1ST Source Bank Sells 2,165 Shares of Broadcom Inc. $AVGO

Key Points

• 1ST Source Bank trimmed its Broadcom stake by 7.1% in the fourth quarter, selling 2,165 shares and leaving it with 28,174 shares valued at about $9.75 million.
• Broadcom remains heavily owned by institutions, with investors such as Vanguard and Arrowstreet increasing positions; overall, institutional ownership stands at 76.43%.
• Recent company and analyst updates were largely positive: Broadcom posted strong quarterly results, paid a dividend, and several Wall Street firms raised or reiterated bullish price targets, though insiders have also sold shares and the stock’s valuation remains elevated.

1ST Source Bank reduced its stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 7.1% during the 4th quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 28,174 shares of the semiconductor manufacturer's stock after selling 2,165 shares during the quarter. Broadcom accounts for 0.5% of 1ST Source Bank's holdings, making the stock its 27th biggest holding. 1ST Source Bank's holdings in Broadcom were worth $9,751,000 as of its most recent filing with the SEC.

Several other institutional investors and hedge funds have also bought and sold shares of the company. Arrowstreet Capital Limited Partnership boosted its position in shares of Broadcom by 499.4% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 5,634,232 shares of the semiconductor manufacturer's stock worth $1,858,789,000 after acquiring an additional 4,694,313 shares in the last quarter. Vanguard Group Inc. raised its position in Broadcom by 0.8% during the fourth quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer's stock valued at $167,064,997,000 after purchasing an additional 3,919,715 shares in the last quarter. Nordea Investment Management AB lifted its stake in Broadcom by 47.5% during the fourth quarter. Nordea Investment Management AB now owns 9,814,757 shares of the semiconductor manufacturer's stock worth $3,406,211,000 after purchasing an additional 3,160,586 shares during the last quarter. Danske Bank A S bought a new stake in shares of Broadcom during the 3rd quarter worth $987,488,000. Finally, PFA Pension Forsikringsaktieselskab bought a new position in Broadcom in the fourth quarter valued at about $924,858,000. Institutional investors own 76.43% of the company's stock.

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 transaction of $11,671,507.20. Following the transaction, the chief financial officer owned 327,760 shares of the company's stock, valued at $105,407,616. This represents a 9.97% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider S. Ram Velaga sold 38,841 shares of the firm's stock in a transaction dated 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 sale, the insider owned 96,147 shares of the company's stock, valued at approximately $30,920,875.20. This represents a 28.77% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have 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 currently owned by company insiders.

Broadcom News Roundup

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom deepened its relationship with the London Stock Exchange Group (LSEG) through a new five-year agreement centered on VMware Cloud Foundation, which should support recurring software revenue and highlights demand for Broadcom’s enterprise cloud and infrastructure products. Article Title
• Positive Sentiment: Applied Materials named Broadcom as an EPIC Innovation Partner, signaling collaboration on advanced packaging technologies that are critical for next-generation AI chips and systems. That reinforces Broadcom’s position as a key supplier in the AI infrastructure buildout. Article Title
• Positive Sentiment: Wall Street continues to view Broadcom favorably, with multiple recent analyst price targets raised or reiterated at bullish levels. Investors are still focusing on Broadcom’s AI exposure and custom chip momentum. Article Title
• Neutral Sentiment: A Zacks screen highlighted Broadcom as a high-ROE “cash cow” alongside other stocks that may hold up better during a tech slump. This is more of a relative-strength mention than a new company-specific catalyst. Article Title
• Neutral Sentiment: Another Zacks item discussed whether brokers’ opinions matter for Broadcom, but it did not add a clear new upgrade, downgrade, or earnings surprise. Article Title
• Neutral Sentiment: Broader market articles noted a selloff in major tech stocks and the Magnificent 7, which can weigh on AVGO sentiment even when company-specific news remains positive. Article Title
• Negative Sentiment: One Seeking Alpha piece argued that Broadcom’s AI visibility has improved, but the valuation multiple has not expanded as much as expected, suggesting some investor caution after the stock’s strong run. Article Title

Broadcom Stock Performance

AVGO stock opened at $417.76 on Thursday. The firm has a market cap of $1.98 trillion, a PE ratio of 81.59, a price-to-earnings-growth ratio of 0.85 and a beta of 1.43. The company has a current ratio of 1.90, a quick ratio of 1.73 and a debt-to-equity ratio of 0.80. The stock has a 50-day moving average price of $370.41 and a 200-day moving average price of $355.37. Broadcom Inc. has a 1-year low of $226.18 and a 1-year high of $442.36.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 EPS for the quarter, beating the consensus estimate of $2.03 by $0.02. Broadcom had a return on equity of 38.61% and a net margin of 36.57%.The company had revenue of $19.31 billion for the quarter, compared to analyst estimates of $19.10 billion. During the same quarter in the prior year, the company earned $1.60 EPS. The firm's revenue for the quarter was up 29.5% compared to the same quarter last year. As a group, equities research analysts expect that Broadcom Inc. will post 9.97 earnings per share for the current year.

Broadcom Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Investors of record on Monday, March 23rd were paid a dividend of $0.65 per share. The ex-dividend date of this dividend was Monday, March 23rd. This represents a $2.60 annualized dividend and a yield of 0.6%. Broadcom's dividend payout ratio is currently 50.78%.

Analyst Ratings Changes

A number of research firms have recently weighed in on AVGO. Weiss Ratings downgraded shares of Broadcom from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday, April 24th. Wells Fargo & Company reissued an "overweight" rating and set a $545.00 price objective (up from $430.00) on shares of Broadcom in a report on Thursday, May 14th. TD Cowen reiterated a "buy" rating and issued a $500.00 target price (up from $405.00) on shares of Broadcom in a research report on Friday, May 15th. Bank of America cut their price target on Broadcom from $500.00 to $450.00 and set a "buy" rating on the stock in a research note on Thursday, March 5th. Finally, Royal Bank Of Canada dropped their price objective on shares of Broadcom from $370.00 to $340.00 and set a "sector perform" rating for the company in a report on Monday, March 2nd. Two research analysts have rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and four have issued a Hold rating to the company's stock. According to data from MarketBeat.com, Broadcom presently has an average rating of "Moderate Buy" and a consensus price target of $448.10.

Broadcom 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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