Broadcom Inc. $AVGO Shares Purchased by Core Alternative Capital

Key Points

• Core Alternative Capital increased its Broadcom stake by 57% in the fourth quarter, bringing its holdings to 5,542 shares valued at about $1.9 million.
• Wall Street sentiment remains constructive, with analysts mostly rating Broadcom a Buy and setting an average price target of $435.30, while several firms raised their targets recently.
• Broadcom reported strong quarterly results, beating EPS and revenue estimates, but the stock is facing pressure after reports that OpenAI’s planned $18 billion custom chip deal hit a financing snag.

Core Alternative Capital boosted its stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 57.0% during the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 5,542 shares of the semiconductor manufacturer's stock after buying an additional 2,012 shares during the period. Core Alternative Capital's holdings in Broadcom were worth $1,918,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently bought and sold shares of the stock. Miller Global Investments LLC purchased a new stake in Broadcom during the fourth quarter worth about $31,000. JCIC Asset Management Inc. acquired a new stake in shares of Broadcom in the 3rd quarter valued at $31,000. Nvest Wealth Strategies Inc. acquired a new stake in shares of Broadcom in the 4th quarter valued at $33,000. Family CFO Inc purchased a new position in Broadcom in the fourth quarter valued at approximately $35,000. Finally, Manning & Napier Advisors LLC purchased a new position in Broadcom in the third quarter valued at approximately $34,000. 76.43% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on the company. Benchmark reiterated a "buy" rating and issued a $485.00 target price on shares of Broadcom in a research note on Thursday, March 5th. JPMorgan Chase & Co. raised their target price on Broadcom from $475.00 to $500.00 and gave the company an "overweight" rating in a report on Thursday, March 5th. Truist Financial raised their price target on Broadcom from $510.00 to $545.00 and gave the company a "buy" rating in a research report on Thursday, March 5th. Wolfe Research upgraded Broadcom from a "peer perform" rating to an "outperform" rating and set a $400.00 price target for the company in a research report on Friday, January 30th. Finally, Mizuho reiterated an "outperform" rating and set a $480.00 price objective on shares of Broadcom in a research report on Thursday, April 16th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, Broadcom currently has a consensus rating of "Moderate Buy" and an average price target of $435.30.

Broadcom Stock Performance

Shares of AVGO opened at $430.00 on Monday. The business's 50 day moving average is $352.89 and its two-hundred day moving average is $351.28. Broadcom Inc. has a 52-week low of $206.52 and a 52-week high of $437.68. The firm has a market cap of $2.04 trillion, a price-to-earnings ratio of 83.98, a PEG ratio of 0.89 and a beta of 1.43. The company has a quick ratio of 1.73, a current ratio of 1.90 and a debt-to-equity ratio of 0.80.

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 (EPS) for the quarter, beating the consensus estimate of $2.03 by $0.02. Broadcom had a return on equity of 38.61% and a net margin of 36.57%.The business had revenue of $19.31 billion for the quarter, compared to analyst estimates of $19.10 billion. During the same period in the prior year, the company posted $1.60 EPS. The business's revenue was up 29.5% compared to the same quarter last year. Analysts forecast that Broadcom Inc. will post 9.95 EPS for the current fiscal year.

Broadcom Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Investors 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 annualized dividend and a yield of 0.6%. Broadcom's dividend payout ratio (DPR) is currently 50.78%.

Insider Transactions at Broadcom

In related news, insider S. Ram Velaga sold 38,841 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 value of $12,491,265.60. Following the completion of the transaction, the insider owned 96,147 shares in the company, valued at $30,920,875.20. This trade represents a 28.77% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 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 owned 278,141 shares of the company's stock, valued at $89,450,145.60. The trade was a 15.36% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 324,282 shares of company stock worth $106,425,249. Corporate insiders own 1.90% of the company's stock.

Broadcom News Summary

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 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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