Sunbelt Securities Inc. grew its stake in Broadcom Inc. (NASDAQ:AVGO – Free Report) by 1.9% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 82,762 shares of the semiconductor manufacturer’s stock after purchasing an additional 1,504 shares during the period. Broadcom comprises approximately 1.6% of Sunbelt Securities Inc.’s investment portfolio, making the stock its 5th largest holding. Sunbelt Securities Inc.’s holdings in Broadcom were worth $25,616,000 at the end of the most recent reporting period.
A number of other hedge funds and other institutional investors have also made changes to their positions in AVGO. Norges Bank purchased a new stake in Broadcom during the fourth quarter worth $24,252,196,000. Cardano Risk Management B.V. increased its holdings in Broadcom by 895.2% in the fourth quarter. Cardano Risk Management B.V. now owns 12,689,800 shares of the semiconductor manufacturer’s stock valued at $4,391,940,000 after buying an additional 11,414,701 shares in the last quarter. Arrowstreet Capital Limited Partnership increased its holdings in Broadcom by 118.1% in the first quarter. Arrowstreet Capital Limited Partnership now owns 18,739,006 shares of the semiconductor manufacturer’s stock valued at $5,799,889,000 after buying an additional 10,145,377 shares in the last quarter. State Street Corp increased its holdings in Broadcom by 2.7% in the fourth quarter. State Street Corp now owns 190,084,351 shares of the semiconductor manufacturer’s stock valued at $65,788,194,000 after buying an additional 5,040,801 shares in the last quarter. Finally, Vanguard Group Inc. raised its position in shares of Broadcom by 0.8% in the fourth quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer’s stock worth $167,064,997,000 after acquiring an additional 3,919,715 shares during the period. Institutional investors and hedge funds own 76.43% of the company’s stock.
Analysts Set New Price Targets
Several equities research analysts have recently issued reports on the stock. Wells Fargo & Company reissued an “overweight” rating and set a $545.00 target price (up from $430.00) on shares of Broadcom in a research note on Thursday, May 14th. KeyCorp restated an “overweight” rating and issued a $575.00 price target (up from $500.00) on shares of Broadcom in a research note on Thursday, June 4th. Truist Financial upped their price target on Broadcom from $545.00 to $550.00 and gave the stock a “buy” rating in a report on Thursday, June 4th. Erste Group Bank reiterated a “hold” rating on shares of Broadcom in a research report on Tuesday, July 7th. Finally, Susquehanna reissued 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. Twenty-eight investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. According to MarketBeat, Broadcom has an average rating of “Moderate Buy” and a consensus target price of $493.24.
Broadcom Stock Down 2.8%
Shares of NASDAQ AVGO opened at $370.32 on Thursday. The firm has a market cap of $1.76 trillion, a price-to-earnings ratio of 61.72, a price-to-earnings-growth ratio of 0.73 and a beta of 1.45. The company’s 50-day simple moving average is $395.11 and its 200-day simple moving average is $367.66. The company has a quick ratio of 2.01, a current ratio of 2.24 and a debt-to-equity ratio of 0.71. Broadcom Inc. has a 52-week low of $281.61 and a 52-week high of $495.00.
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 for the quarter, topping the consensus estimate of $2.40 by $0.04. The firm had revenue of $22.19 billion during the quarter, compared to the consensus estimate of $22.13 billion. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The company’s revenue for the quarter was up 47.9% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.58 EPS. Equities analysts predict that Broadcom Inc. will post 10.24 EPS for the current fiscal year.
Broadcom Dividend Announcement
The company also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Monday, June 22nd were issued a dividend of $0.65 per share. 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 dividend payout ratio is presently 43.33%.
Insider Transactions at Broadcom
In other news, Director Harry L. You bought 1,000 shares of the firm’s stock in a transaction dated Thursday, June 11th. The shares were acquired at an average price of $373.57 per share, for a total transaction of $373,570.00. Following the completion of the transaction, the director directly owned 38,466 shares in the company, valued at $14,369,743.62. The trade was a 2.67% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Justine Page sold 1,602 shares of the business’s stock in a transaction that occurred on Monday, June 29th. The stock was sold at an average price of $373.86, for a total value of $598,923.72. Following the sale, the director owned 17,426 shares of the company’s stock, valued at $6,514,884.36. The trade was a 8.42% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 61,644 shares of company stock worth $24,016,214. 1.90% of the stock is owned by insiders.
Key Headlines Impacting Broadcom
Here are the key news stories impacting Broadcom this week:
- Positive Sentiment: Broadcom reportedly signed a five-year, $200 billion agreement with Samsung covering memory chips, including high-bandwidth memory (HBM), and potentially advanced packaging. The deal could help solve a key constraint for Broadcom’s AI accelerators by securing critical memory supply and supporting long-term growth. Broadcom Just Signed a $200 Billion AI Agreement
- Positive Sentiment: Analysts and investors remain optimistic that Broadcom’s custom AI-chip business and relationships with hyperscale cloud providers can continue benefiting from infrastructure spending. Some valuation analysis indicates AVGO may be below estimated fair value based on discounted cash flow and earnings multiples despite its strong long-term appreciation. Is Broadcom Stock Below Fair Value After Its AI Deals?
- Neutral Sentiment: The Samsung agreement highlights both the scale of AI demand and the industry’s rising costs. While guaranteed memory access may support revenue, the size of the commitment could pressure margins, capital requirements, and returns if AI demand or customer orders weaken. Broadcom’s $200 Billion Samsung Deal
- Negative Sentiment: Chip stocks have continued to pull back amid fears that AI-related valuations and capital spending expectations have become excessive, creating a broader headwind for AVGO. Chip Stocks Extend Pullback Amid AI Bubble Fears
- Negative Sentiment: One analyst raised concerns about AI “backstop” arrangements involving Broadcom and Nvidia, warning that these structures could leave the companies with additional liabilities if customers do not meet expected commitments. AI Backstop Concerns
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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