Nippon Life Global Investors Americas Inc. Acquires 105,190 Shares of Broadcom Inc. $AVGO

Key Points

• Nippon Life Global Investors Americas Inc. significantly increased its stake in Broadcom Inc. by 680%, owning a total of 120,660 shares valued at over $20 million.
• Broadcom's quarterly earnings report showed EPS of $1.69, surpassing estimates, with a 22% year-over-year revenue growth to $15.95 billion.
• Analysts maintain a strong consensus on Broadcom, with 29 of 30 analysts rating it as a Buy or Strong Buy, and a new average price target raised to $304.17.

Nippon Life Global Investors Americas Inc. increased its stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 680.0% during the first quarter, according to its most recent Form 13F filing with the SEC. The firm owned 120,660 shares of the semiconductor manufacturer's stock after purchasing an additional 105,190 shares during the period. Nippon Life Global Investors Americas Inc.'s holdings in Broadcom were worth $20,202,000 as of its most recent filing with the SEC.

A number of other hedge funds also recently modified their holdings of AVGO. Barnes Dennig Private Wealth Management LLC bought a new position in shares of Broadcom in the first quarter worth $25,000. Cheviot Value Management LLC bought a new position in shares of Broadcom in the first quarter worth $25,000. Inlight Wealth Management LLC bought a new position in shares of Broadcom in the first quarter worth $26,000. Sunbeam Capital Management LLC bought a new position in shares of Broadcom in the fourth quarter worth $28,000. Finally, Vermillion Wealth Management Inc. bought a new position in shares of Broadcom in the fourth quarter worth $30,000. Institutional investors own 76.43% of the company's stock.

Analysts Set New Price Targets

A number of research analysts have issued reports on AVGO shares. Wells Fargo & Company lifted their target price on Broadcom from $255.00 to $345.00 and gave the company an "equal weight" rating in a research report on Friday. Evercore ISI reiterated an "outperform" rating and issued a $342.00 target price (up previously from $304.00) on shares of Broadcom in a research report on Thursday. TD Cowen lifted their target price on Broadcom from $355.00 to $370.00 and gave the company a "buy" rating in a research report on Friday. Piper Sandler lifted their target price on Broadcom from $315.00 to $375.00 and gave the company an "overweight" rating in a research report on Friday. Finally, Oppenheimer reissued an "outperform" rating and set a $360.00 price objective (up previously from $325.00) on shares of Broadcom in a report on Friday. Three analysts have rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and one has given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Buy" and a consensus target price of $351.00.

Insiders Place Their Bets

In other news, CEO Hock E. Tan sold 40,000 shares of Broadcom stock in a transaction dated Thursday, June 26th. The stock was sold at an average price of $268.29, for a total value of $10,731,600.00. Following the completion of the transaction, the chief executive officer directly owned 482,836 shares of the company's stock, valued at approximately $129,540,070.44. This trade represents a 7.65% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Kirsten M. Spears sold 36,350 shares of Broadcom stock in a transaction dated Tuesday, June 24th. The stock was sold at an average price of $261.27, for a total value of $9,497,164.50. Following the completion of the transaction, the chief financial officer directly owned 325,587 shares of the company's stock, valued at approximately $85,066,115.49. This trade represents a 10.04% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 830,516 shares of company stock valued at $217,286,457 over the last three months. Insiders own 2.00% of the company's stock.

Broadcom Trading Up 9.4%

Shares of NASDAQ:AVGO traded up $28.79 during midday trading on Friday, hitting $334.89. 78,318,626 shares of the stock were exchanged, compared to its average volume of 17,635,120. The stock has a market capitalization of $1.58 trillion, a price-to-earnings ratio of 85.43, a P/E/G ratio of 2.38 and a beta of 1.16. The company has a debt-to-equity ratio of 0.89, a quick ratio of 0.98 and a current ratio of 1.08. The business's 50-day moving average price is $292.09 and its 200 day moving average price is $237.31. Broadcom Inc. has a 12 month low of $134.90 and a 12 month high of $356.34.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its earnings results on Thursday, September 4th. The semiconductor manufacturer reported $1.69 EPS for the quarter, beating the consensus estimate of $1.66 by $0.03. Broadcom had a return on equity of 37.17% and a net margin of 31.59%.The business had revenue of $15.95 billion for the quarter, compared to analysts' expectations of $15.82 billion. During the same period in the prior year, the business posted $1.24 earnings per share. The firm's revenue was up 22.0% on a year-over-year basis. Broadcom has set its Q4 2025 guidance at EPS. Analysts predict that Broadcom Inc. will post 5.38 earnings per share for the current year.

Broadcom Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 30th. Investors of record on Monday, September 22nd will be issued a $0.59 dividend. The ex-dividend date is Monday, September 22nd. This represents a $2.36 annualized dividend and a yield of 0.7%. Broadcom's dividend payout ratio is presently 88.39%.

About Broadcom

Broadcom Inc designs, develops, and supplies various semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. The company operates in two segments, Semiconductor Solutions and Infrastructure Software.