Arrowstreet Capital Limited Partnership Acquires 2,959,397 Shares of Broadcom Inc. $AVGO

Arrowstreet Capital Limited Partnership lifted its holdings in Broadcom Inc. (NASDAQ:AVGO) by 52.5% during the 4th quarter, according to its most recent disclosure with the SEC. The institutional investor owned 8,593,629 shares of the semiconductor manufacturer’s stock after acquiring an additional 2,959,397 shares during the period. Broadcom makes up approximately 1.7% of Arrowstreet Capital Limited Partnership’s investment portfolio, making the stock its 5th largest position. Arrowstreet Capital Limited Partnership owned about 0.18% of Broadcom worth $2,974,255,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also modified their holdings of the business. Apriem Advisors grew its stake in shares of Broadcom by 4.0% in the fourth quarter. Apriem Advisors now owns 14,644 shares of the semiconductor manufacturer’s stock valued at $5,068,000 after acquiring an additional 567 shares in the last quarter. Arete Wealth Advisors LLC grew its stake in shares of Broadcom by 5.0% in the fourth quarter. Arete Wealth Advisors LLC now owns 42,162 shares of the semiconductor manufacturer’s stock valued at $14,593,000 after acquiring an additional 1,998 shares in the last quarter. Jacobi Capital Management LLC grew its stake in shares of Broadcom by 3.1% in the fourth quarter. Jacobi Capital Management LLC now owns 13,892 shares of the semiconductor manufacturer’s stock valued at $4,808,000 after acquiring an additional 418 shares in the last quarter. Cordoba Advisory Partners LLC acquired a new position in shares of Broadcom in the fourth quarter valued at about $352,000. Finally, Burton Enright Welch acquired a new position in shares of Broadcom in the fourth quarter valued at about $3,871,000. 76.43% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on the stock. JPMorgan Chase & Co. increased their price objective on shares of Broadcom from $500.00 to $580.00 and gave the stock an “overweight” rating in a research note on Thursday, June 4th. Seaport Research Partners reiterated a “neutral” rating on shares of Broadcom in a research note on Wednesday, April 8th. Susquehanna reiterated a “positive” rating and set a $490.00 price objective (up from $450.00) on shares of Broadcom in a research note on Thursday, May 28th. Bank of America increased their price objective on shares of Broadcom from $450.00 to $530.00 and gave the stock a “buy” rating in a research note on Thursday, June 4th. Finally, UBS Group set a $485.00 price objective on shares of Broadcom and gave the stock a “buy” rating in a research note on Thursday, June 4th. One analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat, Broadcom currently has an average rating of “Moderate Buy” and a consensus price target of $490.13.

Broadcom Trading Down 0.9%

Shares of Broadcom stock opened at $382.07 on Friday. The company has a market capitalization of $1.82 trillion, a price-to-earnings ratio of 63.68, a PEG ratio of 0.67 and a beta of 1.41. 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 12-month low of $244.17 and a 12-month high of $495.00. The firm’s 50-day moving average price is $404.26 and its two-hundred day moving average price is $363.33.

Broadcom (NASDAQ:AVGO) last posted its earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, topping analysts’ consensus estimates of $2.40 by $0.04. The firm had revenue of $22.19 billion during the quarter, compared to analysts’ expectations of $22.13 billion. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The business’s revenue for the quarter was up 47.9% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.58 earnings per share. On average, analysts forecast that Broadcom Inc. will post 10.24 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Monday, June 22nd will be issued a $0.65 dividend. The ex-dividend date of this dividend is 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 43.33%.

Insider Activity at Broadcom

In other news, CFO Kirsten M. Spears sold 36,292 shares of the stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $321.60, for a total value of $11,671,507.20. Following the completion of the transaction, the chief financial officer owned 327,760 shares of the company’s stock, valued at approximately $105,407,616. This represents a 9.97% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Charlie B. Kawwas sold 39,116 shares of the stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $321.61, for a total transaction 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 trade represents a 34.39% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 324,282 shares of company stock worth $106,425,249 over the last three months. 1.90% of the stock is owned by insiders.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s quarterly results were very strong, with revenue up 48% to a record $22.2 billion, semiconductor revenue up 79%, AI semiconductor revenue up 143% to $10.8 billion, and more than $30 billion in AI bookings, suggesting demand remains robust. Article Title
• Positive Sentiment: Several analysts and commentators argue the recent drop could be a buying opportunity, saying Broadcom remains a core infrastructure winner in AI and that Wall Street’s long-term outlook is still constructive. Article Title
• Positive Sentiment: Fresh coverage highlighted Broadcom as one of the stocks with catalysts heading into the second half of the year, and some analysts have raised earnings forecasts and price targets despite the selloff. Article Title
• Neutral Sentiment: Jim Cramer said Broadcom’s earnings were “not good” and suggested tech stocks are harder to trust as leadership names, reflecting a more cautious market mood around the stock. Article Title
• Neutral Sentiment: Broadcom also announced cash tender offers for certain outstanding debt securities, a routine balance-sheet move that is unlikely to move the stock by itself. Article Title
• Negative Sentiment: Market commentary says the stock is being punished because investors are nitpicking Broadcom’s AI outlook and pricing the shares as if growth must keep accelerating without any hiccups. Article Title
• Negative Sentiment: One note warned that Broadcom told investors to expect gross profit margins to continue falling, reinforcing concerns that profitability may soften even as revenue grows. Article Title

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.