Insider Selling: Broadcom (NASDAQ:AVGO) CEO Sells 148,154 Shares of Stock

Key Points

• Broadcom CEO Hock Tan sold 148,154 shares of company stock for approximately $49.9 million, reducing his total ownership by 15.21% to about 826,000 shares valued at $278 million.
• The company reported a quarterly revenue of $15.95 billion, exceeding analyst expectations and marking a 22% year-over-year increase, with EPS reaching $1.69.
• Broadcom announced a quarterly dividend of $0.59 per share, with an annualized yield of 0.7%, and is set to be paid on September 30th.

Broadcom Inc. (NASDAQ:AVGO - Get Free Report) CEO Hock 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 transaction, the chief executive officer owned 825,998 shares of the company's stock, valued at approximately $278,088,746.66. The trade was a 15.21% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link.

Broadcom Price Performance

Shares of AVGO traded up $0.24 during trading hours on Friday, reaching $359.87. The company had a trading volume of 31,084,881 shares, compared to its average volume of 26,324,061. The firm has a 50 day simple moving average of $298.61 and a 200-day simple moving average of $240.90. The company has a current ratio of 1.50, a quick ratio of 1.37 and a debt-to-equity ratio of 0.86. The company has a market capitalization of $1.69 trillion, a price-to-earnings ratio of 91.80, a PEG ratio of 2.04 and a beta of 1.16. Broadcom Inc. has a 12-month low of $138.10 and a 12-month high of $374.23.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its quarterly earnings data 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 for the quarter, compared to analysts' expectations of $15.82 billion. During the same period in the prior year, the company earned $1.24 EPS. The firm's revenue was up 22.0% on a year-over-year basis. Broadcom has set its Q4 2025 guidance at EPS. Research analysts expect that Broadcom Inc. will post 5.38 earnings per share for the current year.

Broadcom Dividend Announcement

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

Institutional Trading of Broadcom

Institutional investors and hedge funds have recently bought and sold shares of the stock. Norges Bank purchased a new position in Broadcom during the 2nd quarter valued at about $18,579,549,000. Nuveen LLC purchased a new position in Broadcom during the 1st quarter valued at about $6,649,117,000. Price T Rowe Associates Inc. MD grew its stake in Broadcom by 37.8% during the 1st 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 in the last quarter. GAMMA Investing LLC grew its stake in Broadcom by 18,179.3% during the 1st quarter. GAMMA Investing LLC now owns 17,276,164 shares of the semiconductor manufacturer's stock valued at $2,892,548,000 after acquiring an additional 17,181,652 shares in the last quarter. Finally, Vanguard Group Inc. grew its stake in Broadcom by 1.3% during the 2nd quarter. Vanguard Group Inc. now owns 483,442,939 shares of the semiconductor manufacturer's stock valued at $133,261,046,000 after acquiring an additional 6,222,802 shares in the last quarter. Institutional investors and hedge funds own 76.43% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on the stock. KeyCorp lifted their price objective on shares of Broadcom from $330.00 to $400.00 and gave the stock an "overweight" rating in a report on Friday, September 5th. Evercore ISI reaffirmed an "outperform" rating and issued a $342.00 price objective (up previously from $304.00) on shares of Broadcom in a report on Thursday, September 4th. Rosenblatt Securities lifted their price objective on shares of Broadcom from $340.00 to $400.00 and gave the stock a "buy" rating in a report on Friday, September 5th. Argus lifted their price objective on shares of Broadcom from $285.00 to $375.00 and gave the stock a "buy" rating in a report on Monday. Finally, Citigroup boosted their price target on shares of Broadcom from $315.00 to $350.00 and gave the company a "buy" rating in a report on Friday, September 5th. Three investment analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Buy" and an average target price of $354.04.

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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