Broadcom Inc. $AVGO Shares Bought by Quadrant Capital Group LLC

Key Points

• Quadrant Capital Group LLC increased its Broadcom stake by 3.0% in the fourth quarter, bringing its holdings to 129,718 shares worth about $44.9 million. Broadcom is now its 11th-largest position and makes up 1.4% of the portfolio.
• Broadcom recently reported strong quarterly results, with revenue up 47.9% to $22.19 billion and EPS of $2.44, beating estimates. AI semiconductor revenue surged 143% to $10.8 billion, and the company logged more than $30 billion in AI bookings.
• Despite the strong fundamentals, the stock has faced pressure as investors worry about valuation and margin trends. Analysts remain broadly positive overall, with multiple price targets raised and a consensus Moderate Buy rating, while Broadcom also declared a $0.65 quarterly dividend.

Quadrant Capital Group LLC boosted its holdings in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 3.0% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 129,718 shares of the semiconductor manufacturer's stock after acquiring an additional 3,818 shares during the period. Broadcom comprises 1.4% of Quadrant Capital Group LLC's portfolio, making the stock its 11th largest holding. Quadrant Capital Group LLC's holdings in Broadcom were worth $44,895,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the business. ROSS JOHNSON & Associates LLC grew its holdings in shares of Broadcom by 1,320.0% during the fourth quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer's stock worth $25,000 after buying an additional 66 shares in the last quarter. SWAN Capital LLC grew its holdings in Broadcom by 261.9% in the fourth quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer's stock valued at $26,000 after purchasing an additional 55 shares during the period. Miller Global Investments LLC purchased a new stake in Broadcom in the fourth quarter valued at approximately $31,000. Nvest Wealth Strategies Inc. purchased a new stake in Broadcom during the fourth quarter worth approximately $33,000. Finally, Family CFO Inc purchased a new stake in Broadcom during the fourth quarter worth approximately $35,000. Institutional investors and hedge funds own 76.43% of the company's stock.

Broadcom News Summary

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s quarterly results were very strong, with revenue up 48% to a record $22.2 billion, semiconductor revenue up 79%, AI semiconductor revenue up 143% to $10.8 billion, and more than $30 billion in AI bookings, suggesting demand remains robust. Article Title
• Positive Sentiment: Several analysts and commentators argue the recent drop could be a buying opportunity, saying Broadcom remains a core infrastructure winner in AI and that Wall Street’s long-term outlook is still constructive. Article Title
• Positive Sentiment: Fresh coverage highlighted Broadcom as one of the stocks with catalysts heading into the second half of the year, and some analysts have raised earnings forecasts and price targets despite the selloff. Article Title
• Neutral Sentiment: Jim Cramer said Broadcom’s earnings were “not good” and suggested tech stocks are harder to trust as leadership names, reflecting a more cautious market mood around the stock. Article Title
• Neutral Sentiment: Broadcom also announced cash tender offers for certain outstanding debt securities, a routine balance-sheet move that is unlikely to move the stock by itself. Article Title
• Negative Sentiment: Market commentary says the stock is being punished because investors are nitpicking Broadcom’s AI outlook and pricing the shares as if growth must keep accelerating without any hiccups. Article Title
• Negative Sentiment: One note warned that Broadcom told investors to expect gross profit margins to continue falling, reinforcing concerns that profitability may soften even as revenue grows. Article Title

Broadcom Stock Performance

Shares of AVGO opened at $382.07 on Friday. Broadcom Inc. has a 52-week low of $244.17 and a 52-week high of $495.00. 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 firm has a market capitalization of $1.82 trillion, a PE ratio of 63.68, a P/E/G ratio of 0.68 and a beta of 1.41. The firm has a 50-day moving average price of $404.26 and a 200 day moving average price of $363.33.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its quarterly earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share 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 company had revenue of $22.19 billion during the quarter, compared to the consensus estimate of $22.13 billion. During the same period in the prior year, the company earned $1.58 EPS. Broadcom's revenue was up 47.9% on a year-over-year basis. On average, sell-side analysts anticipate that Broadcom Inc. will post 10.24 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Monday, June 22nd will be paid a dividend of $0.65 per share. The ex-dividend date of this dividend 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 currently 43.33%.

Analyst Upgrades and Downgrades

AVGO has been the subject of several research reports. Rosenblatt Securities reiterated a "buy" rating and set a $500.00 price objective on shares of Broadcom in a research note on Thursday, June 4th. Benchmark upped their price target on shares of Broadcom from $485.00 to $545.00 and gave the company a "buy" rating in a report on Thursday, June 4th. Bank of America increased their target price on shares of Broadcom from $450.00 to $530.00 and gave the stock a "buy" rating in a report on Thursday, June 4th. Wall Street Zen raised shares of Broadcom from a "hold" rating to a "buy" rating in a report on Sunday, June 7th. Finally, Mizuho upped their price target on shares of Broadcom from $480.00 to $530.00 and gave the stock an "outperform" rating in a research report on Thursday, June 4th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $490.13.

Insider Activity at Broadcom

In other Broadcom news, insider S. Ram Velaga sold 8,000 shares of the company's stock in a transaction dated Friday, April 10th. The shares were sold at an average price of $370.52, for a total transaction of $2,964,160.00. Following the completion of the sale, the insider directly owned 57,932 shares of the company's stock, valued at approximately $21,464,964.64. This represents a 12.13% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Gayla J. Delly sold 1,000 shares of the stock in a transaction that occurred on Thursday, April 9th. The stock was sold at an average price of $358.31, for a total transaction of $358,310.00. Following the completion of the sale, the director directly owned 32,352 shares of the company's stock, valued at $11,592,045.12. This trade represents a 3.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 324,282 shares of company stock valued at $106,425,249. Corporate insiders own 1.90% of the company's stock.

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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