CIBC Asset Management Inc Acquires 212,161 Shares of Broadcom Inc. $AVGO

Key Points

• CIBC Asset Management increased its Broadcom stake by 13.3% in the fourth quarter, buying 212,161 shares and bringing its total to 1,803,216 shares worth about $624 million.
• Broadcom reported strong quarterly results, with earnings per share of $2.44 topping estimates and revenue rising 47.9% year over year to $22.19 billion.
• Wall Street remains largely upbeat on AVGO, with several firms raising price targets and the stock carrying a consensus “Moderate Buy” rating, even as recent insider sales and some analyst downgrades add caution.

CIBC Asset Management Inc lifted its holdings in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 13.3% in the fourth quarter, according to the company in its most recent filing with the SEC. The fund owned 1,803,216 shares of the semiconductor manufacturer's stock after acquiring an additional 212,161 shares during the quarter. Broadcom accounts for about 1.5% of CIBC Asset Management Inc's holdings, making the stock its 16th biggest holding. CIBC Asset Management Inc's holdings in Broadcom were worth $624,008,000 at the end of the most recent quarter.

Other hedge funds have also recently made changes to their positions in the company. Brown Brothers Harriman & Co. lifted its holdings in shares of Broadcom by 10.7% in the 3rd 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 during the last quarter. Dana Investment Advisors Inc. increased its stake in shares of Broadcom by 2.6% in the third quarter. Dana Investment Advisors Inc. now owns 173,759 shares of the semiconductor manufacturer's stock worth $57,325,000 after buying an additional 4,442 shares during the period. Guinness Atkinson Asset Management Inc increased its stake in shares of Broadcom by 248.2% in the third quarter. Guinness Atkinson Asset Management Inc now owns 26,238 shares of the semiconductor manufacturer's stock worth $8,603,000 after buying an additional 18,703 shares during the period. Sovran Advisors LLC increased its stake in shares of Broadcom by 121.3% in the fourth quarter. Sovran Advisors LLC now owns 30,631 shares of the semiconductor manufacturer's stock worth $10,507,000 after buying an additional 16,789 shares during the period. Finally, Thurston Springer Miller Herd & Titak Inc. increased its stake in shares of Broadcom by 406.1% in the fourth quarter. Thurston Springer Miller Herd & Titak Inc. now owns 11,994 shares of the semiconductor manufacturer's stock worth $4,151,000 after buying an additional 9,624 shares during the period. 76.43% of the stock is currently owned by institutional investors.

Insider Activity

In other news, insider S. Ram Velaga sold 8,000 shares of the business's stock in a transaction on Friday, April 10th. The shares were sold at an average price of $370.52, for a total transaction of $2,964,160.00. Following the sale, the insider owned 57,932 shares in the company, valued at approximately $21,464,964.64. The trade was a 12.13% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Justine Page sold 2,018 shares of the business's stock in a transaction on Wednesday, April 8th. The shares were sold at an average price of $353.00, for a total transaction of $712,354.00. Following the sale, the director owned 18,164 shares in the company, valued at approximately $6,411,892. This trade represents a 10.00% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 324,282 shares of company stock worth $106,425,249. 1.90% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

Several research analysts recently commented on AVGO shares. Jefferies Financial Group set a $550.00 target price on shares of Broadcom and gave the stock a "buy" rating in a research note on Thursday. Zacks Research downgraded shares of Broadcom from a "strong-buy" rating to a "hold" rating in a research note on Thursday, May 21st. Morgan Stanley set a $502.00 target price on shares of Broadcom and gave the stock an "overweight" rating in a research note on Thursday. Susquehanna reaffirmed a "positive" rating and issued a $490.00 target price (up from $450.00) on shares of Broadcom in a research note on Thursday, May 28th. Finally, JPMorgan Chase & Co. lifted their target price on shares of Broadcom from $500.00 to $580.00 and gave the stock an "overweight" rating in a research note on Thursday. One investment analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $490.13.

Broadcom Stock Performance

Shares of AVGO stock opened at $385.73 on Friday. Broadcom Inc. has a 12 month low of $241.11 and a 12 month high of $495.00. The stock has a market cap of $1.83 trillion, a PE ratio of 64.29, a price-to-earnings-growth ratio of 0.79 and a beta of 1.41. The company has a current ratio of 2.24, a quick ratio of 1.73 and a debt-to-equity ratio of 0.71. The company's fifty day moving average price is $396.22 and its 200-day moving average price is $361.90.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced 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 net margin of 38.85% and a return on equity of 41.61%. The firm had revenue of $22.19 billion for the quarter, compared to analysts' expectations of $22.13 billion. During the same quarter in the previous year, the business posted $1.58 EPS. The company's quarterly revenue was up 47.9% on a year-over-year basis. On average, equities analysts expect that Broadcom Inc. will post 9.97 EPS for the current fiscal year.

Broadcom Announces Dividend

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

Broadcom News Summary

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

About Broadcom

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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