Cornerstone Planning LLC Invests $7.05 Million in Broadcom Inc. $AVGO

Key Points

• Cornerstone Planning LLC disclosed a new position in Broadcom, buying 20,363 shares valued at about $7.05 million. The stake represents 1.6% of the firm’s holdings and Broadcom is now its 19th largest position.
• Broadcom reported strong quarterly results, with earnings of $2.44 per share topping estimates and revenue of $22.19 billion slightly above forecasts. Revenue also rose 47.9% year over year, underscoring continued growth momentum.
• The company recently announced a quarterly dividend of $0.65 per share, payable June 30, while Wall Street remains largely upbeat. Analysts have a consensus rating of Moderate Buy with an average price target of $490.13, and several firms recently reiterated bullish targets above $500.

Cornerstone Planning LLC purchased a new stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) in the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund purchased 20,363 shares of the semiconductor manufacturer's stock, valued at approximately $7,049,000. Broadcom makes up 1.6% of Cornerstone Planning LLC's holdings, making the stock its 19th largest position.

Other institutional investors have also made changes to their positions in the company. ROSS JOHNSON & Associates LLC grew its holdings in shares of Broadcom by 1,320.0% during the 4th quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer's stock worth $25,000 after purchasing an additional 66 shares in the last quarter. SWAN Capital LLC raised its stake in Broadcom by 261.9% in the fourth quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer's stock valued at $26,000 after purchasing an additional 55 shares in the last quarter. Miller Global Investments LLC bought a new stake in Broadcom during the fourth quarter worth about $31,000. Nvest Wealth Strategies Inc. acquired a new stake in Broadcom during the fourth quarter worth about $33,000. Finally, Family CFO Inc acquired a new stake in Broadcom during the fourth quarter worth about $35,000. 76.43% of the stock is currently owned by institutional investors.

Broadcom Stock Performance

Shares of AVGO stock opened at $411.35 on Monday. Broadcom Inc. has a one year low of $244.17 and a one year high of $495.00. The company has a debt-to-equity ratio of 0.71, a current ratio of 2.24 and a quick ratio of 2.01. The business's 50 day simple moving average is $411.42 and its 200 day simple moving average is $363.34. The stock has a market capitalization of $1.96 trillion, a PE ratio of 68.56, a PEG ratio of 0.72 and a beta of 1.41.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share for the quarter, topping 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 business had revenue of $22.19 billion during the quarter, compared to the consensus estimate of $22.13 billion. During the same quarter last year, the firm earned $1.58 earnings per share. Broadcom's quarterly revenue was up 47.9% on a year-over-year basis. As a group, research analysts forecast that Broadcom Inc. will post 10.24 earnings per share for the current year.

Broadcom Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 22nd will be given a dividend of $0.65 per share. The ex-dividend date is Monday, June 22nd. This represents a $2.60 annualized dividend and a dividend yield of 0.6%. Broadcom's dividend payout ratio is presently 43.33%.

Key Headlines Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s debt tender offer was upsized to $3 billion after strong investor demand, signaling active balance-sheet management and reinforcing investor confidence. Broadcom Inc. Announces Results and Upsize of Offers to Purchase for Cash Certain of its Outstanding Debt Securities
• Positive Sentiment: JPMorgan remained bullish on Broadcom, saying investors should be “aggressive buyers,” which supports the view that the market may still be underestimating AVGO’s AI growth. AVGO stock jumps — JPMorgan says investors should be 'aggressive buyers' of Broadcom at current levels
• Positive Sentiment: Citi also called Broadcom a top chip stock on strong data-center demand, adding another bullish Wall Street view tied to AI infrastructure spending. Citi Touts Broadcom Inc. (AVGO) as a Top Chip Stock on Soaring Data Center Demand
• Positive Sentiment: One report said VMware, Broadcom’s second-largest business, may be set to accelerate, which could broaden growth beyond the company’s AI chip exposure. VMware: Broadcom's Second Biggest Business Set to Accelerate
• Neutral Sentiment: Insider Mark David Brazeal sold shares in two June transactions, but the sales were relatively small versus his remaining stake and do not necessarily change the broader investment thesis. Mark David Brazeal insider trading page
• Negative Sentiment: One analyst warned that chip valuations are getting stretched and suggested investors could consider alternatives, including Broadcom, which may temper enthusiasm if valuation concerns intensify. Analyst Warns Intel Valuation ‘Doesn't Make Sense.' Suggests NVIDIA, AMD, Micron, and Broadcom as Alternatives.

Analysts Set New Price Targets

Several equities analysts have recently commented on AVGO shares. The Goldman Sachs Group restated a "buy" rating and issued a $525.00 target price on shares of Broadcom in a research report on Thursday, June 4th. Cantor Fitzgerald reiterated an "overweight" rating and set a $525.00 price target on shares of Broadcom in a research report on Thursday, June 4th. Evercore reissued an "outperform" rating and issued a $582.00 price objective on shares of Broadcom in a research note on Tuesday, May 19th. Zacks Research downgraded shares of Broadcom from a "strong-buy" rating to a "hold" rating in a research report on Thursday, May 21st. Finally, Morgan Stanley set a $502.00 target price on Broadcom and gave the stock an "overweight" rating in a research note on Thursday, June 4th. One research analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $490.13.

Insider Buying and Selling at Broadcom

In related news, insider S. Ram Velaga sold 8,000 shares of the firm's stock in a transaction that occurred on Friday, April 10th. The stock was sold at an average price of $370.52, for a total transaction of $2,964,160.00. Following the completion of the sale, the insider owned 57,932 shares of the company's stock, valued at $21,464,964.64. This trade represents a 12.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Mark David Brazeal sold 4,825 shares of Broadcom stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $394.91, for a total value of $1,905,440.75. Following the completion of the sale, the insider owned 269,989 shares of the company's stock, valued at approximately $106,621,355.99. The trade was a 1.76% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 59,385 shares of company stock valued at $21,301,057 over the last ninety days. Insiders own 1.90% of the company's stock.

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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