Bessemer Group Inc. Reduces Stock Position in Broadcom Inc. $AVGO

Key Points

• Bessemer Group Inc. cut its Broadcom stake by 2.9% in the fourth quarter, but still held 5.37 million shares valued at about $1.86 billion, making AVGO its sixth-largest position.
• Broadcom reported a strong quarter, with EPS of $2.05 and revenue of $19.31 billion, both slightly above expectations; revenue also rose 29.5% year over year.
• Analyst sentiment remains positive, with several firms reiterating or raising ratings and an average target price of $448.10, while the stock traded near $417.76 and remains supported by broad institutional ownership.

Bessemer Group Inc. trimmed its position in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 2.9% during the 4th quarter, according to its most recent 13F filing with the SEC. The fund owned 5,369,083 shares of the semiconductor manufacturer's stock after selling 158,418 shares during the quarter. Broadcom comprises about 2.9% of Bessemer Group Inc.'s holdings, making the stock its 6th biggest holding. Bessemer Group Inc. owned 0.11% of Broadcom worth $1,858,239,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently made changes to their positions in the company. Vanguard Group Inc. raised its holdings in Broadcom by 0.8% in the 4th quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer's stock worth $167,064,997,000 after acquiring an additional 3,919,715 shares during the last quarter. Invesco Ltd. grew its stake 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 worth $12,915,861,000 after acquiring an additional 700,021 shares during the period. Legal & General Group Plc raised its holdings in shares of Broadcom by 2.3% during 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. raised its holdings in shares of Broadcom by 4.0% during 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 lifted its position in Broadcom by 3.3% during 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 period. Institutional investors own 76.43% of the company's stock.

Broadcom Price Performance

Shares of Broadcom stock opened at $417.76 on Thursday. The company has a market capitalization of $1.98 trillion, a price-to-earnings ratio of 81.59, a PEG ratio of 0.85 and a beta of 1.43. The company has a quick ratio of 1.73, a current ratio of 1.90 and a debt-to-equity ratio of 0.80. The stock's 50-day simple moving average is $370.41 and its 200-day simple moving average is $355.37. Broadcom Inc. has a 52 week low of $226.18 and a 52 week high of $442.36.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.03 by $0.02. Broadcom had a return on equity of 38.61% and a net margin of 36.57%.The company had revenue of $19.31 billion for the quarter, compared to the consensus estimate of $19.10 billion. During the same quarter last year, the company earned $1.60 EPS. The firm's quarterly revenue was up 29.5% on a year-over-year basis. As a group, analysts expect that Broadcom Inc. will post 9.97 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

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

Analysts Set New Price Targets

A number of research firms have commented on AVGO. Zacks Research raised shares of Broadcom from a "hold" rating to a "strong-buy" rating in a research report on Thursday, April 2nd. Seaport Research Partners reissued a "neutral" rating on shares of Broadcom in a report on Wednesday, April 8th. Mizuho reissued an "outperform" rating and issued a $480.00 target price on shares of Broadcom in a report on Thursday, April 16th. Citigroup reissued a "buy" rating and issued a $500.00 target price (up from $475.00) on shares of Broadcom in a research report on Tuesday, May 12th. Finally, Wolfe Research upgraded Broadcom from a "peer perform" rating to an "outperform" rating and set a $400.00 price target for the company in a research note on Friday, January 30th. Two analysts have rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $448.10.

Insider Activity at Broadcom

In other Broadcom news, CFO Kirsten M. Spears sold 36,292 shares of the stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $321.60, for a total transaction of $11,671,507.20. Following the completion of the transaction, the chief financial officer owned 327,760 shares of the company's stock, valued at $105,407,616. This represents a 9.97% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Charlie B. Kawwas sold 39,116 shares of the firm's stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $321.61, for a total value of $12,580,096.76. Following the transaction, 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 position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 324,282 shares of company stock worth $106,425,249 in the last three months. Insiders own 1.90% of the company's stock.

Key Stories Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom deepened its relationship with the London Stock Exchange Group (LSEG) through a new five-year agreement centered on VMware Cloud Foundation, which should support recurring software revenue and highlights demand for Broadcom’s enterprise cloud and infrastructure products. Article Title
• Positive Sentiment: Applied Materials named Broadcom as an EPIC Innovation Partner, signaling collaboration on advanced packaging technologies that are critical for next-generation AI chips and systems. That reinforces Broadcom’s position as a key supplier in the AI infrastructure buildout. Article Title
• Positive Sentiment: Wall Street continues to view Broadcom favorably, with multiple recent analyst price targets raised or reiterated at bullish levels. Investors are still focusing on Broadcom’s AI exposure and custom chip momentum. Article Title
• Neutral Sentiment: A Zacks screen highlighted Broadcom as a high-ROE “cash cow” alongside other stocks that may hold up better during a tech slump. This is more of a relative-strength mention than a new company-specific catalyst. Article Title
• Neutral Sentiment: Another Zacks item discussed whether brokers’ opinions matter for Broadcom, but it did not add a clear new upgrade, downgrade, or earnings surprise. Article Title
• Neutral Sentiment: Broader market articles noted a selloff in major tech stocks and the Magnificent 7, which can weigh on AVGO sentiment even when company-specific news remains positive. Article Title
• Negative Sentiment: One Seeking Alpha piece argued that Broadcom’s AI visibility has improved, but the valuation multiple has not expanded as much as expected, suggesting some investor caution after the stock’s strong run. Article Title

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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