Composition Wealth LLC Raises Stock Position in Broadcom Inc. $AVGO

Key Points

• Composition Wealth LLC increased its Broadcom stake by 2.8% in the fourth quarter, buying 2,593 additional shares and bringing its holdings to 94,903 shares valued at about $32.85 million.
• Broadcom continues to attract heavy institutional ownership, with hedge funds and other institutional investors holding 76.43% of the stock. Several firms, including Vanguard and Arrowstreet, also added to their positions.
• Despite solid recent earnings and analyst support, Broadcom is facing some pressure from reports that OpenAI’s planned $18 billion custom chip deal hit a financing snag, raising questions about a major AI growth driver.

Composition Wealth LLC lifted its stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 2.8% during the fourth quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 94,903 shares of the semiconductor manufacturer's stock after acquiring an additional 2,593 shares during the quarter. Composition Wealth LLC's holdings in Broadcom were worth $32,846,000 at the end of the most recent reporting period.

A number of other institutional investors have also modified their holdings of the stock. Arrowstreet Capital Limited Partnership increased its holdings in Broadcom by 499.4% during the third quarter. Arrowstreet Capital Limited Partnership now owns 5,634,232 shares of the semiconductor manufacturer's stock valued at $1,858,789,000 after buying an additional 4,694,313 shares during the period. Vanguard Group Inc. increased its holdings in Broadcom by 0.8% during 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. Nordea Investment Management AB increased its holdings in Broadcom by 47.5% during the fourth quarter. Nordea Investment Management AB now owns 9,814,757 shares of the semiconductor manufacturer's stock valued at $3,406,211,000 after buying an additional 3,160,586 shares during the period. Danske Bank A S purchased a new position in Broadcom during the third quarter valued at approximately $987,488,000. Finally, PFA Pension Forsikringsaktieselskab purchased a new position in Broadcom during the fourth quarter valued at approximately $924,858,000. 76.43% of the stock is owned by hedge funds and other institutional investors.

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 value of $12,491,265.60. Following the transaction, the insider directly owned 96,147 shares of the company's stock, valued at approximately $30,920,875.20. The trade was a 28.77% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed 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 completion of 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 a total of 324,282 shares of company stock valued at $106,425,249 over the last three months. Company insiders own 1.90% of the company's stock.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Negative Sentiment: Broadcom shares are under pressure after reports said OpenAI’s planned $18 billion custom chip deal with the company hit a financing roadblock, creating uncertainty around a key AI revenue driver. Broadcom shares slump as OpenAI’s $18B custom chip deal hits financing snag
• Negative Sentiment: Another report framed the OpenAI issue as a major setback for Broadcom’s custom AI chip ambitions, adding concern that one of its flagship customer relationships may not be as immediately monetizable as investors hoped. Broadcom's OpenAI mega AI deal hits $18 billion wall
• Neutral Sentiment: Broadcom also announced VMware by Broadcom VCF 9.1, a product update aimed at accelerating production AI workloads in private clouds, which supports the company’s long-term enterprise AI strategy. Broadcom (AVGO) Launches VCF 9.1 to Accelerate Production AI in Private Clouds
• Neutral Sentiment: Several commentary pieces remained constructive on Broadcom’s position in the AI infrastructure stack, noting that recent hyperscaler results still support demand for chips and networking tied to AI buildouts. Big Tech earnings support Broadcom’s outlook
• Neutral Sentiment: Broadcom was also mentioned in a public-sector VMware partnership update, which could help broaden enterprise distribution but is not likely the main driver of the stock today. evoila U.S. and Carahsoft Partner to Deliver VMware by Broadcom Services to the Public Sector

Broadcom Price Performance

NASDAQ AVGO opened at $430.00 on Friday. The firm's fifty day simple moving average is $352.89 and its two-hundred day simple moving average is $351.28. The company has a current ratio of 1.90, a quick ratio of 1.73 and a debt-to-equity ratio of 0.80. Broadcom Inc. has a 12-month low of $206.52 and a 12-month high of $437.68. The firm has a market capitalization of $2.04 trillion, a P/E ratio of 83.98, a P/E/G ratio of 0.89 and a beta of 1.43.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its quarterly earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share (EPS) for the quarter, topping the consensus estimate 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 for the quarter, compared to analyst estimates of $19.10 billion. During the same period in the previous year, the company earned $1.60 earnings per share. The business's revenue for the quarter was up 29.5% on a year-over-year basis. Analysts forecast that Broadcom Inc. will post 9.95 EPS for the current fiscal year.

Broadcom Dividend Announcement

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

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on AVGO shares. Wolfe Research raised shares of Broadcom from a "peer perform" rating to an "outperform" rating and set a $400.00 price objective on the stock in a report on Friday, January 30th. JPMorgan Chase & Co. lifted their price objective on shares of Broadcom from $475.00 to $500.00 and gave the company an "overweight" rating in a report on Thursday, March 5th. Weiss Ratings lowered shares of Broadcom from a "buy (b-)" rating to a "hold (c+)" rating in a report on Friday, April 24th. Rosenblatt Securities reissued a "buy" rating and set a $500.00 price objective on shares of Broadcom in a report on Tuesday, April 7th. Finally, Erste Group Bank lowered shares of Broadcom from a "buy" rating to a "hold" rating in a report on Thursday, April 2nd. Two analysts have rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and four have assigned a Hold rating to the company's stock. According to MarketBeat, Broadcom has a consensus rating of "Moderate Buy" and a consensus target price of $435.30.

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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