Cullen Frost Bankers Inc. Cuts Position in Broadcom Inc. $AVGO

Key Points

• Cullen Frost Bankers Inc. trimmed its Broadcom stake by 2.0% in the fourth quarter, selling 10,161 shares and ending with 510,358 shares valued at about $176.6 million.
• Broadcom’s latest earnings beat expectations, with Q2 revenue up 29.5% year over year to $19.31 billion and EPS of $2.05 versus estimates of $2.03, reinforcing momentum in its semiconductor business.
• Investor sentiment remains mostly positive on Broadcom’s AI growth story, with analysts citing strong AI infrastructure demand and multiple firms maintaining or raising price targets, though some notes flag valuation and EU regulatory scrutiny as risks.

Cullen Frost Bankers Inc. lessened its holdings in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 2.0% during the fourth quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 510,358 shares of the semiconductor manufacturer's stock after selling 10,161 shares during the period. Broadcom makes up approximately 1.9% of Cullen Frost Bankers Inc.'s portfolio, making the stock its 11th biggest holding. Cullen Frost Bankers Inc.'s holdings in Broadcom were worth $176,635,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. JCIC Asset Management Inc. purchased a new position in shares of Broadcom in the 3rd quarter worth approximately $31,000. Miller Global Investments LLC purchased a new position in shares of Broadcom in the 4th quarter worth approximately $31,000. Nvest Wealth Strategies Inc. purchased a new position in shares of Broadcom in the 4th quarter worth approximately $33,000. Family CFO Inc purchased a new position in shares of Broadcom in the 4th quarter worth approximately $35,000. Finally, PayPay Securities Corp boosted its stake in shares of Broadcom by 88.9% in 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 last quarter. Hedge funds and other institutional investors own 76.43% of the company's stock.

Key Headlines Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s AI semiconductor business is showing rapid growth, with AI revenue more than doubling and stronger Q2 expectations tied to hyperscale demand. Broadcom Rides on Accelerating Semiconductor Revenues: What's Ahead?
• Positive Sentiment: Analysts continue to highlight Broadcom as one of Goldman Sachs’ strongest AI infrastructure bets, reinforcing optimism around its role in AI chips and networking. Why Broadcom (AVGO) Remains One of Goldman’s Strongest AI Infrastructure Bets
• Positive Sentiment: Broadcom is expanding its AI ecosystem through a $125 million research and talent hub with Meta and UCLA, plus packaging work with Applied Materials, which could support long-term growth. Broadcom’s AI Research Push Links Chip Packaging Advances To Growth Story
• Positive Sentiment: Several articles and analyst notes point to strong long-term upside, with Broadcom repeatedly described as a durable AI winner and a solid growth stock. Is Broadcom Inc. (AVGO) a Solid Growth Stock? 3 Reasons to Think "Yes"
• Neutral Sentiment: Commentary about Broadcom’s stock price in 2030 reflects bullish long-term AI expectations, but it does not appear to be a near-term catalyst. This Will be Broadcom’s Stock Price In 2030
• Neutral Sentiment: Broader market commentary and inflation worries have also been mentioned, but these articles do not identify a Broadcom-specific problem. Inflation Fears Weighed on Broadcom (AVGO) in Q1
• Negative Sentiment: One recent note says Broadcom remains “overcrowded,” suggesting valuation or positioning risk after a strong rally. Broadcom Is Far Too Overcrowded
• Negative Sentiment: Broadcom has also faced some regulatory scrutiny in the EU, which could create headline risk even as AI sentiment stays positive. Broadcom Inc. (AVGO) Challenges EU Regulators While Barclays Sees AI Upside

Broadcom Stock Performance

NASDAQ:AVGO opened at $414.14 on Monday. 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 stock has a market capitalization of $1.96 trillion, a PE ratio of 80.89, a price-to-earnings-growth ratio of 0.86 and a beta of 1.43. The firm's 50 day moving average is $373.30 and its 200 day moving average is $356.05. Broadcom Inc. has a 12 month low of $226.18 and a 12 month high of $442.36.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share (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 for the quarter, compared to analysts' expectations of $19.10 billion. During the same quarter in the previous year, the firm posted $1.60 EPS. The business's revenue for the quarter was up 29.5% compared to the same quarter last year. Sell-side analysts expect that Broadcom Inc. will post 9.91 earnings per share for the current year.

Broadcom Dividend Announcement

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

Insider Buying and Selling at Broadcom

In other Broadcom news, insider Mark David Brazeal sold 50,488 shares of the business's stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $321.60, for a total transaction of $16,236,940.80. Following the sale, the insider owned 278,141 shares of the company's stock, valued at $89,450,145.60. The trade was a 15.36% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Charlie B. Kawwas sold 10,000 shares of the business's stock in a transaction on Wednesday, April 8th. The shares were sold at an average price of $345.23, for a total transaction of $3,452,300.00. Following the sale, the insider directly owned 787,184 shares in the company, valued at $271,759,532.32. The trade was a 1.25% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 324,282 shares of company stock worth $106,425,249. Company insiders own 1.90% of the company's stock.

Analysts Set New Price Targets

A number of equities analysts have recently weighed in on AVGO shares. Citigroup restated a "buy" rating and issued a $500.00 target price (up from $475.00) on shares of Broadcom in a research note on Tuesday, May 12th. Mizuho reaffirmed an "outperform" rating and issued a $480.00 price target on shares of Broadcom in a report on Thursday, April 16th. Weiss Ratings cut shares of Broadcom from a "buy (b-)" rating to a "hold (c+)" rating in a report on Friday, April 24th. Zacks Research cut shares of Broadcom from a "strong-buy" rating to a "hold" rating in a report on Thursday. Finally, Rosenblatt Securities reaffirmed a "buy" rating and issued a $500.00 price target on shares of Broadcom in a report on Tuesday, April 7th. One research analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $448.10.

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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