Broadcom Inc. $AVGO Shares Bought by Hodges Capital Management Inc.

Key Points

• Hodges Capital Management increased its Broadcom stake by 25.4% in the first quarter, buying 6,015 additional shares and bringing its total to 29,739 shares valued at about $9.2 million.
• Broadcom continues to attract strong institutional and analyst support, with institutional investors owning 76.43% of the stock and Wall Street assigning an overall “Moderate Buy” rating with a consensus price target of $493.24.
• The company posted solid results, beating quarterly EPS and revenue estimates, while also benefiting from upbeat news such as Apple’s multiyear $30 billion chip deal and continued optimism around Broadcom’s AI chip growth.

Hodges Capital Management Inc. raised its stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 25.4% in the 1st quarter, according to its most recent filing with the SEC. The fund owned 29,739 shares of the semiconductor manufacturer's stock after purchasing an additional 6,015 shares during the period. Hodges Capital Management Inc.'s holdings in Broadcom were worth $9,204,000 as of its most recent SEC filing.

A number of other institutional investors have also modified their holdings of the stock. ROSS JOHNSON & Associates LLC grew its position in shares of Broadcom by 1,320.0% in the 4th quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer's stock worth $25,000 after acquiring an additional 66 shares in the last quarter. SWAN Capital LLC raised its position in shares of Broadcom by 261.9% during the 4th quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer's stock valued at $26,000 after acquiring an additional 55 shares in the last quarter. Networth Advisors LLC lifted its stake in Broadcom by 546.2% during the first quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer's stock worth $26,000 after purchasing an additional 71 shares during the last quarter. Miller Global Investments LLC bought a new position in Broadcom during the fourth quarter worth $31,000. Finally, Nvest Wealth Strategies Inc. acquired a new position in Broadcom in the fourth quarter worth $33,000. Institutional investors and hedge funds own 76.43% of the company's stock.

Analysts Set New Price Targets

A number of brokerages have weighed in on AVGO. Seaport Research Partners reissued a "neutral" rating on shares of Broadcom in a report on Wednesday, April 8th. Zacks Research lowered shares of Broadcom from a "strong-buy" rating to a "hold" rating in a report on Thursday, May 21st. Citigroup reaffirmed a "buy" rating on shares of Broadcom in a research report on Thursday, June 4th. The Goldman Sachs Group reissued a "buy" rating and issued a $525.00 target price on shares of Broadcom in a report on Thursday, June 4th. Finally, Evercore restated an "outperform" rating and issued a $582.00 target price on shares of Broadcom in a research note on Tuesday, May 19th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat, Broadcom presently has an average rating of "Moderate Buy" and a consensus target price of $493.24.

Broadcom Trading Up 3.2%

Shares of NASDAQ:AVGO opened at $401.11 on Friday. The company has a quick ratio of 2.01, a current ratio of 2.24 and a debt-to-equity ratio of 0.71. The company's 50-day moving average price is $405.40 and its 200 day moving average price is $363.87. The company has a market cap of $1.91 trillion, a PE ratio of 66.85, a P/E/G ratio of 0.68 and a beta of 1.45. Broadcom Inc. has a fifty-two week low of $269.58 and a fifty-two week high of $495.00.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, topping the consensus estimate of $2.40 by $0.04. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The firm had revenue of $22.19 billion during the quarter, compared to analysts' expectations of $22.13 billion. During the same quarter in the prior year, the firm earned $1.58 EPS. Broadcom's quarterly revenue was up 47.9% on a year-over-year basis. Sell-side analysts anticipate that Broadcom Inc. will post 10.24 earnings per share for the current year.

Broadcom Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Monday, June 22nd were given a dividend of $0.65 per share. The ex-dividend date was Monday, June 22nd. This represents a $2.60 annualized dividend and a dividend yield of 0.6%. Broadcom's payout ratio is currently 43.33%.

Key Stories Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Apple’s multiyear agreement to buy more than $30 billion of Broadcom chips through 2031 reinforces demand for Broadcom’s custom silicon and U.S. manufacturing strategy. Reuters: Apple to spend $30 billion in Broadcom chips deal that will see Colorado factory expand
• Positive Sentiment: Wall Street remains upbeat on Broadcom’s AI chip momentum, with Jefferies reiterating a Buy rating and a $550 price target on improving AI-related growth prospects. Broadcom’s (AVGO) AI Chip Momentum Keeps Wall Street Bullish
• Positive Sentiment: Broader semiconductor sentiment improved as the AI trade rebounded, with analysts and market commentators viewing the recent selloff as a buying opportunity for chip stocks like Broadcom. Broadcom, Intel, Corning, Marvell, and More Stocks That Explain Today's Market
• Neutral Sentiment: Zacks highlighted Broadcom as a dividend-paying AI infrastructure name, underscoring its mix of income and AI exposure, but this was more of a stock-picking view than a new company-specific catalyst. These Dividend Paying Stocks Offer Strong Exposure to AI Trends
• Negative Sentiment: Erste Group downgraded Broadcom to Hold, citing valuation concerns, which may temper some of the enthusiasm after the recent rally. Erste Group downgrades Broadcom to Hold citing valuation concerns

Insider Buying and Selling

In other Broadcom news, Director Harry L. You purchased 1,000 shares of Broadcom stock in a transaction on Thursday, June 11th. The stock was bought at an average price of $373.57 per share, for a total transaction of $373,570.00. Following the transaction, the director owned 38,466 shares of the company's stock, valued at $14,369,743.62. The trade was a 2.67% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Mark David Brazeal sold 4,825 shares of the stock in a transaction on Wednesday, June 17th. The stock was sold at an average price of $394.91, for a total value of $1,905,440.75. Following the completion of the transaction, the insider directly owned 269,989 shares of the company's stock, valued at approximately $106,621,355.99. The trade was a 1.76% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 9,754 shares of company stock valued at $3,774,846 in the last three months. 1.90% of the stock is currently owned by corporate insiders.

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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