Broadcom Inc. $AVGO Shares Acquired by Cibc World Market Inc.

Key Points

• CIBC World Market Inc. increased its Broadcom stake by 18.2% in the fourth quarter, buying an additional 303,943 shares and bringing its position to nearly 1.98 million shares valued at about $684.7 million.
• Broadcom reported strong quarterly results, with EPS of $2.44 beating estimates and revenue of $22.19 billion up 47.9% year over year, while management said AI semiconductor demand remains robust.
• Despite the strong earnings, the stock has come under pressure because investors wanted an even bigger AI outlook, though analysts largely remain bullish with several raising price targets and a consensus Moderate Buy rating.

Cibc World Market Inc. lifted its holdings in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 18.2% in the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 1,978,430 shares of the semiconductor manufacturer's stock after buying an additional 303,943 shares during the period. Broadcom makes up about 1.1% of Cibc World Market Inc.'s investment portfolio, making the stock its 17th largest holding. Cibc World Market Inc.'s holdings in Broadcom were worth $684,735,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also made changes to their positions in the business. Brown Brothers Harriman & Co. lifted its position in Broadcom by 10.7% during the 3rd quarter. Brown Brothers Harriman & Co. now owns 77,411 shares of the semiconductor manufacturer's stock worth $25,539,000 after buying an additional 7,499 shares in the last quarter. Dana Investment Advisors Inc. lifted its position in Broadcom by 2.6% during the 3rd quarter. Dana Investment Advisors Inc. now owns 173,759 shares of the semiconductor manufacturer's stock worth $57,325,000 after buying an additional 4,442 shares in the last quarter. Guinness Atkinson Asset Management Inc lifted its position in Broadcom by 248.2% during the 3rd quarter. Guinness Atkinson Asset Management Inc now owns 26,238 shares of the semiconductor manufacturer's stock worth $8,603,000 after buying an additional 18,703 shares in the last quarter. Sovran Advisors LLC lifted its position in Broadcom by 121.3% during the 4th quarter. Sovran Advisors LLC now owns 30,631 shares of the semiconductor manufacturer's stock worth $10,507,000 after buying an additional 16,789 shares in the last quarter. Finally, Thurston Springer Miller Herd & Titak Inc. lifted its position in Broadcom by 406.1% during the 4th quarter. Thurston Springer Miller Herd & Titak Inc. now owns 11,994 shares of the semiconductor manufacturer's stock worth $4,151,000 after buying an additional 9,624 shares in the last quarter. 76.43% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom posted record quarterly revenue, beat earnings estimates, and said AI semiconductor demand remains strong, supporting the long-term growth story. Broadcom Q2 Earnings Surpasses Estimates, Revenues Surge Y/Y
• Positive Sentiment: Several analysts remain bullish and raised price targets after the pullback, arguing the market is overreacting to expectations rather than fundamentals. Goldman Sachs urges investors to buy Broadcom dip with still AI revenue trajectory intact
• Positive Sentiment: Management still expects AI revenue to reach $56 billion in fiscal 2026 and more than $100 billion in fiscal 2027, keeping the longer-term AI thesis intact. AVGO Shares Drop 13% Post Q2 Results: Buy, Sell or Hold on the Dip?
• Neutral Sentiment: Broadcom also declared a quarterly dividend, which is supportive for income investors but not a major near-term stock driver.
• Negative Sentiment: The stock is under pressure because the AI outlook, while strong, was not upgraded enough to satisfy investors who had priced in an even bigger upside surprise. Broadcom's sales and AI chip forecast comes in below expectations, shares tumble
• Negative Sentiment: The disappointment has spilled over into the semiconductor sector, pressuring peers such as AMD, Intel, Micron, and Marvell as investors reassess AI trade valuations. Intel, AMD stocks slide again in aftermath of Broadcom's weak outlook

Insider Activity at Broadcom

In related news, insider S. Ram Velaga sold 38,841 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 $12,491,265.60. Following the transaction, the insider owned 96,147 shares in the company, valued at approximately $30,920,875.20. This represents a 28.77% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, 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 transaction of $16,236,940.80. Following the completion of the transaction, the insider owned 278,141 shares in the company, valued at approximately $89,450,145.60. This trade represents a 15.36% 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 quarter. Corporate insiders own 1.90% of the company's stock.

Analyst Ratings Changes

Several equities research analysts have commented on the stock. UBS Group set a $485.00 price target on shares of Broadcom and gave the stock a "buy" rating in a research report on Thursday. Wells Fargo & Company reissued an "overweight" rating and set a $545.00 price target (up from $430.00) on shares of Broadcom in a research report on Thursday, May 14th. Oppenheimer reissued an "outperform" rating and set a $535.00 price target (up from $450.00) on shares of Broadcom in a research report on Thursday. Morgan Stanley set a $502.00 target price on shares of Broadcom and gave the company an "overweight" rating in a report on Thursday. Finally, Zacks Research cut shares of Broadcom from a "strong-buy" rating to a "hold" rating in a report on Thursday, May 21st. One research analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat, Broadcom presently has a consensus rating of "Moderate Buy" and a consensus target price of $490.13.

Broadcom Price Performance

Shares of AVGO opened at $385.73 on Monday. Broadcom Inc. has a 52 week low of $241.11 and a 52 week high of $495.00. The firm has a market cap of $1.83 trillion, a P/E ratio of 64.29, a price-to-earnings-growth ratio of 0.70 and a beta of 1.41. The firm's 50-day simple moving average is $396.22 and its 200 day simple moving average is $362.04. The company has a debt-to-equity ratio of 0.71, a quick ratio of 2.01 and a current ratio of 2.24.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its quarterly earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, beating analysts' consensus estimates of $2.40 by $0.04. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The business had revenue of $22.19 billion for the quarter, compared to analyst estimates of $22.13 billion. During the same quarter in the prior year, the business earned $1.58 EPS. Broadcom's quarterly revenue was up 47.9% on a year-over-year basis. On average, analysts forecast that Broadcom Inc. will post 9.97 earnings per share for the current year.

Broadcom Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 22nd will be paid a $0.65 dividend. The ex-dividend date is Monday, June 22nd. This represents a $2.60 dividend on an annualized basis and a yield of 0.7%. Broadcom's dividend payout ratio is 43.33%.

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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