Broadcom Inc. $AVGO Position Lowered by Meritage Portfolio Management

Key Points

• Meritage Portfolio Management trimmed its stake in Broadcom (AVGO) by 2.8% in Q4, selling 5,541 shares and leaving 195,333 shares worth about $67.6 million, which represents 4.5% of the fund and its fourth‑largest holding.
• Broadcom reported a Q quarter EPS of $2.05 (beat by $0.02) and revenue of $19.31 billion (up 29.5% year‑over‑year), while the company carries a market cap around $1.89 trillion and strong profitability metrics (net margin 36.57%, ROE 38.61%).
• Analysts remain broadly bullish on AVGO, with a consensus rating of "Moderate Buy," an average 12‑month target of $435.30, and the majority of coverage assigning Buy or Strong Buy ratings.

Meritage Portfolio Management cut its position in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 2.8% during the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 195,333 shares of the semiconductor manufacturer's stock after selling 5,541 shares during the period. Broadcom accounts for 4.5% of Meritage Portfolio Management's investment portfolio, making the stock its 4th largest holding. Meritage Portfolio Management's holdings in Broadcom were worth $67,605,000 at the end of the most recent quarter.

A number of other large investors also recently modified their holdings of the company. Michael Brady & Co. LLC purchased a new stake in shares of Broadcom in the 4th quarter valued at approximately $431,000. SageGuard Financial Group LLC purchased a new stake in shares of Broadcom in the 4th quarter valued at approximately $1,799,000. Jones Kertz & Associates Inc. purchased a new stake in shares of Broadcom in the 4th quarter valued at approximately $16,365,000. Round Rock Advisors LLC increased its position in shares of Broadcom by 3.1% in the 4th quarter. Round Rock Advisors LLC now owns 1,809 shares of the semiconductor manufacturer's stock valued at $626,000 after purchasing an additional 54 shares during the last quarter. Finally, Evergreen Capital Management LLC increased its position in shares of Broadcom by 30.9% in the 4th quarter. Evergreen Capital Management LLC now owns 86,403 shares of the semiconductor manufacturer's stock valued at $29,904,000 after purchasing an additional 20,381 shares during the last quarter. 76.43% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

AVGO has been the topic of a number of recent analyst reports. The Goldman Sachs Group reissued a "buy" rating and issued a $450.00 price objective on shares of Broadcom in a research report on Monday, January 5th. Zacks Research raised shares of Broadcom from a "hold" rating to a "strong-buy" rating in a research report on Thursday, April 2nd. Rosenblatt Securities reissued a "buy" rating and issued a $500.00 price objective on shares of Broadcom in a research report on Tuesday, April 7th. Royal Bank Of Canada dropped their price objective on shares of 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, Erste Group Bank downgraded shares of Broadcom from a "buy" rating to a "hold" rating in a research report on Thursday, April 2nd. Two analysts have rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $435.30.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Big partner momentum — Broadcom’s rally has been bolstered by partnership/news flow (notably Google’s new AI chip roadmap) that helped push the stock to record market‑cap levels, reinforcing the company’s custom AI-silicon narrative. Read More.
• Positive Sentiment: Strong analyst conviction — Street coverage is overwhelmingly bullish (most analysts rate AVGO a Buy and 12‑month targets imply double‑digit upside), which underpins longer‑term demand from institutions. Read More.
• Positive Sentiment: Upgraded price‑target narratives and bullish writeups are feeding momentum trades and ETF inflows into semiconductors, supporting AVGO’s valuation case amid strong revenue growth and expanding custom‑silicon sales. Read More.
• Neutral Sentiment: Semi/AI ETF dynamics are amplifying moves both ways — sector ETFs and momentum products have been heavy buyers recently, which can accelerate upside but also amplify volatility on headlines. Read More.
• Negative Sentiment: OpenAI miss spooked the AI infrastructure trade — reports that OpenAI missed internal user/revenue goals rattled hyperscaler capex expectations and triggered a sector pullback that pressured Broadcom along with other AI‑exposed chip names. Read More.
• Negative Sentiment: Broad sector weakness — broader declines in AI chip leaders (reported by Barron's) and short‑term technical/profit‑taking flows have pulled AVGO down despite the positive fundamentals. Read More.
• Negative Sentiment: Near‑term trading volatility: market‑timed pullbacks and headline risk are already reflected in recent intraday declines — watch quarterly cadence, hyperscaler order disclosures, and any update on customer concentration risk. Read More.

Broadcom Trading Down 4.4%

NASDAQ AVGO opened at $399.83 on Wednesday. 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 firm's fifty day moving average price is $344.25 and its 200 day moving average price is $348.93. The company has a market capitalization of $1.89 trillion, a price-to-earnings ratio of 78.09, a price-to-earnings-growth ratio of 0.86 and a beta of 1.24. Broadcom Inc. has a 12 month low of $184.02 and a 12 month high of $429.31.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 EPS for the quarter, beating analysts' consensus estimates of $2.03 by $0.02. The firm had revenue of $19.31 billion for 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%. The company's revenue was up 29.5% on a year-over-year basis. During the same period last year, the firm posted $1.60 EPS. On average, sell-side analysts expect that Broadcom Inc. will post 9.95 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Investors of record on Monday, March 23rd were given a $0.65 dividend. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend was Monday, March 23rd. Broadcom's dividend payout ratio (DPR) is 50.78%.

Insider Activity

In related news, insider Charlie B. Kawwas sold 10,000 shares of the stock in a transaction on Wednesday, April 8th. The shares were sold at an average price of $345.23, for a total transaction of $3,452,300.00. Following the completion of the sale, the insider owned 787,184 shares in the company, valued at $271,759,532.32. This represents a 1.25% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Mark David Brazeal sold 50,488 shares of the stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $321.60, for a total transaction of $16,236,940.80. Following the sale, the insider owned 278,141 shares of the company's stock, valued at approximately $89,450,145.60. This represents a 15.36% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 324,282 shares of company stock worth $106,425,249 over the last 90 days. 1.90% of the stock is owned by corporate insiders.

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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