Broadcom Inc. $AVGO Stake Decreased by Marco Investment Management LLC

Key Points

• Marco Investment Management LLC trimmed its Broadcom stake by 3.4% in the fourth quarter, but Broadcom remains its largest holding at 8.5% of the portfolio, valued at about $113.6 million.
• Broadcom continues to attract strong institutional and analyst attention, with hedge funds owning 76.43% of shares and Wall Street maintaining a Moderate Buy consensus alongside several price targets near $500.
• The company reported solid quarterly results, beating EPS and revenue expectations, while also paying a quarterly dividend of $0.65 per share; however, the stock was down 3.3% in Friday trading after recently reaching a 52-week high.

Marco Investment Management LLC lowered its position in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 3.4% during the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 328,132 shares of the semiconductor manufacturer's stock after selling 11,662 shares during the quarter. Broadcom comprises about 8.5% of Marco Investment Management LLC's portfolio, making the stock its largest position. Marco Investment Management LLC's holdings in Broadcom were worth $113,566,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also made changes to their positions in AVGO. JCIC Asset Management Inc. purchased a new stake in shares of Broadcom in the third quarter valued at $31,000. Miller Global Investments LLC purchased a new stake in shares of Broadcom in the fourth quarter valued at $31,000. Nvest Wealth Strategies Inc. purchased a new stake in shares of Broadcom in the fourth quarter valued at $33,000. Manning & Napier Advisors LLC purchased a new stake in shares of Broadcom in the third quarter valued at $34,000. Finally, Family CFO Inc purchased a new stake in shares of Broadcom in the fourth quarter valued at $35,000. Hedge funds and other institutional investors own 76.43% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on AVGO shares. Erste Group Bank downgraded shares of Broadcom from a "buy" rating to a "hold" rating in a research note on Thursday, April 2nd. Seaport Research Partners restated a "neutral" rating on shares of Broadcom in a report on Wednesday, April 8th. Benchmark restated a "buy" rating and issued a $485.00 price target on shares of Broadcom in a report on Thursday, March 5th. Rosenblatt Securities restated a "buy" rating and issued a $500.00 price target on shares of Broadcom in a report on Tuesday, April 7th. Finally, JPMorgan Chase & Co. upped their price target on shares of Broadcom from $475.00 to $500.00 and gave the stock an "overweight" rating in a report on Thursday, March 5th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat.com, Broadcom presently has an average rating of "Moderate Buy" and a consensus target price of $441.63.

Broadcom Stock Down 3.3%

NASDAQ:AVGO opened at $425.19 on Friday. Broadcom Inc. has a fifty-two week low of $221.60 and a fifty-two week high of $442.36. The stock has a market capitalization of $2.01 trillion, a P/E ratio of 83.05, a P/E/G ratio of 0.91 and a beta of 1.43. The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.73 and a current ratio of 1.90. The company's 50-day simple moving average is $365.61 and its 200-day simple moving average is $354.62.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its quarterly earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share for the quarter, beating analysts' consensus estimates of $2.03 by $0.02. Broadcom had a net margin of 36.57% and a return on equity of 38.61%. The business had revenue of $19.31 billion for the quarter, compared to analysts' expectations of $19.10 billion. During the same period last year, the business earned $1.60 EPS. The company's revenue was up 29.5% compared to the same quarter last year. On average, equities analysts anticipate that Broadcom Inc. will post 9.95 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Monday, March 23rd were issued a $0.65 dividend. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date was Monday, March 23rd. Broadcom's dividend payout ratio (DPR) is currently 50.78%.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom remains a favored way to play AI infrastructure, with multiple recent articles highlighting its growing exposure to custom AI silicon, data-center networking, and AI semiconductor revenue. Citi also raised its price target to $500, reinforcing optimism ahead of the next earnings report.
• Positive Sentiment: Wells Fargo lifted its price target to $545 and said AI semiconductor revenue is running 30% to 40% above expectations, suggesting Broadcom may still be benefiting from stronger-than-expected hyperscaler spending.
• Positive Sentiment: Recent investor interest has also been supportive, with hedge fund and prominent manager buying cited in several notes, alongside Broadcom being named among top tech stocks to own as AI optimism continues to drive the market.
• Neutral Sentiment: Broadcom was also mentioned in a broader AI rotation piece that argues the next leg of the rally may be in AI bottlenecks such as optics, networking, and memory rather than only the most obvious chip winners. Broadcom was specifically named as one of the companies positioned to benefit from optical interconnect demand.
• Negative Sentiment: UBS warned that AI stocks, including Broadcom, are increasingly crowded trades, raising the risk of a pullback if enthusiasm cools or if investors rotate out of mega-cap semiconductors.
• Negative Sentiment: Some commentary also suggests the AI chip rally may be masking broader market weakness, which can make even strong names like Broadcom vulnerable to profit-taking after a powerful advance.

Insiders Place Their Bets

In other news, Director Justine Page sold 2,018 shares of the firm's stock in a transaction dated Wednesday, April 8th. The shares were sold at an average price of $353.00, for a total value of $712,354.00. Following the sale, the director directly owned 18,164 shares in the company, valued at approximately $6,411,892. This trade represents a 10.00% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider S. Ram Velaga sold 8,000 shares of the firm'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 owned 57,932 shares in the company, valued at $21,464,964.64. This represents a 12.13% 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 worth $106,425,249. Insiders own 1.90% of the company's stock.

About Broadcom

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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