Broadcom Inc. $AVGO Stock Position Cut by TD Asset Management Inc

Key Points

• TD Asset Management cut its Broadcom stake by 4.8% in the fourth quarter, selling 356,428 shares and ending with 7,067,018 shares worth about $2.45 billion.
• Broadcom reported better-than-expected quarterly results, with EPS of $2.44 versus $2.40 expected and revenue of $22.19 billion versus $22.13 billion expected, while revenue jumped 47.9% year over year.
• The company also declared a quarterly dividend of $0.65 per share, payable June 30, and Wall Street remains broadly positive with a consensus Moderate Buy rating and an average price target of $490.13.

TD Asset Management Inc lessened its stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 4.8% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 7,067,018 shares of the semiconductor manufacturer's stock after selling 356,428 shares during the period. Broadcom makes up approximately 2.0% of TD Asset Management Inc's holdings, making the stock its 7th largest position. TD Asset Management Inc owned about 0.15% of Broadcom worth $2,445,895,000 at the end of the most recent reporting period.

A number of other hedge funds have also added to or reduced their stakes in the stock. Norges Bank bought a new stake in shares of Broadcom in the fourth quarter worth $24,252,196,000. Arrowstreet Capital Limited Partnership lifted its holdings in Broadcom by 499.4% in the third quarter. Arrowstreet Capital Limited Partnership now owns 5,634,232 shares of the semiconductor manufacturer's stock valued at $1,858,789,000 after acquiring an additional 4,694,313 shares during the period. Vanguard Group Inc. boosted its position in Broadcom by 0.8% in the fourth quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer's stock worth $167,064,997,000 after purchasing an additional 3,919,715 shares during the last quarter. Nordea Investment Management AB boosted its position in Broadcom by 47.5% in the fourth quarter. Nordea Investment Management AB now owns 9,814,757 shares of the semiconductor manufacturer's stock worth $3,406,211,000 after purchasing an additional 3,160,586 shares during the last quarter. Finally, Danske Bank A S bought a new stake in shares of Broadcom during the 3rd quarter valued at about $987,488,000. 76.43% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

AVGO has been the topic of several recent research reports. Jefferies Financial Group set a $550.00 price objective on shares of Broadcom and gave the stock a "buy" rating in a research note on Thursday. Cantor Fitzgerald restated an "overweight" rating and set a $525.00 target price on shares of Broadcom in a research report on Thursday. KeyCorp reaffirmed an "overweight" rating and set a $575.00 target price (up from $500.00) on shares of Broadcom in a report on Thursday. TD Cowen reiterated a "buy" rating and issued a $500.00 price target on shares of Broadcom in a research report on Thursday. Finally, DA Davidson lifted their price target on shares of Broadcom from $375.00 to $400.00 and gave the stock a "neutral" rating in a research note on Thursday. One research analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat, Broadcom currently has a consensus rating of "Moderate Buy" and an average price target of $490.13.

Broadcom Price Performance

Shares of NASDAQ:AVGO opened at $385.73 on Monday. The company has a market capitalization of $1.83 trillion, a P/E ratio of 64.29, a P/E/G ratio of 0.70 and a beta of 1.41. Broadcom Inc. has a 1-year low of $241.11 and a 1-year high of $495.00. The firm's 50 day simple moving average is $396.22 and its two-hundred day simple moving average is $362.04. The company has a debt-to-equity ratio of 0.71, a current ratio of 2.24 and a quick ratio of 2.01.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its quarterly earnings data on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.40 by $0.04. The firm had revenue of $22.19 billion during the quarter, compared to analysts' expectations of $22.13 billion. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The company's revenue for the quarter was up 47.9% compared to the same quarter last year. During the same period in the prior year, the company posted $1.58 earnings per share. Research analysts expect that Broadcom Inc. will post 9.97 EPS for the current fiscal year.

Broadcom Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Monday, June 22nd will be paid a $0.65 dividend. This represents a $2.60 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date is Monday, June 22nd. Broadcom's dividend payout ratio is presently 43.33%.

Insider Buying and Selling at Broadcom

In other news, insider Charlie B. Kawwas sold 10,000 shares of the company's stock in a transaction dated Wednesday, April 8th. The stock was sold at an average price of $345.23, for a total value of $3,452,300.00. Following the completion of the transaction, the insider owned 787,184 shares of the company's stock, valued at $271,759,532.32. This represents a 1.25% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Gayla J. Delly sold 1,000 shares of the stock in a transaction dated Thursday, April 9th. The stock was sold at an average price of $358.31, for a total value of $358,310.00. Following the sale, the director owned 32,352 shares of the company's stock, valued at $11,592,045.12. This represents a 3.00% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 324,282 shares of company stock valued at $106,425,249. 1.90% of the stock is currently owned by corporate insiders.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom posted record quarterly revenue, beat earnings estimates, and said AI semiconductor demand remains strong, supporting the long-term growth story. Broadcom Q2 Earnings Surpasses Estimates, Revenues Surge Y/Y
• Positive Sentiment: Several analysts remain bullish and raised price targets after the pullback, arguing the market is overreacting to expectations rather than fundamentals. Goldman Sachs urges investors to buy Broadcom dip with still AI revenue trajectory intact
• Positive Sentiment: Management still expects AI revenue to reach $56 billion in fiscal 2026 and more than $100 billion in fiscal 2027, keeping the longer-term AI thesis intact. AVGO Shares Drop 13% Post Q2 Results: Buy, Sell or Hold on the Dip?
• Neutral Sentiment: Broadcom also declared a quarterly dividend, which is supportive for income investors but not a major near-term stock driver.
• Negative Sentiment: The stock is under pressure because the AI outlook, while strong, was not upgraded enough to satisfy investors who had priced in an even bigger upside surprise. Broadcom's sales and AI chip forecast comes in below expectations, shares tumble
• Negative Sentiment: The disappointment has spilled over into the semiconductor sector, pressuring peers such as AMD, Intel, Micron, and Marvell as investors reassess AI trade valuations. Intel, AMD stocks slide again in aftermath of Broadcom's weak outlook

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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