Aubrey Capital Management Ltd Sells 2,200 Shares of Broadcom Inc. $AVGO

Key Points

• Aubrey Capital Management trimmed its Broadcom stake by 12.6% in the fourth quarter, selling 2,200 shares and leaving it with 15,300 shares worth about $5.3 million. Broadcom still ranks as the fund’s 12th-largest holding.
• Broadcom’s fundamentals remain strong: the company reported quarterly EPS of $2.05, ahead of estimates, on revenue of $19.31 billion, up 29.5% year over year. Analysts expect continued growth, with the market now pricing Broadcom as a $2.01 trillion company.
• Wall Street remains broadly bullish on AVGO, with several firms raising price targets to as high as $545, though some caution that the stock is becoming a crowded AI trade. The shares also pay a quarterly dividend of $0.65, or $2.60 annually, for a 0.6% yield.

Aubrey Capital Management Ltd reduced its stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 12.6% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 15,300 shares of the semiconductor manufacturer's stock after selling 2,200 shares during the period. Broadcom accounts for approximately 2.1% of Aubrey Capital Management Ltd's portfolio, making the stock its 12th biggest holding. Aubrey Capital Management Ltd's holdings in Broadcom were worth $5,295,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors also recently made changes to their positions in the business. Vanguard Group Inc. grew its position in shares of Broadcom by 0.8% in the fourth quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer's stock valued at $167,064,997,000 after purchasing an additional 3,919,715 shares during the last quarter. Invesco Ltd. grew its position in shares of Broadcom by 1.8% in the third quarter. Invesco Ltd. now owns 39,149,651 shares of the semiconductor manufacturer's stock valued at $12,915,861,000 after purchasing an additional 700,021 shares during the last quarter. Legal & General Group Plc grew its position in shares of Broadcom by 2.3% in the third quarter. Legal & General Group Plc now owns 33,450,786 shares of the semiconductor manufacturer's stock valued at $11,035,749,000 after purchasing an additional 748,709 shares during the last quarter. Franklin Resources Inc. grew its position in shares of Broadcom by 4.0% in the third quarter. Franklin Resources Inc. now owns 29,511,195 shares of the semiconductor manufacturer's stock valued at $9,736,038,000 after purchasing an additional 1,124,590 shares during the last quarter. Finally, Amundi grew its position in shares of Broadcom by 3.3% in the third quarter. Amundi now owns 22,216,816 shares of the semiconductor manufacturer's stock valued at $7,453,320,000 after purchasing an additional 716,523 shares during the last quarter. 76.43% of the stock is owned by institutional investors and hedge funds.

Broadcom Stock Down 3.3%

AVGO stock opened at $425.19 on Friday. Broadcom Inc. has a twelve month low of $221.60 and a twelve month high of $442.36. The company has a market cap of $2.01 trillion, a PE ratio of 83.05, a price-to-earnings-growth ratio of 0.88 and a beta of 1.43. The business's 50-day simple moving average is $365.61 and its 200 day simple moving average is $354.62. 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 (NASDAQ:AVGO - Get Free Report) last released its earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share for the quarter, topping analysts' consensus estimates of $2.03 by $0.02. Broadcom had a return on equity of 38.61% and a net margin of 36.57%.The business had revenue of $19.31 billion for the quarter, compared to the consensus estimate of $19.10 billion. During the same period last year, the business earned $1.60 earnings per share. The firm's revenue for the quarter was up 29.5% compared to the same quarter last year. On average, research analysts anticipate that Broadcom Inc. will post 9.95 earnings per share for the current year.

Broadcom Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Investors of record on Monday, March 23rd were given a dividend of $0.65 per share. The ex-dividend date of this dividend was Monday, March 23rd. This represents a $2.60 dividend on an annualized basis and a yield of 0.6%. Broadcom's dividend payout ratio (DPR) is 50.78%.

Trending Headlines about Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom remains a favored way to play AI infrastructure, with multiple recent articles highlighting its growing exposure to custom AI silicon, data-center networking, and AI semiconductor revenue. Citi also raised its price target to $500, reinforcing optimism ahead of the next earnings report.
• Positive Sentiment: Wells Fargo lifted its price target to $545 and said AI semiconductor revenue is running 30% to 40% above expectations, suggesting Broadcom may still be benefiting from stronger-than-expected hyperscaler spending.
• Positive Sentiment: Recent investor interest has also been supportive, with hedge fund and prominent manager buying cited in several notes, alongside Broadcom being named among top tech stocks to own as AI optimism continues to drive the market.
• Neutral Sentiment: Broadcom was also mentioned in a broader AI rotation piece that argues the next leg of the rally may be in AI bottlenecks such as optics, networking, and memory rather than only the most obvious chip winners. Broadcom was specifically named as one of the companies positioned to benefit from optical interconnect demand.
• Negative Sentiment: UBS warned that AI stocks, including Broadcom, are increasingly crowded trades, raising the risk of a pullback if enthusiasm cools or if investors rotate out of mega-cap semiconductors.
• Negative Sentiment: Some commentary also suggests the AI chip rally may be masking broader market weakness, which can make even strong names like Broadcom vulnerable to profit-taking after a powerful advance.

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on AVGO shares. Wells Fargo & Company reaffirmed an "overweight" rating and issued a $545.00 price target (up from $430.00) on shares of Broadcom in a research report on Thursday. Benchmark reaffirmed a "buy" rating and issued a $485.00 price target on shares of Broadcom in a research report on Thursday, March 5th. TD Cowen reaffirmed a "buy" rating and issued a $500.00 price target (up from $405.00) on shares of Broadcom in a research report on Friday. Royal Bank Of Canada lowered their price target on Broadcom from $370.00 to $340.00 and set a "sector perform" rating on the stock in a research report on Monday, March 2nd. Finally, Citigroup reaffirmed a "buy" rating and issued a $500.00 price target (up from $475.00) on shares of Broadcom in a research report on Tuesday. Two investment analysts have rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $441.63.

Insider Buying and Selling at Broadcom

In related news, insider S. Ram Velaga sold 8,000 shares of Broadcom stock in a transaction dated Friday, April 10th. The stock was sold at an average price of $370.52, for a total transaction of $2,964,160.00. Following the sale, the insider directly owned 57,932 shares of the company's stock, valued at $21,464,964.64. This trade represents a 12.13% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Justine Page sold 2,018 shares of Broadcom stock in a transaction that occurred 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 sale, the director directly owned 18,164 shares in the company, valued at $6,411,892. The trade was a 10.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 324,282 shares of company stock valued at $106,425,249 over the last quarter. Company insiders own 1.90% of the company's stock.

About Broadcom

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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