Alta Capital Management LLC Has $65.94 Million Stake in Broadcom Inc. $AVGO

Key Points

• Alta Capital Management reduced its Broadcom stake by 14.8% in the fourth quarter, selling 33,073 shares. Even after the trim, the fund still held 190,523 shares worth about $65.94 million, making Broadcom its fifth-largest position.
• Broadcom continues to benefit from strong AI-related growth, with recent commentary noting that AI semiconductor revenue has more than doubled and that demand from hyperscale customers is driving better outlooks. Analysts also continue to view Broadcom as one of the stronger AI infrastructure plays.
• The company’s latest results were solid, with Q2 revenue and EPS beating expectations and revenue rising 29.5% year over year. Despite the strong fundamentals, some risk remains from a high valuation, “overcrowded” positioning concerns, and ongoing EU regulatory scrutiny.

Alta Capital Management LLC trimmed its stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 14.8% in the 4th quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 190,523 shares of the semiconductor manufacturer's stock after selling 33,073 shares during the period. Broadcom makes up about 4.4% of Alta Capital Management LLC's portfolio, making the stock its 5th biggest position. Alta Capital Management LLC's holdings in Broadcom were worth $65,940,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors have also modified their holdings of AVGO. JCIC Asset Management Inc. purchased a new position in shares of Broadcom in the 3rd quarter valued at $31,000. Miller Global Investments LLC purchased a new position in Broadcom during the 4th quarter worth $31,000. Nvest Wealth Strategies Inc. purchased a new position in Broadcom during the 4th quarter worth $33,000. Family CFO Inc purchased a new position in Broadcom during the 4th quarter worth $35,000. Finally, PayPay Securities Corp grew its stake in Broadcom by 88.9% during the 4th quarter. PayPay Securities Corp now owns 119 shares of the semiconductor manufacturer's stock worth $41,000 after buying an additional 56 shares during the last quarter. 76.43% of the stock is owned by institutional investors.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s AI semiconductor business is showing rapid growth, with AI revenue more than doubling and stronger Q2 expectations tied to hyperscale demand. Broadcom Rides on Accelerating Semiconductor Revenues: What's Ahead?
• Positive Sentiment: Analysts continue to highlight Broadcom as one of Goldman Sachs’ strongest AI infrastructure bets, reinforcing optimism around its role in AI chips and networking. Why Broadcom (AVGO) Remains One of Goldman’s Strongest AI Infrastructure Bets
• Positive Sentiment: Broadcom is expanding its AI ecosystem through a $125 million research and talent hub with Meta and UCLA, plus packaging work with Applied Materials, which could support long-term growth. Broadcom’s AI Research Push Links Chip Packaging Advances To Growth Story
• Positive Sentiment: Several articles and analyst notes point to strong long-term upside, with Broadcom repeatedly described as a durable AI winner and a solid growth stock. Is Broadcom Inc. (AVGO) a Solid Growth Stock? 3 Reasons to Think "Yes"
• Neutral Sentiment: Commentary about Broadcom’s stock price in 2030 reflects bullish long-term AI expectations, but it does not appear to be a near-term catalyst. This Will be Broadcom’s Stock Price In 2030
• Neutral Sentiment: Broader market commentary and inflation worries have also been mentioned, but these articles do not identify a Broadcom-specific problem. Inflation Fears Weighed on Broadcom (AVGO) in Q1
• Negative Sentiment: One recent note says Broadcom remains “overcrowded,” suggesting valuation or positioning risk after a strong rally. Broadcom Is Far Too Overcrowded
• Negative Sentiment: Broadcom has also faced some regulatory scrutiny in the EU, which could create headline risk even as AI sentiment stays positive. Broadcom Inc. (AVGO) Challenges EU Regulators While Barclays Sees AI Upside

Broadcom Stock Performance

Shares of AVGO stock opened at $414.14 on Friday. The stock has a market cap of $1.96 trillion, a PE ratio of 80.89, a price-to-earnings-growth ratio of 0.86 and a beta of 1.43. The business has a 50-day simple moving average of $373.30 and a 200-day simple moving average of $356.09. The company has a quick ratio of 1.73, a current ratio of 1.90 and a debt-to-equity ratio of 0.80. Broadcom Inc. has a 52-week low of $226.18 and a 52-week high of $442.36.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its quarterly earnings data on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.03 by $0.02. The business had revenue of $19.31 billion during the quarter, compared to analysts' expectations of $19.10 billion. Broadcom had a return on equity of 38.61% and a net margin of 36.57%.The company's revenue for the quarter was up 29.5% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.60 EPS. On average, equities analysts expect that Broadcom Inc. will post 9.91 EPS for the current year.

Broadcom Dividend Announcement

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

Analyst Ratings Changes

Several research analysts recently weighed in on the company. Citigroup restated a "buy" rating and set a $500.00 target price (up from $475.00) on shares of Broadcom in a research note on Tuesday, May 12th. Royal Bank Of Canada lowered their price target on Broadcom from $370.00 to $340.00 and set a "sector perform" rating for the company in a research report on Monday, March 2nd. JPMorgan Chase & Co. lifted their price target on Broadcom from $475.00 to $500.00 and gave the stock an "overweight" rating in a research report on Thursday, March 5th. Wolfe Research raised Broadcom from a "peer perform" rating to an "outperform" rating and set a $400.00 price target for the company in a research report on Friday, January 30th. Finally, DA Davidson raised Broadcom to a "hold" rating in a research report on Friday, February 13th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and five have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $448.10.

Insiders Place Their Bets

In related news, insider Mark David Brazeal sold 50,488 shares of the company's stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $321.60, for a total value of $16,236,940.80. Following the completion of the transaction, the insider owned 278,141 shares of the company's stock, valued at approximately $89,450,145.60. This represents a 15.36% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Kirsten M. Spears sold 36,292 shares of the company's stock in a transaction dated Tuesday, March 17th. The stock was 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 directly owned 327,760 shares of the company's stock, valued at $105,407,616. The trade was a 9.97% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 324,282 shares of company stock worth $106,425,249. 1.90% of the stock is owned by company insiders.

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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