Atlas Wealth LLC Takes $33.05 Million Position in Broadcom Inc. $AVGO

Key Points

• Atlas Wealth LLC initiated a new position in Broadcom, buying 106,767 shares worth about $33.05 million. The stake makes Broadcom Atlas Wealth’s 7th largest holding and about 4.1% of its portfolio.
• Broadcom reported better-than-expected quarterly results, with EPS of $2.44 versus $2.40 expected and revenue of $22.19 billion, up 47.9% year over year. Analysts still forecast strong full-year earnings of $10.24 per share.
• The stock has continued to attract bullish analyst support, with several firms raising or reiterating buy ratings and an average target price of $493.24. At the same time, insider selling and broader semiconductor sector weakness remain watchpoints.

Atlas Wealth LLC bought a new position in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor bought 106,767 shares of the semiconductor manufacturer's stock, valued at approximately $33,045,000. Broadcom accounts for about 4.1% of Atlas Wealth LLC's holdings, making the stock its 7th largest holding.

A number of other hedge funds and other institutional investors have also recently made changes to their positions in the stock. Frontier Asset Management LLC acquired a new position in Broadcom in the 1st quarter valued at about $208,000. Future Fund LLC purchased a new stake in Broadcom during the 1st quarter valued at approximately $2,860,000. Aire Advisors LLC lifted its position in Broadcom by 80.6% during the 1st quarter. Aire Advisors LLC now owns 1,876 shares of the semiconductor manufacturer's stock worth $581,000 after acquiring an additional 837 shares during the period. Kera Capital Partners Inc. lifted its position in Broadcom by 0.5% during the 1st quarter. Kera Capital Partners Inc. now owns 24,357 shares of the semiconductor manufacturer's stock worth $7,539,000 after acquiring an additional 128 shares during the period. Finally, Cornerstone Planning Group LLC lifted its position in Broadcom by 13.7% during the 1st quarter. Cornerstone Planning Group LLC now owns 2,935 shares of the semiconductor manufacturer's stock worth $908,000 after acquiring an additional 353 shares during the period. Hedge funds and other institutional investors own 76.43% of the company's stock.

Broadcom Trading Up 2.0%

NASDAQ:AVGO opened at $378.16 on Tuesday. Broadcom Inc. has a 52-week low of $273.00 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 stock has a fifty day simple moving average of $400.28 and a 200-day simple moving average of $365.62. The company has a market capitalization of $1.80 trillion, a PE ratio of 63.03, a price-to-earnings-growth ratio of 0.65 and a beta of 1.45.

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, beating analysts' consensus estimates of $2.40 by $0.04. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The firm had revenue of $22.19 billion for the quarter, compared to analysts' expectations of $22.13 billion. During the same period in the prior year, the company earned $1.58 EPS. The firm's revenue was up 47.9% on a year-over-year basis. On average, equities research analysts expect that Broadcom Inc. will post 10.24 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Monday, June 22nd were given a $0.65 dividend. The ex-dividend date was 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. Bank of America boosted their target price on Broadcom from $450.00 to $530.00 and gave the company a "buy" rating in a report on Thursday, June 4th. Weiss Ratings raised Broadcom from a "buy (b-)" rating to a "buy (b)" rating in a report on Wednesday, July 15th. Rosenblatt Securities reiterated a "buy" rating and issued a $500.00 price objective on shares of Broadcom in a research report on Thursday, June 4th. The Goldman Sachs Group reissued a "buy" rating and issued a $525.00 price objective on shares of Broadcom in a research note on Thursday, June 4th. Finally, Morgan Stanley set a $502.00 price objective on shares of Broadcom and gave the stock an "overweight" rating in a research report on Thursday, June 4th. One research analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, Broadcom presently has an average rating of "Moderate Buy" and an average target price of $493.24.

Insider Buying and Selling at Broadcom

In related news, Director Justine Page sold 1,602 shares of the company's stock in a transaction that occurred on Monday, June 29th. The stock was sold at an average price of $373.86, for a total value of $598,923.72. Following the sale, the director owned 17,426 shares of the company's stock, valued at approximately $6,514,884.36. This represents a 8.42% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Gayla J. Delly sold 1,890 shares of the stock in a transaction on Wednesday, July 8th. The shares were sold at an average price of $385.38, for a total value of $728,368.20. Following the sale, the director owned 31,326 shares in the company, valued at approximately $12,072,413.88. This trade represents a 5.69% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 61,644 shares of company stock valued at $24,016,214. Company insiders own 1.90% of the company's stock.

Trending Headlines about Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Morgan Stanley said Broadcom remains one of its preferred ways to play the AI infrastructure buildout, calling AVGO an attractive risk-reward name after the recent semiconductor pullback. Broadcom stock gains 2% today: here's why
• Positive Sentiment: Analysts and market commentary highlighted Broadcom as a high-cash-flow AI chip stock that could benefit as investors look for quality names amid market volatility. 4 High Cash-Producing AI Chip Stocks to Buy Amid Market Uncertainties
• Positive Sentiment: Broadcom’s AI business is being viewed as a key driver of the investment case, with reports noting strong AI chip revenue growth and a larger shift toward AI-related mix. AMD vs. Broadcom: The Better AI-Chip Stock to Buy After the Sell-Off
• Positive Sentiment: Broadcom also announced a major infrastructure software deal with Standard Chartered to modernize banking cloud operations across 54 markets, which supports its VMware-based software revenue stream. Broadcom (AVGO) Lands Standard Chartered Deal To Power Banking Cloud In 54 Markets
• Neutral Sentiment: Broadcom was included in broader “buy the dip” chip-sector commentary as investors looked for value after the recent memory and AI semiconductor sell-off. The Memory Stock Sell-Off Created a ‘Strong Entry Point,' Says Morgan Stanley. Investors Are Buying In.
• Negative Sentiment: Recent articles also noted that semiconductor stocks had fallen into a bear market after a sharp index decline, reflecting ongoing sectorwide pressure that could cap gains for AVGO. Semiconductor stocks enter bear market: Is bubble burst next?

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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