Broadcom Inc. $AVGO Stock Position Lifted by Alberta Investment Management Corp

Key Points

• Alberta Investment Management Corp more than doubled its Broadcom stake in the fourth quarter, increasing holdings by 114% to 174,000 shares valued at about $60.2 million. Institutional ownership remains high, with 76.43% of Broadcom shares held by institutions.
• Broadcom continues to draw bullish analyst support, with JPMorgan, Citi, Oppenheimer, and others raising price targets or reiterating positive ratings on the stock. The consensus rating is Moderate Buy, with a consensus target price of $490.13.
• The company posted strong quarterly results, including EPS of $2.44 and revenue of $22.19 billion, both ahead of estimates, while revenue surged 47.9% year over year. Broadcom also announced a quarterly dividend of $0.65 per share, payable June 30.

Alberta Investment Management Corp grew its holdings in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 114.0% during the fourth quarter, according to its most recent Form 13F filing with the SEC. The firm owned 174,000 shares of the semiconductor manufacturer's stock after purchasing an additional 92,700 shares during the period. Alberta Investment Management Corp's holdings in Broadcom were worth $60,221,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also modified their holdings of AVGO. ROSS JOHNSON & Associates LLC raised its stake in shares of Broadcom by 1,320.0% in the 4th quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer's stock worth $25,000 after buying an additional 66 shares in the last quarter. SWAN Capital LLC boosted its stake in Broadcom by 261.9% during the fourth quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer's stock valued at $26,000 after buying an additional 55 shares in the last quarter. Miller Global Investments LLC acquired a new position in Broadcom during the fourth quarter worth about $31,000. Nvest Wealth Strategies Inc. acquired a new position in Broadcom during the fourth quarter worth about $33,000. Finally, Family CFO Inc bought a new stake in Broadcom in the fourth quarter worth about $35,000. 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:

• Positive Sentiment: Broadcom expanded its cash tender offers for outstanding debt to $3 billion from $2.5 billion after strong investor demand, which can be viewed as a sign of balance-sheet management and helped lift sentiment toward the stock. Broadcom Inc. Announces Results and Upsize of Offers to Purchase for Cash Certain of its Outstanding Debt Securities
• Positive Sentiment: JPMorgan reiterated a bullish view, saying investors should be “aggressive buyers” and arguing the market is underestimating Broadcom’s long-term AI opportunity, reinforcing the rally in AVGO. AVGO stock jumps — JPMorgan says investors should be 'aggressive buyers' of Broadcom at current levels
• Positive Sentiment: Citi also highlighted Broadcom as a top chip stock on soaring data-center demand, adding to optimism around AI-driven revenue growth. Citi Touts Broadcom Inc. (AVGO) as a Top Chip Stock on Soaring Data Center Demand
• Neutral Sentiment: Insider Mark David Brazeal sold shares in two June transactions totaling more than 8,100 shares. The sales are notable, but they represent relatively small reductions in a large personal holding and do not necessarily signal a change in the company’s outlook. Mark David Brazeal insider trading page

Insider Activity

In other Broadcom news, insider S. Ram Velaga sold 17,260 shares of Broadcom stock in a transaction dated Thursday, April 9th. The stock was sold at an average price of $352.12, for a total transaction of $6,077,591.20. Following the transaction, the insider owned 65,932 shares of the company's stock, valued at $23,215,975.84. The trade was a 20.75% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Justine Page sold 2,018 shares of Broadcom 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 transaction, 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 SEC filing for this sale provides additional information. Insiders sold 59,385 shares of company stock valued at $21,301,057 in the last ninety days. Corporate insiders own 1.90% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on AVGO shares. Oppenheimer reissued an "outperform" rating and issued a $535.00 price target (up from $450.00) on shares of Broadcom in a report on Thursday, June 4th. JPMorgan Chase & Co. boosted their target price on shares of Broadcom from $500.00 to $580.00 and gave the stock an "overweight" rating in a report on Thursday, June 4th. UBS Group set a $485.00 target price on shares of Broadcom and gave the company a "buy" rating in a research note on Thursday, June 4th. KeyCorp restated an "overweight" rating and set a $575.00 target price (up from $500.00) on shares of Broadcom in a report on Thursday, June 4th. Finally, Erste Group Bank upgraded shares of Broadcom from a "hold" rating to a "buy" rating in a research report on Friday, June 5th. One equities 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 stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $490.13.

Broadcom Stock Up 4.7%

AVGO stock opened at $411.35 on Friday. Broadcom Inc. has a 52-week low of $244.17 and a 52-week high of $495.00. The company's 50 day simple moving average is $410.21 and its 200-day simple moving average is $363.17. The company has a debt-to-equity ratio of 0.71, a current ratio of 2.24 and a quick ratio of 2.01. The firm has a market capitalization of $1.96 trillion, a P/E ratio of 68.56, a P/E/G ratio of 0.69 and a beta of 1.41.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its quarterly earnings data on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 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 analyst estimates of $22.13 billion. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The company's revenue was up 47.9% on a year-over-year basis. During the same quarter last year, the business posted $1.58 EPS. As a group, equities research analysts anticipate that Broadcom Inc. will post 10.24 EPS for the current year.

Broadcom Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 22nd will be given a dividend of $0.65 per share. This represents a $2.60 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend is Monday, June 22nd. Broadcom's payout ratio is presently 43.33%.

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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