Broadcom Inc. $AVGO Holdings Trimmed by Heritage Financial Services LLC

Key Points

• Heritage Financial Services LLC cut its Broadcom stake by 26.6% in the fourth quarter, selling 2,191 shares and ending with 6,035 shares valued at about $2.09 million.
• Broadcom shares were pressured by reports of a financing snag in OpenAI’s planned $18 billion custom chip deal, raising concerns about a key AI revenue opportunity.
• The company still showed strong fundamentals, with quarterly revenue of $19.31 billion and EPS of $2.05 beating expectations, while analysts currently rate the stock a “Moderate Buy” on average.

Heritage Financial Services LLC lowered its position in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 26.6% in the 4th quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 6,035 shares of the semiconductor manufacturer's stock after selling 2,191 shares during the quarter. Broadcom accounts for approximately 0.2% of Heritage Financial Services LLC's investment portfolio, making the stock its 26th largest position. Heritage Financial Services LLC's holdings in Broadcom were worth $2,089,000 at the end of the most recent quarter.

Other large investors have also bought and sold shares of the company. JCIC Asset Management Inc. acquired a new position in shares of Broadcom in the 3rd quarter valued at $31,000. Miller Global Investments LLC acquired a new position in shares of Broadcom in the 4th quarter valued at $31,000. Nvest Wealth Strategies Inc. acquired a new position in shares of Broadcom in the 4th quarter valued at $33,000. Manning & Napier Advisors LLC acquired a new position in shares of Broadcom in the 3rd quarter valued at $34,000. Finally, Family CFO Inc acquired a new position in shares of Broadcom in the 4th quarter valued at $35,000. Institutional investors own 76.43% of the company's stock.

Key Headlines Impacting 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

Broadcom Price Performance

AVGO opened at $430.00 on Monday. Broadcom Inc. has a fifty-two week low of $206.52 and a fifty-two week high of $437.68. The business 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. The company has a market capitalization of $2.04 trillion, a PE ratio of 83.98, a price-to-earnings-growth ratio of 0.89 and a beta of 1.43.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its quarterly 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 company had revenue of $19.31 billion during the quarter, compared to the consensus estimate of $19.10 billion. During the same period last year, the business earned $1.60 EPS. The business's quarterly revenue was up 29.5% on a year-over-year basis. Equities research analysts forecast that Broadcom Inc. will post 9.95 EPS for the current fiscal year.

Broadcom Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Monday, March 23rd were paid 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 dividend yield of 0.6%. Broadcom's dividend payout ratio (DPR) is 50.78%.

Insider Activity at Broadcom

In other news, Director Justine Page sold 2,018 shares of the firm's stock in a transaction dated Wednesday, April 8th. The stock was sold at an average price of $353.00, for a total transaction of $712,354.00. Following the completion of the sale, the director directly owned 18,164 shares of the company's stock, valued at $6,411,892. This trade represents a 10.00% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Mark David Brazeal sold 50,488 shares of the firm's stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $321.60, for a total value of $16,236,940.80. Following the sale, the insider directly owned 278,141 shares of the company's stock, valued at $89,450,145.60. This trade represents a 15.36% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 324,282 shares of company stock worth $106,425,249. 1.90% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on AVGO shares. Weiss Ratings lowered Broadcom from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, April 24th. Morgan Stanley increased their price target on Broadcom from $462.00 to $470.00 and gave the company an "overweight" rating in a research report on Friday, March 6th. Wells Fargo & Company upgraded Broadcom from an "equal weight" rating to an "overweight" rating and increased their price target for the company from $410.00 to $430.00 in a research report on Thursday, January 15th. DA Davidson upgraded Broadcom to a "hold" rating in a research report on Friday, February 13th. Finally, JPMorgan Chase & Co. increased their price target on Broadcom from $475.00 to $500.00 and gave the company an "overweight" rating in a research report on Thursday, March 5th. 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 data from MarketBeat.com, Broadcom currently has an average rating of "Moderate Buy" and a consensus target price of $435.30.

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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