Clal Insurance Enterprises Holdings Ltd Purchases 142,040 Shares of Broadcom Inc. $AVGO

Key Points

• Clal Insurance Enterprises Holdings increased its Broadcom stake by 50% in the fourth quarter, buying 142,040 additional shares and bringing its total holdings to 426,307 shares worth about $147.5 million.
• Broadcom reported a strong quarter, with revenue up 47.9% to $22.19 billion and EPS of $2.44 beating estimates, while AI semiconductor revenue jumped 143% to $10.8 billion.
• Despite the upbeat results, the stock has faced pressure as investors worry about valuation and margin trends; meanwhile, analysts remain mostly constructive, with a consensus Moderate Buy rating and an average target price around $490.

Clal Insurance Enterprises Holdings Ltd raised its position in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 50.0% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 426,307 shares of the semiconductor manufacturer's stock after buying an additional 142,040 shares during the quarter. Broadcom comprises about 1.0% of Clal Insurance Enterprises Holdings Ltd's holdings, making the stock its 26th largest position. Clal Insurance Enterprises Holdings Ltd's holdings in Broadcom were worth $147,545,000 at the end of the most recent reporting period.

Several other hedge funds have also recently made changes to their positions in the company. Vanguard Group Inc. raised its stake in shares of Broadcom by 0.8% in the fourth quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer's stock valued at $167,064,997,000 after buying an additional 3,919,715 shares during the period. Geode Capital Management LLC raised its stake in shares of Broadcom by 1.4% during the 4th quarter. Geode Capital Management LLC now owns 111,277,280 shares of the semiconductor manufacturer's stock valued at $38,396,634,000 after purchasing an additional 1,548,699 shares during the period. Norges Bank bought a new stake in shares of Broadcom during the 4th quarter valued at $24,252,196,000. Invesco Ltd. raised its stake in shares of Broadcom by 1.8% during the 3rd quarter. Invesco Ltd. now owns 39,149,651 shares of the semiconductor manufacturer's stock valued at $12,915,861,000 after purchasing an additional 700,021 shares during the period. Finally, Legal & General Group Plc raised its stake in shares of Broadcom by 2.3% during the 3rd quarter. Legal & General Group Plc now owns 33,450,786 shares of the semiconductor manufacturer's stock valued at $11,035,749,000 after purchasing an additional 748,709 shares during the period. 76.43% of the stock is currently owned by institutional investors.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s quarterly results were very strong, with revenue up 48% to a record $22.2 billion, semiconductor revenue up 79%, AI semiconductor revenue up 143% to $10.8 billion, and more than $30 billion in AI bookings, suggesting demand remains robust. Article Title
• Positive Sentiment: Several analysts and commentators argue the recent drop could be a buying opportunity, saying Broadcom remains a core infrastructure winner in AI and that Wall Street’s long-term outlook is still constructive. Article Title
• Positive Sentiment: Fresh coverage highlighted Broadcom as one of the stocks with catalysts heading into the second half of the year, and some analysts have raised earnings forecasts and price targets despite the selloff. Article Title
• Neutral Sentiment: Jim Cramer said Broadcom’s earnings were “not good” and suggested tech stocks are harder to trust as leadership names, reflecting a more cautious market mood around the stock. Article Title
• Neutral Sentiment: Broadcom also announced cash tender offers for certain outstanding debt securities, a routine balance-sheet move that is unlikely to move the stock by itself. Article Title
• Negative Sentiment: Market commentary says the stock is being punished because investors are nitpicking Broadcom’s AI outlook and pricing the shares as if growth must keep accelerating without any hiccups. Article Title
• Negative Sentiment: One note warned that Broadcom told investors to expect gross profit margins to continue falling, reinforcing concerns that profitability may soften even as revenue grows. Article Title

Insider Transactions at Broadcom

In other news, CFO Kirsten M. Spears sold 36,292 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 $11,671,507.20. Following the completion of the transaction, the chief financial officer directly owned 327,760 shares in the company, valued at approximately $105,407,616. This represents a 9.97% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed 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 completion of the transaction, the insider owned 96,147 shares of the company's stock, valued at $30,920,875.20. The trade was a 28.77% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 324,282 shares of company stock valued at $106,425,249 over the last quarter. 1.90% of the stock is owned by company insiders.

Broadcom Stock Down 0.9%

AVGO stock opened at $382.07 on Friday. The company has a current ratio of 2.24, a quick ratio of 2.01 and a debt-to-equity ratio of 0.71. The company's 50 day moving average is $404.26 and its 200 day moving average is $363.33. The stock has a market cap of $1.82 trillion, a price-to-earnings ratio of 63.68, a price-to-earnings-growth ratio of 0.68 and a beta of 1.41. Broadcom Inc. has a 1-year low of $244.17 and a 1-year high of $495.00.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its quarterly earnings data on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share for the quarter, topping the consensus estimate of $2.40 by $0.04. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The company had revenue of $22.19 billion for the quarter, compared to analysts' expectations of $22.13 billion. During the same period in the prior year, the business earned $1.58 earnings per share. Broadcom's revenue for the quarter was up 47.9% compared to the same quarter last year. Sell-side analysts predict that Broadcom Inc. will post 10.24 EPS for the current fiscal year.

Broadcom Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Monday, June 22nd will be issued 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 is Monday, June 22nd. Broadcom's dividend payout ratio is presently 43.33%.

Analyst Ratings Changes

A number of analysts recently issued reports on AVGO shares. Oppenheimer reiterated an "outperform" rating and set a $535.00 price objective (up from $450.00) on shares of Broadcom in a research note on Thursday, June 4th. Weiss Ratings upgraded Broadcom from a "buy (b-)" rating to a "buy (b)" rating in a research note on Tuesday. DA Davidson boosted their price objective on Broadcom from $375.00 to $400.00 and gave the company a "neutral" rating in a research note on Thursday, June 4th. Susquehanna reiterated a "positive" rating and set a $490.00 price objective (up from $450.00) on shares of Broadcom in a research note on Thursday, May 28th. Finally, Zacks Research lowered Broadcom from a "strong-buy" rating to a "hold" rating in a research note on Thursday, May 21st. One research analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, Broadcom has a consensus rating of "Moderate Buy" and a consensus target price of $490.13.

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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