Capital City Trust Co. FL Sells 2,706 Shares of Broadcom Inc. $AVGO

Key Points

• Capital City Trust Co. FL trimmed its Broadcom stake by 3.7% in the fourth quarter, selling 2,706 shares and leaving it with 69,761 shares worth about $24.1 million. Broadcom remains its third-largest position and makes up 5.4% of the portfolio.
• Broadcom is benefiting from strong AI-related optimism, with analysts increasingly bullish on its AI chip and data-center networking business and investors viewing it as a key winner of the AI spending cycle. Institutional buying has also helped support sentiment.
• The stock has had a powerful run and remains richly valued, recently trading near its 52-week high with a market cap above $2 trillion. While earnings and revenue have continued to beat expectations, the stock could be sensitive to any slowdown in AI demand or legal overhangs such as the EU antitrust lawsuit tied to VMware.

Capital City Trust Co. FL lowered its stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 3.7% during the fourth quarter, according to its most recent Form 13F filing with the SEC. The fund owned 69,761 shares of the semiconductor manufacturer's stock after selling 2,706 shares during the period. Broadcom accounts for 5.4% of Capital City Trust Co. FL's investment portfolio, making the stock its 3rd largest position. Capital City Trust Co. FL's holdings in Broadcom were worth $24,144,000 as of its most recent filing with the SEC.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the stock. Baring Financial LLC boosted its stake in Broadcom by 2.2% during the fourth quarter. Baring Financial LLC now owns 1,359 shares of the semiconductor manufacturer's stock worth $470,000 after buying an additional 29 shares during the last quarter. Five Oceans Advisors boosted its stake in Broadcom by 0.4% during the fourth quarter. Five Oceans Advisors now owns 8,191 shares of the semiconductor manufacturer's stock worth $2,835,000 after buying an additional 29 shares during the last quarter. Jackson Hole Capital Partners LLC boosted its stake in Broadcom by 1.4% during the third quarter. Jackson Hole Capital Partners LLC now owns 2,170 shares of the semiconductor manufacturer's stock worth $716,000 after buying an additional 30 shares during the last quarter. Private Wealth Partners LLC boosted its stake in Broadcom by 0.7% during the third quarter. Private Wealth Partners LLC now owns 4,273 shares of the semiconductor manufacturer's stock worth $1,410,000 after buying an additional 30 shares during the last quarter. Finally, Planning Alternatives Ltd. ADV boosted its stake in Broadcom by 1.4% during the third quarter. Planning Alternatives Ltd. ADV now owns 2,168 shares of the semiconductor manufacturer's stock worth $715,000 after buying an additional 30 shares during the last quarter. Institutional investors and hedge funds own 76.43% of the company's stock.

Broadcom News Summary

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Wells Fargo and other analysts turned more bullish on Broadcom’s AI chip and data-center networking business, saying Wall Street may be underestimating demand from hyperscaler buildouts. Article Title
• Positive Sentiment: Broadcom is being framed as one of the main winners of the AI capital-spending cycle, with multiple articles highlighting accelerating custom AI silicon revenue and expectations for continued earnings growth into the next report. Article Title
• Positive Sentiment: Investor sentiment was also helped by major institutions and high-profile investors continuing to add to Broadcom positions, reinforcing the view that the AI thesis remains intact. Article Title
• Neutral Sentiment: Broadcom’s valuation remains elevated after its sharp run, so the stock may be sensitive to any sign that AI growth slows or expectations become too optimistic.
• Negative Sentiment: The company is also facing an EU antitrust lawsuit over VMware-related document requests, which adds a legal overhang even though it is not the main driver of today’s move. Article Title

Broadcom Price Performance

AVGO opened at $439.79 on Friday. The stock's 50-day moving average price is $363.46 and its 200 day moving average price is $354.12. Broadcom Inc. has a 12-month low of $221.60 and a 12-month high of $442.36. 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 firm has a market cap of $2.08 trillion, a price-to-earnings ratio of 85.90, a PEG ratio of 0.86 and a beta of 1.43.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.03 by $0.02. Broadcom had a return on equity of 38.61% and a net margin of 36.57%.The firm had revenue of $19.31 billion for the quarter, compared to analyst estimates of $19.10 billion. During the same quarter in the prior year, the company earned $1.60 EPS. Broadcom's revenue was up 29.5% on a year-over-year basis. As a group, sell-side analysts expect that Broadcom Inc. will post 9.95 earnings per share for the current 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 paid a dividend of $0.65 per share. The ex-dividend date of this dividend was Monday, March 23rd. This represents a $2.60 annualized dividend and a yield of 0.6%. Broadcom's dividend payout ratio is presently 50.78%.

Insider Transactions at Broadcom

In other Broadcom news, insider Mark David Brazeal sold 50,488 shares of the company's stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $321.60, for a total transaction of $16,236,940.80. Following the sale, the insider owned 278,141 shares in the company, valued at $89,450,145.60. This represents a 15.36% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider S. Ram Velaga sold 38,841 shares of the company's stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $321.60, for a total value of $12,491,265.60. Following the sale, the insider owned 96,147 shares in the company, valued at approximately $30,920,875.20. This trade represents a 28.77% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 324,282 shares of company stock worth $106,425,249 in the last 90 days. Insiders own 1.90% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on AVGO. Zacks Research raised Broadcom from a "hold" rating to a "strong-buy" rating in a research note on Thursday, April 2nd. Mizuho reaffirmed an "outperform" rating and issued a $480.00 price target on shares of Broadcom in a research note on Thursday, April 16th. DA Davidson raised Broadcom to a "hold" rating in a research note on Friday, February 13th. Wolfe Research raised Broadcom from a "peer perform" rating to an "outperform" rating and set a $400.00 price target on the stock in a research note on Friday, January 30th. Finally, Royal Bank Of Canada decreased their price target on Broadcom from $370.00 to $340.00 and set a "sector perform" rating on the stock in a research note on Monday, March 2nd. Two investment analysts have rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $439.97.

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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