Broadcom Inc. $AVGO Stake Increased by Gateway Investment Advisers LLC

Key Points

• Gateway Investment Advisers LLC increased its Broadcom stake by 0.7% in the fourth quarter, ending with 827,745 shares valued at about $286.5 million. Broadcom is now its 7th-largest holding and makes up 2.7% of its portfolio.
• Wall Street sentiment remains bullish, with Broadcom holding a consensus “Moderate Buy” rating and an average price target of $436.13. Recent analyst moves were mixed, including Wells Fargo’s upgrade to overweight and Citi’s higher target tied to strong AI demand.
• Broadcom posted strong recent results, reporting $2.05 in EPS and $19.31 billion in revenue, both above expectations, with revenue up 29.5% year over year. The company also paid a quarterly dividend of $0.65 per share, equal to a 0.6% yield.

Gateway Investment Advisers LLC grew its stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 0.7% during the 4th quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 827,745 shares of the semiconductor manufacturer's stock after buying an additional 5,759 shares during the quarter. Broadcom accounts for 2.7% of Gateway Investment Advisers LLC's investment portfolio, making the stock its 7th biggest position. Gateway Investment Advisers LLC's holdings in Broadcom were worth $286,483,000 as of its most recent filing with the SEC.

Several other institutional investors and hedge funds have also recently made changes to their positions in the stock. Providence First Trust Co boosted its position in Broadcom by 1,099.3% during the third quarter. Providence First Trust Co now owns 8,923 shares of the semiconductor manufacturer's stock valued at $2,944,000 after buying an additional 8,179 shares during the period. Whittier Trust Co. of Nevada Inc. boosted its position in Broadcom by 3.4% during the third quarter. Whittier Trust Co. of Nevada Inc. now owns 323,587 shares of the semiconductor manufacturer's stock valued at $109,492,000 after buying an additional 10,786 shares during the period. Lmcg Investments LLC boosted its position in Broadcom by 9.4% during the third quarter. Lmcg Investments LLC now owns 38,961 shares of the semiconductor manufacturer's stock valued at $12,854,000 after buying an additional 3,357 shares during the period. Wright Investors Service Inc. boosted its position in Broadcom by 5.4% during the third quarter. Wright Investors Service Inc. now owns 42,159 shares of the semiconductor manufacturer's stock valued at $13,909,000 after buying an additional 2,178 shares during the period. Finally, Brown Brothers Harriman & Co. grew its holdings in Broadcom by 10.7% in the 3rd quarter. Brown Brothers Harriman & Co. now owns 77,411 shares of the semiconductor manufacturer's stock worth $25,539,000 after acquiring an additional 7,499 shares during the last quarter. Hedge funds and other institutional investors own 76.43% of the company's stock.

Wall Street Analysts Forecast Growth

AVGO has been the topic of a number of recent analyst reports. Wells Fargo & Company raised shares of Broadcom from an "equal weight" rating to an "overweight" rating and raised their price target for the stock from $410.00 to $430.00 in a report on Thursday, January 15th. Weiss Ratings cut Broadcom from a "buy (b-)" rating to a "hold (c+)" rating in a report on Friday, April 24th. Royal Bank Of Canada dropped their price objective on Broadcom from $370.00 to $340.00 and set a "sector perform" rating for the company in a report on Monday, March 2nd. Seaport Research Partners restated a "neutral" rating on shares of Broadcom in a report on Wednesday, April 8th. Finally, DA Davidson upgraded Broadcom to a "hold" rating in a report on Friday, February 13th. Two research analysts have rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $436.13.

Insider Activity at Broadcom

In other news, insider Charlie B. Kawwas sold 39,116 shares of the business's stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $321.61, for a total transaction of $12,580,096.76. Following the completion of the transaction, the insider directly owned 74,626 shares of the company's stock, valued at $24,000,467.86. The trade was a 34.39% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider S. Ram Velaga sold 38,841 shares of the business's stock in a transaction that occurred 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 transaction, the insider directly owned 96,147 shares of the company's stock, valued at $30,920,875.20. The trade was a 28.77% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 324,282 shares of company stock valued at $106,425,249 over the last ninety days. Company insiders own 1.90% of the company's stock.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Citi raised its price target on Broadcom to $500 from $475 and kept a Buy rating, citing strong AI demand and expectations for another strong quarter. Citi Raises Broadcom Price Target to $500: AI Demand Sets Up Another Big April Quarter
• Positive Sentiment: Other Wall Street coverage also pointed to continued upside for Broadcom, reflecting optimism around its AI infrastructure exposure and earnings outlook. Wall Street sets Broadcom (AVGO) stock price for the next 12 months
• Positive Sentiment: Zacks highlighted Broadcom’s strong earnings-surprise history and said the company appears well-positioned to beat estimates again in its next report. Will Broadcom Inc. (AVGO) Beat Estimates Again in Its Next Earnings Report?
• Neutral Sentiment: Broadcom’s latest stock move also appears tied to a recent run-up, with one article saying investors were taking profits after a large AI-driven rally rather than reacting to a fundamental deterioration. Why analysts are bullish on Broadcom stock despite a 4% fall today?
• Neutral Sentiment: Several hedge-fund and institutional filings showed mixed activity in Broadcom, with some firms trimming holdings while Mirova US LLC added shares; these moves are notable but not necessarily a direct signal on the company’s fundamentals. PRIMECAP Management Co trims Broadcom stake by 12,410 shares Cincinnati Specialty Underwriters slashes Broadcom stake by 207K shares Mirova US LLC Boosts Broadcom Stake by 183,850 Shares

Broadcom Trading Down 2.1%

NASDAQ:AVGO opened at $419.30 on Wednesday. Broadcom Inc. has a one year low of $221.60 and a one year high of $437.68. The company has a debt-to-equity ratio of 0.80, a current ratio of 1.90 and a quick ratio of 1.73. The company's 50-day simple moving average is $358.98 and its 200 day simple moving average is $353.01. The firm has a market capitalization of $1.99 trillion, a P/E ratio of 81.89, a PEG ratio of 0.89 and a beta of 1.43.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its quarterly earnings data on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 EPS for the quarter, topping the consensus estimate of $2.03 by $0.02. The business had revenue of $19.31 billion for the quarter, compared to analyst estimates of $19.10 billion. Broadcom had a net margin of 36.57% and a return on equity of 38.61%. Broadcom's quarterly revenue was up 29.5% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.60 earnings per share. As a group, analysts forecast that Broadcom Inc. will post 9.95 EPS for the current fiscal year.

Broadcom Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Monday, March 23rd were issued a dividend of $0.65 per share. This represents a $2.60 annualized dividend and a dividend yield of 0.6%. The ex-dividend date of this dividend was Monday, March 23rd. Broadcom's payout ratio is presently 50.78%.

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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