Arsenal Capital Advisors LLC Acquires New Shares in Broadcom Inc. $AVGO

Key Points

• Arsenal Capital Advisors opened a new position in Broadcom during the fourth quarter, buying 11,117 shares valued at about $3.85 million. Broadcom now makes up roughly 2.7% of the firm’s portfolio and is its 7th largest holding.
• Broadcom’s latest quarterly results beat expectations, with EPS of $2.44 and revenue of $22.19 billion, while sales jumped 47.9% year over year. The company also announced a quarterly dividend of $0.65 per share, payable June 30.
• Analysts remain constructive on AVGO, with several firms raising price targets and ratings, including Mizuho and Truist Financial. MarketBeat reports a consensus rating of Moderate Buy and an average price target of $490.13.

Arsenal Capital Advisors LLC acquired a new position in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) in the 4th quarter, according to its most recent 13F filing with the SEC. The fund acquired 11,117 shares of the semiconductor manufacturer's stock, valued at approximately $3,848,000. Broadcom comprises about 2.7% of Arsenal Capital Advisors LLC's investment portfolio, making the stock its 7th largest holding.

Several other hedge funds also recently bought and sold shares of AVGO. Miller Global Investments LLC purchased a new stake in shares of Broadcom in the fourth quarter valued at $31,000. Nvest Wealth Strategies Inc. purchased a new stake in Broadcom in the 4th quarter valued at about $33,000. Family CFO Inc purchased a new stake in Broadcom in the 4th quarter valued at about $35,000. PayPay Securities Corp increased its position in Broadcom by 88.9% during the fourth quarter. PayPay Securities Corp now owns 119 shares of the semiconductor manufacturer's stock worth $41,000 after purchasing an additional 56 shares during the last quarter. Finally, Cherry Tree Wealth Management LLC increased its holdings in shares of Broadcom by 44.9% during the 4th quarter. Cherry Tree Wealth Management LLC now owns 129 shares of the semiconductor manufacturer's stock worth $45,000 after buying an additional 40 shares during the last quarter. Hedge funds and other institutional investors own 76.43% of the company's stock.

Broadcom News Summary

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom announced expanded security investments for the Spring and Java ecosystem, aiming to help enterprise customers defend against AI-enabled threats and reinforcing its software strategy. Broadcom Expands Its Investment in Spring and Java Ecosystem Security to Prepare Customers for AI-Enabled Threats
• Positive Sentiment: Several analysts and market commentators said the recent post-earnings decline may be exaggerated, arguing that Broadcom’s strong revenue growth and AI momentum still support the long-term story. Jim Cramer on Broadcom: “The Disappointing Earnings May Not Be as Crushing as We Think”
• Positive Sentiment: Wall Street sentiment remains constructive, with Bank of America raising its price target on Broadcom to $530 from $450 while keeping a Buy rating after the latest quarterly results and guidance. Is Broadcom (AVGO) the Best Stock in Chase Coleman’s Tiger Global?

Analyst Ratings Changes

Several equities research analysts have issued reports on the stock. Mizuho boosted their price objective on shares of Broadcom from $480.00 to $530.00 and gave the stock an "outperform" rating in a research note on Thursday, June 4th. Wall Street Zen upgraded shares of Broadcom from a "hold" rating to a "buy" rating in a report on Sunday. Weiss Ratings raised shares of Broadcom from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Wednesday, May 27th. Zacks Research downgraded Broadcom from a "strong-buy" rating to a "hold" rating in a report on Thursday, May 21st. Finally, Truist Financial raised their price objective on Broadcom from $545.00 to $550.00 and gave the company a "buy" rating in a research report on Thursday, June 4th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $490.13.

Insider Buying and Selling at Broadcom

In other news, insider Charlie B. Kawwas sold 39,116 shares of Broadcom stock in a transaction that occurred on 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 sale, the insider owned 74,626 shares of the company's stock, valued at approximately $24,000,467.86. The trade was a 34.39% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CFO Kirsten M. Spears sold 36,292 shares of the firm's stock in a transaction that occurred on 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 sale, the chief financial officer owned 327,760 shares in the company, valued at approximately $105,407,616. This represents a 9.97% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 324,282 shares of company stock worth $106,425,249. Insiders own 1.90% of the company's stock.

Broadcom Stock Performance

Shares of AVGO opened at $396.60 on Tuesday. Broadcom Inc. has a 52-week low of $241.11 and a 52-week high of $495.00. The company has a quick ratio of 2.01, a current ratio of 2.24 and a debt-to-equity ratio of 0.71. The firm has a market cap of $1.88 trillion, a price-to-earnings ratio of 66.10, a PEG ratio of 0.70 and a beta of 1.41. The business's 50 day moving average is $397.96 and its two-hundred day moving average is $362.43.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its earnings results 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 company had revenue of $22.19 billion during the quarter, compared to analyst estimates of $22.13 billion. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.The business's revenue was up 47.9% on a year-over-year basis. During the same quarter last year, the firm earned $1.58 EPS. Analysts forecast that Broadcom Inc. will post 9.97 EPS for the current fiscal year.

Broadcom Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 22nd will be paid a dividend of $0.65 per share. The ex-dividend date is Monday, June 22nd. This represents a $2.60 annualized dividend and a yield of 0.7%. Broadcom's dividend payout ratio is 43.33%.

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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