Balentine LLC Acquires 1,370 Shares of Broadcom Inc. $AVGO

Key Points

• Balentine LLC increased its Broadcom stake by 27.5% in the fourth quarter, buying 1,370 additional shares and bringing its total holdings to 6,351 shares valued at about $2.2 million.
• Broadcom continues to attract major institutional investment, with firms like Vanguard, Arrowstreet, and Nordea adding to positions; overall, institutional investors own 76.43% of the stock.
• Broadcom faces mixed near-term signals: shares were pressured by reports of financing issues around an OpenAI custom chip deal, even as the company posted strong quarterly results and analysts maintain a “Moderate Buy” consensus.

Balentine LLC boosted its holdings in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 27.5% in the 4th quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 6,351 shares of the semiconductor manufacturer's stock after purchasing an additional 1,370 shares during the period. Balentine LLC's holdings in Broadcom were worth $2,198,000 at the end of the most recent reporting period.

Several other hedge funds have also added to or reduced their stakes in AVGO. Arrowstreet Capital Limited Partnership lifted its stake in Broadcom by 499.4% in the third quarter. Arrowstreet Capital Limited Partnership now owns 5,634,232 shares of the semiconductor manufacturer's stock worth $1,858,789,000 after purchasing an additional 4,694,313 shares during the last quarter. Vanguard Group Inc. increased 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 acquiring an additional 3,919,715 shares during the period. Nordea Investment Management AB increased its position in shares of Broadcom by 47.5% in the fourth quarter. Nordea Investment Management AB now owns 9,814,757 shares of the semiconductor manufacturer's stock valued at $3,406,211,000 after acquiring an additional 3,160,586 shares during the period. Danske Bank A S purchased a new position in shares of Broadcom in the third quarter valued at about $987,488,000. Finally, PFA Pension Forsikringsaktieselskab purchased a new position in shares of Broadcom in the fourth quarter valued at about $924,858,000. 76.43% of the stock is owned by institutional investors.

Trending Headlines about Broadcom

Here are the key news stories impacting Broadcom this week:

• Negative Sentiment: Broadcom shares are under pressure after reports said OpenAI’s planned $18 billion custom chip deal with the company hit a financing roadblock, creating uncertainty around a key AI revenue driver. Broadcom shares slump as OpenAI’s $18B custom chip deal hits financing snag
• Negative Sentiment: Another report framed the OpenAI issue as a major setback for Broadcom’s custom AI chip ambitions, adding concern that one of its flagship customer relationships may not be as immediately monetizable as investors hoped. Broadcom's OpenAI mega AI deal hits $18 billion wall
• Neutral Sentiment: Broadcom also announced VMware by Broadcom VCF 9.1, a product update aimed at accelerating production AI workloads in private clouds, which supports the company’s long-term enterprise AI strategy. Broadcom (AVGO) Launches VCF 9.1 to Accelerate Production AI in Private Clouds
• Neutral Sentiment: Several commentary pieces remained constructive on Broadcom’s position in the AI infrastructure stack, noting that recent hyperscaler results still support demand for chips and networking tied to AI buildouts. Big Tech earnings support Broadcom’s outlook
• Neutral Sentiment: Broadcom was also mentioned in a public-sector VMware partnership update, which could help broaden enterprise distribution but is not likely the main driver of the stock today. evoila U.S. and Carahsoft Partner to Deliver VMware by Broadcom Services to the Public Sector

Insiders Place Their Bets

In other Broadcom news, insider Mark David Brazeal sold 50,488 shares of the company's stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $321.60, for a total value of $16,236,940.80. Following the sale, the insider owned 278,141 shares in the company, valued at approximately $89,450,145.60. This represents a 15.36% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Gayla J. Delly sold 1,000 shares of the company's stock in a transaction dated Thursday, April 9th. The stock was sold at an average price of $358.31, for a total transaction of $358,310.00. Following the completion of the sale, the director owned 32,352 shares in the company, valued at approximately $11,592,045.12. This trade represents a 3.00% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 324,282 shares of company stock valued at $106,425,249. Insiders own 1.90% of the company's stock.

Broadcom Price Performance

AVGO stock opened at $430.00 on Friday. Broadcom Inc. has a 1 year low of $206.52 and a 1 year high of $437.68. The company has a market cap of $2.04 trillion, a P/E ratio of 83.98, a PEG ratio of 0.89 and a beta of 1.43. The firm has a 50-day moving average of $352.89 and a 200 day moving average of $351.28. The company has a debt-to-equity ratio of 0.80, a current ratio of 1.90 and a quick ratio of 1.73.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its quarterly earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.03 by $0.02. The company had revenue of $19.31 billion during the quarter, compared to the consensus estimate of $19.10 billion. Broadcom had a net margin of 36.57% and a return on equity of 38.61%. Broadcom's revenue was up 29.5% on a year-over-year basis. During the same period in the prior year, the firm earned $1.60 earnings per share. On average, sell-side analysts forecast that Broadcom Inc. will post 9.95 EPS for the current year.

Broadcom Dividend Announcement

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

Analyst Ratings Changes

A number of equities analysts have issued reports on the stock. Zacks Research upgraded shares of Broadcom from a "hold" rating to a "strong-buy" rating in a research report on Thursday, April 2nd. Citigroup boosted their price objective on shares of Broadcom from $458.00 to $475.00 and gave the company a "buy" rating in a research report on Thursday, March 5th. Weiss Ratings cut shares of Broadcom from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, April 24th. DA Davidson upgraded shares of Broadcom to a "hold" rating in a research report on Friday, February 13th. Finally, Wells Fargo & Company upgraded shares of Broadcom from an "equal weight" rating to an "overweight" rating and boosted their price objective for the company from $410.00 to $430.00 in a research report on Thursday, January 15th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat, Broadcom presently has an average rating of "Moderate Buy" and an average price target of $435.30.

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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