Alight Capital Management LP Sells 30,000 Shares of Broadcom Inc. $AVGO

Key Points

• Alight Capital Management cut its Broadcom stake by 75% in the fourth quarter, selling 30,000 shares and leaving it with 10,000 shares worth about $3.46 million.
• Broadcom’s fundamentals remain strong: it reported quarterly EPS of $2.44, above estimates, on revenue of $22.19 billion, up 47.9% year over year.
• Analysts remain broadly bullish, with several firms raising price targets and Broadcom carrying a consensus rating of “Moderate Buy” with an average target of $490.13, despite some mixed commentary on margins and valuation.

Alight Capital Management LP lessened its stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 75.0% during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 10,000 shares of the semiconductor manufacturer's stock after selling 30,000 shares during the period. Alight Capital Management LP's holdings in Broadcom were worth $3,461,000 as of its most recent SEC filing.

A number of other institutional investors have also recently made changes to their positions in the stock. Baring Financial LLC grew its position in shares of Broadcom by 2.2% in the 4th quarter. Baring Financial LLC now owns 1,359 shares of the semiconductor manufacturer's stock valued at $470,000 after buying an additional 29 shares during the last quarter. Five Oceans Advisors grew its position in shares of Broadcom by 0.4% in the 4th quarter. Five Oceans Advisors now owns 8,191 shares of the semiconductor manufacturer's stock valued at $2,835,000 after buying an additional 29 shares during the last quarter. Planning Alternatives Ltd. ADV grew its position in shares of Broadcom by 1.4% in the 3rd quarter. Planning Alternatives Ltd. ADV now owns 2,168 shares of the semiconductor manufacturer's stock valued at $715,000 after buying an additional 30 shares during the last quarter. Bell Investment Advisors Inc grew its position in shares of Broadcom by 1.9% in the 3rd quarter. Bell Investment Advisors Inc now owns 1,638 shares of the semiconductor manufacturer's stock valued at $540,000 after buying an additional 30 shares during the last quarter. Finally, Bare Financial Services Inc grew its position in shares of Broadcom by 11.6% in the 3rd quarter. Bare Financial Services Inc now owns 299 shares of the semiconductor manufacturer's stock valued at $99,000 after buying an additional 31 shares during the last quarter. Institutional investors own 76.43% of the company's stock.

Insider Buying and Selling

In other news, insider Charlie B. Kawwas sold 10,000 shares of the company's stock in a transaction that occurred on Wednesday, April 8th. The stock was sold at an average price of $345.23, for a total value of $3,452,300.00. Following the completion of the transaction, the insider directly owned 787,184 shares of the company's stock, valued at $271,759,532.32. This represents a 1.25% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Justine Page sold 2,018 shares of the stock in a transaction on Wednesday, April 8th. The shares were sold at an average price of $353.00, for a total value of $712,354.00. Following the transaction, the director directly owned 18,164 shares of the company's stock, valued at approximately $6,411,892. This trade represents a 10.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 51,233 shares of company stock valued at $18,125,134 over the last quarter. Corporate insiders own 1.90% of the company's stock.

Broadcom News Summary

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: JPMorgan reiterated a bullish stance on Broadcom, saying the market may be underestimating its long-term AI opportunity and calling the shares attractive at current levels. Barrons article
• Positive Sentiment: Other coverage highlighted Broadcom’s “massive AI pipeline” and the company’s growing role in AI infrastructure, reinforcing expectations for multi-year revenue growth. Benzinga article
• Positive Sentiment: Broadcom announced pricing terms for cash tender offers to repurchase portions of its outstanding debt, a move that can support balance-sheet management and financial flexibility. PR Newswire article
• Neutral Sentiment: Commentary on Broadcom’s latest quarter noted strong AI-chip demand and revenue growth, but also pointed to gross margin pressure and cautious guidance, which may be keeping some investors from getting more aggressive. Zacks article
• Negative Sentiment: Some broader AI-stock commentary has compared today’s AI capex boom to the dot-com era, renewing valuation and cycle-risk concerns across the sector that could weigh on sentiment for AVGO. 247WallSt article

Broadcom Stock Up 4.3%

AVGO stock opened at $392.90 on Thursday. The stock's 50 day simple moving average is $408.66 and its 200 day simple moving average is $363.11. Broadcom Inc. has a fifty-two week low of $244.17 and a fifty-two week high of $495.00. The company has a debt-to-equity ratio of 0.71, a quick ratio of 2.01 and a current ratio of 2.24. The company has a market cap of $1.87 trillion, a P/E ratio of 65.48, a price-to-earnings-growth ratio of 0.66 and a beta of 1.41.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its quarterly earnings data on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS 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 return on equity of 41.61% and a net margin of 38.85%.The company's quarterly revenue was up 47.9% compared to the same quarter last year. During the same period in the prior year, the business posted $1.58 earnings per share. On average, research analysts expect that Broadcom Inc. will post 10.24 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The firm 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 annualized dividend and a dividend yield of 0.7%. Broadcom's dividend payout ratio is currently 43.33%.

Analyst Ratings Changes

A number of research analysts have recently issued reports on AVGO shares. Zacks Research downgraded Broadcom from a "strong-buy" rating to a "hold" rating in a research note on Thursday, May 21st. Royal Bank Of Canada boosted their price objective on Broadcom from $360.00 to $400.00 and gave the company a "sector perform" rating in a research note on Thursday, June 4th. KeyCorp reissued an "overweight" rating and issued a $575.00 price objective (up from $500.00) on shares of Broadcom in a research note on Thursday, June 4th. JPMorgan Chase & Co. boosted their price objective on Broadcom from $500.00 to $580.00 and gave the company an "overweight" rating in a research note on Thursday, June 4th. Finally, Deutsche Bank Aktiengesellschaft reissued a "buy" rating and issued a $515.00 price objective (up from $430.00) on shares of Broadcom in a research note on Thursday, June 4th. One research analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $490.13.

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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