AMI Asset Management Corp Trims Stake in Broadcom Inc. $AVGO

Key Points

• AMI Asset Management reduced its Broadcom stake by 2.8% in the second quarter, selling 7,134 shares and retaining 243,566 shares valued at approximately $92 million. Broadcom remains its fourth-largest holding and represents about 5.3% of its portfolio.
• Broadcom reported quarterly revenue of $22.19 billion and EPS of $2.44, exceeding analyst expectations, while revenue increased 47.9% year over year. Analysts maintain a “Moderate Buy” consensus with an average price target of $493.24.
• Institutional investors own 76.43% of Broadcom, and the company’s custom-chip, XPU and AI-infrastructure opportunities remain key long-term growth catalysts. Broadcom also pays a quarterly dividend of $0.65, equivalent to a 0.7% annual yield.

AMI Asset Management Corp lessened its holdings in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 2.8% in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 243,566 shares of the semiconductor manufacturer's stock after selling 7,134 shares during the quarter. Broadcom makes up about 5.3% of AMI Asset Management Corp's investment portfolio, making the stock its 4th largest holding. AMI Asset Management Corp's holdings in Broadcom were worth $92,007,000 as of its most recent SEC filing.

Other institutional investors have also recently added to or reduced their stakes in the company. Fullerton Advisors LLC grew its position in shares of Broadcom by 1.3% during the 1st quarter. Fullerton Advisors LLC now owns 1,989 shares of the semiconductor manufacturer's stock valued at $616,000 after buying an additional 25 shares during the last quarter. NORTHSTAR ASSET MANAGEMENT Co boosted its stake in Broadcom by 0.5% in the first quarter. NORTHSTAR ASSET MANAGEMENT Co now owns 5,350 shares of the semiconductor manufacturer's stock valued at $1,656,000 after acquiring an additional 25 shares during the period. RFG Holdings Inc. grew its holdings in shares of Broadcom by 0.3% during the first quarter. RFG Holdings Inc. now owns 8,499 shares of the semiconductor manufacturer's stock valued at $2,631,000 after purchasing an additional 26 shares during the last quarter. Yukon Wealth Management Inc. grew its holdings in shares of Broadcom by 1.1% during the first quarter. Yukon Wealth Management Inc. now owns 2,501 shares of the semiconductor manufacturer's stock valued at $774,000 after purchasing an additional 26 shares during the last quarter. Finally, NerdWallet Wealth Partners LLC raised its position in shares of Broadcom by 2.6% during the 2nd quarter. NerdWallet Wealth Partners LLC now owns 1,057 shares of the semiconductor manufacturer's stock worth $399,000 after purchasing an additional 27 shares during the period. Institutional investors own 76.43% of the company's stock.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s custom-silicon and XPU opportunity remains a key long-term catalyst. Analysts and commentators point to accelerating AI infrastructure spending, major customer agreements, and potential growth in custom chips and networking. Broadcom: XPU Growth Trajectory Underestimated, Stock A Bargain
• Positive Sentiment: Wall Street’s average price target implies substantial upside from recent trading levels, supporting the bullish view that the market may be underestimating Broadcom’s AI growth trajectory. Broadcom is Down Over 3 Months: One Wall Street Pro Sees 60%+ Gains Ahead
• Positive Sentiment: Continued institutional interest, including purchases by GAMCO Investors and Cathie Wood’s reported investment, provides some additional support for the stock’s long-term AI investment case. Cathie Wood buys $16.2 million of Broadcom

Analyst Ratings Changes

Several brokerages recently issued reports on AVGO. DA Davidson raised their price target on Broadcom from $375.00 to $400.00 and gave the stock a "neutral" rating in a report on Thursday, June 4th. Weiss Ratings downgraded Broadcom from a "buy (b)" rating to a "buy (b-)" rating in a research note on Thursday, July 30th. JPMorgan Chase & Co. increased their target price on Broadcom from $500.00 to $580.00 and gave the stock an "overweight" rating in a research report on Thursday, June 4th. Wells Fargo & Company reiterated an "overweight" rating and issued a $545.00 target price (up from $430.00) on shares of Broadcom in a research note on Thursday, May 14th. Finally, KeyCorp reissued an "overweight" rating and set a $575.00 price target (up from $500.00) on shares of Broadcom in a report on Thursday, June 4th. Twenty-eight equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $493.24.

Insiders Place Their Bets

In related news, insider Mark David Brazeal sold 25,000 shares of the company's stock in a transaction dated Friday, July 10th. The shares were sold at an average price of $401.33, for a total value of $10,033,250.00. Following the completion of the sale, the insider owned 194,989 shares of the company's stock, valued at $78,254,935.37. This represents a 11.36% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Harry L. You bought 1,000 shares of the firm's stock in a transaction that occurred on Thursday, June 11th. The stock was bought at an average price of $373.57 per share, with a total value of $373,570.00. Following the transaction, the director directly owned 38,466 shares in the company, valued at $14,369,743.62. This represents a 2.67% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last ninety days, insiders sold 61,644 shares of company stock worth $24,016,214. 1.90% of the stock is owned by company insiders.

Broadcom Stock Performance

Shares of NASDAQ AVGO opened at $393.05 on Monday. Broadcom Inc. has a 12-month low of $281.87 and a 12-month high of $495.00. The company has a market cap of $1.87 trillion, a PE ratio of 65.51, a P/E/G ratio of 0.75 and a beta of 1.45. The stock has a 50 day simple moving average of $389.79 and a 200-day simple moving average of $373.64. The company has a current ratio of 2.24, a quick ratio of 2.01 and a debt-to-equity ratio of 0.71.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, beating the consensus estimate of $2.40 by $0.04. The firm had revenue of $22.19 billion for the quarter, compared to analysts' expectations of $22.13 billion. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.The firm's revenue was up 47.9% compared to the same quarter last year. During the same period last year, the firm earned $1.58 EPS. On average, equities research analysts forecast that Broadcom Inc. will post 10.24 EPS for the current year.

Broadcom Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Monday, June 22nd were paid a $0.65 dividend. The ex-dividend date of this dividend was Monday, June 22nd. This represents a $2.60 annualized dividend and a dividend yield of 0.7%. Broadcom's dividend payout ratio is presently 43.33%.

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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