Broadcom Inc. $AVGO Stock Holdings Lowered by Oppenheimer & Co. Inc.

Key Points

• Oppenheimer & Co. Inc. trimmed its Broadcom stake by 4.4% in the fourth quarter, selling 13,654 shares and leaving it with 296,054 shares valued at about $102.5 million.
• Broadcom is facing pressure from reports that OpenAI’s planned $18 billion custom chip deal hit a financing snag, raising concerns about a key AI growth opportunity for the company.
• Despite the headline risk, Broadcom recently beat quarterly earnings and revenue estimates and maintained strong analyst support, with a consensus rating of Moderate Buy and an average price target of $435.30.

Oppenheimer & Co. Inc. lessened its holdings in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 4.4% during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 296,054 shares of the semiconductor manufacturer's stock after selling 13,654 shares during the quarter. Broadcom makes up 1.5% of Oppenheimer & Co. Inc.'s portfolio, making the stock its 7th largest holding. Oppenheimer & Co. Inc.'s holdings in Broadcom were worth $102,464,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Providence First Trust Co raised its holdings in shares of 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 acquiring an additional 8,179 shares during the period. Whittier Trust Co. of Nevada Inc. grew its position in Broadcom by 3.4% in the third quarter. Whittier Trust Co. of Nevada Inc. now owns 323,587 shares of the semiconductor manufacturer's stock worth $109,492,000 after acquiring an additional 10,786 shares in the last quarter. Lmcg Investments LLC grew its position in Broadcom by 9.4% in the third quarter. Lmcg Investments LLC now owns 38,961 shares of the semiconductor manufacturer's stock worth $12,854,000 after acquiring an additional 3,357 shares in the last quarter. Wright Investors Service Inc. grew its position in Broadcom by 5.4% in the third quarter. Wright Investors Service Inc. now owns 42,159 shares of the semiconductor manufacturer's stock worth $13,909,000 after acquiring an additional 2,178 shares in the last quarter. Finally, Brown Brothers Harriman & Co. grew its position in Broadcom by 10.7% in the third 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 in the last quarter. 76.43% of the stock is currently owned by institutional investors.

Key Stories Impacting Broadcom

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

Insider Buying and Selling at Broadcom

In related news, Director Gayla J. Delly sold 1,000 shares of the stock in a transaction dated Thursday, April 9th. The shares were sold at an average price of $358.31, for a total transaction of $358,310.00. Following the completion of the sale, the director owned 32,352 shares in the company, valued at $11,592,045.12. This trade represents a 3.00% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, 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 transaction of $712,354.00. Following the completion of the sale, the director owned 18,164 shares of the company's stock, valued at $6,411,892. The trade was a 10.00% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 324,282 shares of company stock worth $106,425,249 over the last ninety days. Company insiders own 1.90% of the company's stock.

Analyst Ratings Changes

AVGO has been the subject of a number of analyst reports. Seaport Research Partners restated a "neutral" rating on shares of Broadcom in a research note on Wednesday, April 8th. Weiss Ratings lowered Broadcom from a "buy (b-)" rating to a "hold (c+)" rating in a report on Friday, April 24th. Citigroup upped their target price on shares of Broadcom from $458.00 to $475.00 and gave the company a "buy" rating in a research note on Thursday, March 5th. Mizuho reiterated an "outperform" rating and set a $480.00 target price on shares of Broadcom in a research note on Thursday, April 16th. Finally, Wells Fargo & Company upgraded shares of Broadcom from an "equal weight" rating to an "overweight" rating and upped their target price for the company from $410.00 to $430.00 in a research note on Thursday, January 15th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, Broadcom presently has an average rating of "Moderate Buy" and a consensus price target of $435.30.

Broadcom Trading Up 4.2%

Shares of AVGO opened at $430.00 on Friday. Broadcom Inc. has a 1 year low of $206.52 and a 1 year high of $437.68. The company has a current ratio of 1.90, a quick ratio of 1.73 and a debt-to-equity ratio of 0.80. The stock has a 50 day simple moving average of $352.89 and a 200-day simple moving average of $351.28. The stock has a market cap of $2.04 trillion, a PE ratio of 83.98, a PEG ratio of 0.85 and a beta of 1.43.

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

Broadcom Announces Dividend

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