Colonial River Investments LLC Grows Stock Holdings in Broadcom Inc. $AVGO

Key Points

• Colonial River Investments boosted its Broadcom stake by 44.1% in the fourth quarter, ending with 13,750 shares worth about $4.76 million. Broadcom is now its 11th-largest holding and makes up 1.7% of its portfolio.
• Broadcom continues to draw strong Wall Street and hedge fund interest, with 76.43% of shares held by institutional investors and analysts mostly rating the stock a Buy. The average price target currently sits at $441.63.
• Despite the bullish sentiment, Broadcom saw notable insider selling and the stock was down 3.3% in recent trading. The company also posted strong quarterly results, beating EPS and revenue estimates while revenue jumped 29.5% year over year.

Colonial River Investments LLC increased its stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 44.1% in the 4th quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 13,750 shares of the semiconductor manufacturer's stock after purchasing an additional 4,208 shares during the period. Broadcom makes up 1.7% of Colonial River Investments LLC's investment portfolio, making the stock its 11th largest holding. Colonial River Investments LLC's holdings in Broadcom were worth $4,759,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds have also recently made changes to their positions in the company. Miller Global Investments LLC purchased a new position in shares of Broadcom during the fourth quarter valued at approximately $31,000. JCIC Asset Management Inc. purchased a new position in shares of Broadcom during the third quarter valued at approximately $31,000. Nvest Wealth Strategies Inc. purchased a new position in shares of Broadcom during the fourth quarter valued at approximately $33,000. Family CFO Inc purchased a new position in shares of Broadcom during the fourth quarter valued at approximately $35,000. Finally, Manning & Napier Advisors LLC purchased a new position in shares of Broadcom during the third quarter valued at approximately $34,000. 76.43% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several research analysts have recently weighed in on the stock. Seaport Research Partners reissued a "neutral" rating on shares of Broadcom in a report on Wednesday, April 8th. JPMorgan Chase & Co. upped their target price on shares of Broadcom from $475.00 to $500.00 and gave the company an "overweight" rating in a report on Thursday, March 5th. Rosenblatt Securities reaffirmed a "buy" rating and set a $500.00 target price on shares of Broadcom in a report on Tuesday, April 7th. Bank of America reduced their target price on shares of Broadcom from $500.00 to $450.00 and set a "buy" rating for the company in a report on Thursday, March 5th. Finally, Royal Bank Of Canada reduced their target price on shares of Broadcom from $370.00 to $340.00 and set a "sector perform" rating for the company in a report 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 issued a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $441.63.

Insider Activity

In other Broadcom news, insider S. Ram Velaga sold 38,841 shares of the company's stock in a transaction that occurred on Tuesday, March 17th. The shares were 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 directly owned 96,147 shares in the company, valued at $30,920,875.20. This represents a 28.77% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Mark David Brazeal sold 50,488 shares of the company's stock in a transaction that occurred on 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 completion of the transaction, the insider owned 278,141 shares of the company's stock, valued at approximately $89,450,145.60. The trade was a 15.36% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 324,282 shares of company stock valued at $106,425,249. Company insiders own 1.90% of the company's stock.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom remains a favored way to play AI infrastructure, with multiple recent articles highlighting its growing exposure to custom AI silicon, data-center networking, and AI semiconductor revenue. Citi also raised its price target to $500, reinforcing optimism ahead of the next earnings report.
• Positive Sentiment: Wells Fargo lifted its price target to $545 and said AI semiconductor revenue is running 30% to 40% above expectations, suggesting Broadcom may still be benefiting from stronger-than-expected hyperscaler spending.
• Positive Sentiment: Recent investor interest has also been supportive, with hedge fund and prominent manager buying cited in several notes, alongside Broadcom being named among top tech stocks to own as AI optimism continues to drive the market.
• Neutral Sentiment: Broadcom was also mentioned in a broader AI rotation piece that argues the next leg of the rally may be in AI bottlenecks such as optics, networking, and memory rather than only the most obvious chip winners. Broadcom was specifically named as one of the companies positioned to benefit from optical interconnect demand.
• Negative Sentiment: UBS warned that AI stocks, including Broadcom, are increasingly crowded trades, raising the risk of a pullback if enthusiasm cools or if investors rotate out of mega-cap semiconductors.
• Negative Sentiment: Some commentary also suggests the AI chip rally may be masking broader market weakness, which can make even strong names like Broadcom vulnerable to profit-taking after a powerful advance.

Broadcom Stock Down 3.3%

Shares of AVGO stock opened at $425.19 on Friday. Broadcom Inc. has a 12 month low of $221.60 and a 12 month high of $442.36. The stock has a market cap of $2.01 trillion, a P/E ratio of 83.05, a P/E/G ratio of 0.88 and a beta of 1.43. 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 company has a 50 day simple moving average of $365.61 and a two-hundred day simple moving average of $354.62.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 EPS for the quarter, beating analysts' consensus estimates of $2.03 by $0.02. Broadcom had a net margin of 36.57% and a return on equity of 38.61%. The business had revenue of $19.31 billion during the quarter, compared to analysts' expectations of $19.10 billion. During the same period in the prior year, the company earned $1.60 earnings per share. The firm's revenue was up 29.5% on a year-over-year basis. On average, research analysts expect that Broadcom Inc. will post 9.95 earnings per share for the current year.

Broadcom Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Monday, March 23rd were given a $0.65 dividend. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date was Monday, March 23rd. Broadcom's dividend payout ratio is presently 50.78%.

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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