Cogent Private Wealth Inc. Makes New Investment in Broadcom Inc. $AVGO

Key Points

• Cogent Private Wealth opened a new position in Broadcom during the fourth quarter, buying 3,945 shares worth about $1.365 million. The stake represents about 1.0% of its portfolio and Broadcom is now its 27th largest holding.
• Broadcom reported better-than-expected quarterly results, with EPS of $2.44 versus estimates of $2.40 and revenue of $22.19 billion, up 47.9% year over year. The company also said AI semiconductor demand remains strong, though the stock has been under pressure after the report.
• Analysts remain largely bullish despite the pullback, with several firms raising price targets; Broadcom’s consensus rating is Moderate Buy with a $490.13 target price. The company also announced a quarterly dividend of $0.65 per share, payable June 30.

Cogent Private Wealth Inc. purchased a new position in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) in the 4th quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 3,945 shares of the semiconductor manufacturer's stock, valued at approximately $1,365,000. Broadcom makes up 1.0% of Cogent Private Wealth Inc.'s holdings, making the stock its 27th largest holding.

Other institutional investors also recently modified their holdings of the company. Miller Global Investments LLC acquired a new stake in Broadcom during the 4th quarter worth approximately $31,000. Nvest Wealth Strategies Inc. acquired a new stake in Broadcom during the 4th quarter worth approximately $33,000. Family CFO Inc acquired a new stake in Broadcom during the 4th quarter worth approximately $35,000. PayPay Securities Corp boosted its position in Broadcom by 88.9% during the 4th quarter. PayPay Securities Corp now owns 119 shares of the semiconductor manufacturer's stock worth $41,000 after buying an additional 56 shares during the period. Finally, Cherry Tree Wealth Management LLC boosted its position in Broadcom by 44.9% during the 4th quarter. Cherry Tree Wealth Management LLC now owns 129 shares of the semiconductor manufacturer's stock worth $45,000 after buying an additional 40 shares during the period. 76.43% of the stock is currently owned by institutional investors and hedge funds.

Broadcom Stock Performance

Shares of AVGO stock opened at $385.73 on Friday. The firm has a market capitalization of $1.83 trillion, a PE ratio of 64.29, a price-to-earnings-growth ratio of 0.86 and a beta of 1.41. The firm has a fifty day simple moving average of $396.22 and a two-hundred day simple moving average of $361.90. The company has a current ratio of 2.24, a quick ratio of 1.73 and a debt-to-equity ratio of 0.71. Broadcom Inc. has a 12 month low of $241.11 and a 12 month 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 (EPS) for the quarter, topping analysts' consensus estimates of $2.40 by $0.04. The firm had revenue of $22.19 billion for the quarter, compared to the consensus estimate of $22.13 billion. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The business's revenue for the quarter was up 47.9% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.58 EPS. Analysts forecast that Broadcom Inc. will post 9.97 EPS for the current fiscal year.

Broadcom Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders 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 yield of 0.7%. The ex-dividend date of this dividend is Monday, June 22nd. Broadcom's payout ratio is currently 43.33%.

Analyst Upgrades and Downgrades

AVGO has been the topic of several recent research reports. Citigroup reiterated a "buy" rating on shares of Broadcom in a research report on Thursday. Bank of America lifted their target price on shares of Broadcom from $450.00 to $530.00 and gave the stock a "buy" rating in a research report on Thursday. Morgan Stanley set a $502.00 target price on shares of Broadcom and gave the stock an "overweight" rating in a research report on Thursday. Benchmark lifted their target price on shares of Broadcom from $485.00 to $545.00 and gave the stock a "buy" rating in a research report on Thursday. Finally, Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and set a $515.00 target price (up from $430.00) on shares of Broadcom in a research report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat, Broadcom presently has a consensus rating of "Moderate Buy" and a consensus price target of $490.13.

Key Headlines Impacting Broadcom

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

Insider Activity

In other Broadcom news, insider S. Ram Velaga sold 38,841 shares of Broadcom stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $321.60, for a total transaction of $12,491,265.60. Following the transaction, the insider directly owned 96,147 shares of the company's stock, valued at $30,920,875.20. The trade was a 28.77% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Charlie B. Kawwas sold 39,116 shares of Broadcom stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $321.61, for a total transaction of $12,580,096.76. Following the transaction, the insider directly owned 74,626 shares in the company, valued at $24,000,467.86. This represents a 34.39% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 324,282 shares of company stock valued at $106,425,249 over the last quarter. 1.90% of the stock is owned by insiders.

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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