CHICAGO TRUST Co NA Lowers Position in Broadcom Inc. $AVGO

Key Points

• CHICAGO TRUST Co NA cut its Broadcom stake by 5.9% in the first quarter, though it still held 22,792 shares valued at about $7.05 million.
• Broadcom continues to draw strong AI-related optimism, with analysts and recent coverage highlighting demand for custom AI silicon and the company’s partnership with OpenAI on the “Jalapeño” accelerator.
• The stock has also seen some cautionary signals, including recent insider selling and shares remaining about 14% below the level seen after its last earnings report, even after Broadcom reported results that beat estimates.

CHICAGO TRUST Co NA lessened its stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 5.9% in the 1st quarter, according to its most recent disclosure with the SEC. The firm owned 22,792 shares of the semiconductor manufacturer's stock after selling 1,429 shares during the period. Broadcom accounts for about 1.1% of CHICAGO TRUST Co NA's investment portfolio, making the stock its 18th biggest holding. CHICAGO TRUST Co NA's holdings in Broadcom were worth $7,054,000 as of its most recent filing with the SEC.

Other institutional investors have also recently made changes to their positions in the company. Syntax Research Inc. increased its holdings in Broadcom by 0.8% in the 1st quarter. Syntax Research Inc. now owns 13,113 shares of the semiconductor manufacturer's stock worth $4,058,000 after acquiring an additional 103 shares in the last quarter. Lynch Asset Management Inc. lifted its holdings in Broadcom by 1.6% during the first quarter. Lynch Asset Management Inc. now owns 18,550 shares of the semiconductor manufacturer's stock valued at $5,741,000 after purchasing an additional 300 shares in the last quarter. Semus Wealth Partners LLC boosted its position in shares of Broadcom by 6.3% in the first quarter. Semus Wealth Partners LLC now owns 6,370 shares of the semiconductor manufacturer's stock worth $1,971,000 after purchasing an additional 380 shares during the period. Cane Capital Partners LLC boosted its position in shares of Broadcom by 21.2% in the first quarter. Cane Capital Partners LLC now owns 16,358 shares of the semiconductor manufacturer's stock worth $5,063,000 after purchasing an additional 2,864 shares during the period. Finally, Vertrix Wealth Management LLC purchased a new stake in shares of Broadcom in the first quarter worth $5,436,000. Institutional investors own 76.43% of the company's stock.

Broadcom News Summary

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: JPMorgan, UBS, Jefferies and other analysts remain constructive on Broadcom’s AI-driven growth, with price targets well above current levels and continued optimism around custom AI silicon demand, including exposure to customers such as OpenAI and Anthropic. UBS Reaffirms Buy Rating on Broadcom (AVGO) Amid AI ASIC Demand and OpenAI, Anthropic Growth
• Positive Sentiment: Articles highlighting Broadcom’s partnership with OpenAI on the “Jalapeño” AI accelerator reinforce the market’s bullish view that AI infrastructure can keep driving revenue growth. What Broadcom (AVGO)'s Jalapeño AI Accelerator Partnership With OpenAI Means For Shareholders
• Neutral Sentiment: Several recent write-ups argue Broadcom may be attractive after its pullback, but they mostly restate the same long-term thesis rather than pointing to a new catalyst. Why Broadcom Stock Slumped Today
• Neutral Sentiment: Investors continue to search for clues on whether Broadcom can rebound from its post-earnings decline, with coverage focusing on earnings estimates and fair-value changes. Broadcom (AVGO) Stock Gets Fair Value Boost As Analysts Split On AI Outlook
• Negative Sentiment: Director Justine Page sold 1,602 shares of Broadcom stock, extending insider-selling headlines that can weigh on sentiment even if the sale is relatively small versus the company’s size. SEC Form 4 filing for Justine Page sale
• Negative Sentiment: Broadcom remains about 14% below its last earnings report level, and recent commentary suggests investors are still uneasy about whether the company’s strong results were enough to justify its premium valuation. Broadcom Inc. (AVGO) Down 14% Since Last Earnings Report: Can It Rebound?

Insider Transactions at Broadcom

In related news, insider S. Ram Velaga sold 8,000 shares of Broadcom stock in a transaction dated Friday, April 10th. The stock was sold at an average price of $370.52, for a total value of $2,964,160.00. Following the completion of the transaction, the insider owned 57,932 shares in the company, valued at approximately $21,464,964.64. This trade represents a 12.13% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Harry L. You acquired 1,000 shares of Broadcom stock in a transaction on Thursday, June 11th. The shares were bought at an average cost of $373.57 per share, for a total transaction of $373,570.00. Following the completion of the purchase, the director directly owned 38,466 shares of the company's stock, valued at $14,369,743.62. The trade was a 2.67% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last 90 days, insiders sold 60,987 shares of company stock worth $21,899,980. 1.90% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

Several brokerages recently weighed in on AVGO. Seaport Research Partners reaffirmed a "neutral" rating on shares of Broadcom in a report on Wednesday, April 8th. TD Cowen restated a "buy" rating and issued a $500.00 price objective on shares of Broadcom in a research report on Thursday, June 4th. Zacks Research lowered Broadcom from a "strong-buy" rating to a "hold" rating in a research note on Thursday, May 21st. Susquehanna reiterated a "positive" rating and set a $490.00 target price (up from $450.00) on shares of Broadcom in a research report on Thursday, May 28th. Finally, Truist Financial lifted their target price on Broadcom from $545.00 to $550.00 and gave the company a "buy" rating in a research note on Thursday, June 4th. One research analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, Broadcom presently has a consensus rating of "Moderate Buy" and a consensus price target of $493.24.

Broadcom Stock Performance

NASDAQ:AVGO opened at $360.45 on Monday. The company has a market cap of $1.71 trillion, a price-to-earnings ratio of 60.08, a PEG ratio of 0.63 and a beta of 1.45. Broadcom Inc. has a 1 year low of $269.58 and a 1 year high of $495.00. The stock's 50 day simple moving average is $407.92 and its two-hundred day simple moving average is $362.49. 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 posted its earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, beating analysts' consensus estimates of $2.40 by $0.04. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.The firm had revenue of $22.19 billion during the quarter, compared to the consensus estimate of $22.13 billion. During the same period in the prior year, the company earned $1.58 EPS. The company's quarterly revenue was up 47.9% compared to the same quarter last year. As a group, equities analysts anticipate that Broadcom Inc. will post 10.24 earnings per share for the current fiscal year.

Broadcom Announces Dividend

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

Broadcom Company 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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