Broadcom Inc. $AVGO Stake Cut by Lord Abbett & CO. LLC

Key Points

• Lord Abbett & Co. LLC cut its Broadcom stake by 9.4% in the fourth quarter, selling 203,110 shares and ending with 1,948,433 shares valued at about $674.4 million. Broadcom remained the fund’s fourth-largest holding.
• Broadcom’s latest earnings were strong, with revenue rising 47.9% year over year to $22.19 billion and EPS of $2.44, slightly above estimates. AI-related semiconductor revenue jumped 143% to $10.8 billion, and the company said AI bookings topped $30 billion.
• Analysts remain broadly positive despite recent volatility, with multiple firms upgrading the stock or reiterating buy ratings and a consensus “Moderate Buy” rating. Broadcom also announced a quarterly dividend of $0.65 per share, payable June 30.

Lord Abbett & CO. LLC reduced its position in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 9.4% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 1,948,433 shares of the semiconductor manufacturer's stock after selling 203,110 shares during the quarter. Broadcom comprises approximately 2.1% of Lord Abbett & CO. LLC's investment portfolio, making the stock its 4th biggest holding. Lord Abbett & CO. LLC's holdings in Broadcom were worth $674,353,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also bought and sold shares of the company. Clal Insurance Enterprises Holdings Ltd grew its holdings in Broadcom by 50.0% in the fourth quarter. Clal Insurance Enterprises Holdings Ltd now owns 426,307 shares of the semiconductor manufacturer's stock worth $147,545,000 after purchasing an additional 142,040 shares during the last quarter. Beck Capital Management LLC grew its holdings in Broadcom by 2.7% in the fourth quarter. Beck Capital Management LLC now owns 45,186 shares of the semiconductor manufacturer's stock worth $15,639,000 after purchasing an additional 1,192 shares during the last quarter. Oasis Management Co Ltd. purchased a new position in Broadcom in the fourth quarter worth $7,330,000. Kane Investment Management Inc. grew its holdings in Broadcom by 3.2% in the fourth quarter. Kane Investment Management Inc. now owns 12,140 shares of the semiconductor manufacturer's stock worth $4,201,000 after purchasing an additional 375 shares during the last quarter. Finally, Solstein Capital LLC grew its holdings in Broadcom by 4.0% in the fourth quarter. Solstein Capital LLC now owns 2,160 shares of the semiconductor manufacturer's stock worth $748,000 after purchasing an additional 84 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 several analyst reports. Erste Group Bank raised shares of Broadcom from a "hold" rating to a "buy" rating in a report on Friday, June 5th. Wall Street Zen upgraded shares of Broadcom from a "hold" rating to a "buy" rating in a research note on Sunday, June 7th. TD Cowen reiterated a "buy" rating and set a $500.00 price objective on shares of Broadcom in a research note on Thursday, June 4th. Seaport Research Partners reiterated a "neutral" rating on shares of Broadcom in a research note on Wednesday, April 8th. Finally, Cantor Fitzgerald reiterated an "overweight" rating and set a $525.00 price objective on shares of Broadcom in a research note on Thursday, June 4th. One investment analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $490.13.

Broadcom News Roundup

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

Insider Buying and Selling at Broadcom

In related news, insider S. Ram Velaga sold 38,841 shares of the business's stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $321.60, for a total transaction of $12,491,265.60. Following the completion of the transaction, the insider directly owned 96,147 shares in the company, valued at $30,920,875.20. The trade was a 28.77% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Kirsten M. Spears sold 36,292 shares of the business's stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $321.60, for a total transaction of $11,671,507.20. Following the transaction, the chief financial officer owned 327,760 shares of the company's stock, valued at $105,407,616. This represents a 9.97% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 324,282 shares of company stock valued at $106,425,249. Company insiders own 1.90% of the company's stock.

Broadcom Trading Down 0.9%

NASDAQ:AVGO opened at $382.07 on Friday. Broadcom Inc. has a 12 month low of $244.17 and a 12 month high of $495.00. The firm has a fifty day simple moving average of $404.26 and a 200-day simple moving average of $363.33. The company has a current ratio of 2.24, a quick ratio of 2.01 and a debt-to-equity ratio of 0.71. The company has a market capitalization of $1.82 trillion, a P/E ratio of 63.68, a PEG ratio of 0.68 and a beta of 1.41.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its quarterly earnings data 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 business had revenue of $22.19 billion during the quarter, compared to the consensus estimate of $22.13 billion. During the same period in the previous year, the firm posted $1.58 earnings per share. The business's revenue for the quarter was up 47.9% compared to the same quarter last year. On average, equities research analysts anticipate that Broadcom Inc. will post 10.24 earnings per share for the current year.

Broadcom Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 22nd will be given a dividend of $0.65 per share. 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 payout ratio is currently 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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