of 0.99 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, topping analysts' consensus estimates of $2.40 by $0.04. Broadcom had a net margin of 38.85% and a return on equity of 42.88%. The firm had revenue of $22.19 billion for the quarter, compared to analyst estimates of $22.13 billion. During the same period in the prior year, the firm earned $1.58 earnings per share. The business's quarterly revenue was up 47.9% compared to the same quarter last year. On average, equities research analysts anticipate that Broadcom Inc. will post 9.89 EPS for the current fiscal year.

Broadcom Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 22nd will be issued a $0.65 dividend. This represents a $2.60 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date of this dividend is Monday, June 22nd. Broadcom's dividend payout ratio is 50.78%.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on the stock. Oppenheimer reaffirmed an "outperform" rating and set a $535.00 target price (up from $450.00) on shares of Broadcom in a research note on Thursday. Deutsche Bank Aktiengesellschaft restated a "buy" rating and issued a $515.00 price objective (up from $430.00) on shares of Broadcom in a report on Thursday. Evercore restated an "outperform" rating and issued a $582.00 price objective on shares of Broadcom in a report on Tuesday, May 19th. Cantor Fitzgerald restated an "overweight" rating and issued a $525.00 price objective on shares of Broadcom in a report on Thursday. Finally, Susquehanna restated a "positive" rating and issued a $490.00 price objective (up from $450.00) on shares of Broadcom in a report on Thursday, May 28th. One investment analyst has rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat, Broadcom currently has a consensus rating of "Moderate Buy" and a consensus target price of $490.13.

Insiders Place Their Bets

In related news, insider Charlie B. Kawwas sold 39,116 shares of the company's stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $321.61, for a total value of $12,580,096.76. Following the completion of the transaction, the insider directly owned 74,626 shares of the company's stock, valued at $24,000,467.86. This represents a 34.39% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider S. Ram Velaga sold 38,841 shares of the company's stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $321.60, for a total value of $12,491,265.60. Following the completion of the transaction, the insider directly owned 96,147 shares of the company's stock, valued at $30,920,875.20. This trade represents a 28.77% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 324,282 shares of company stock valued at $106,425,249. 1.90% of the stock is owned by company insiders.

Broadcom Company Profile

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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