CX Institutional Has $25.98 Million Stock Position in Broadcom Inc. $AVGO

Key Points

• CX Institutional raised its Broadcom stake by 1.7% in the fourth quarter, bringing its holdings to 75,050 shares worth about $25.98 million.
• Broadcom reported strong quarterly results, with EPS of $2.05 and revenue of $19.31 billion, both topping analyst expectations. Revenue also rose 29.5% year over year.
• Despite the positive earnings, Broadcom faces some investor caution after reports that OpenAI’s planned $18 billion custom chip deal hit financing issues, potentially affecting a key AI growth driver.

CX Institutional increased its position in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 1.7% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 75,050 shares of the semiconductor manufacturer's stock after purchasing an additional 1,247 shares during the quarter. CX Institutional's holdings in Broadcom were worth $25,975,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. JCIC Asset Management Inc. acquired a new stake in Broadcom in the third quarter worth about $31,000. Miller Global Investments LLC acquired a new stake in Broadcom in the fourth quarter worth about $31,000. Nvest Wealth Strategies Inc. acquired a new stake in Broadcom in the fourth quarter worth about $33,000. Manning & Napier Advisors LLC acquired a new stake in Broadcom in the third quarter worth about $34,000. Finally, Family CFO Inc acquired a new stake in Broadcom in the fourth quarter worth about $35,000. 76.43% of the stock is currently owned by institutional investors and hedge funds.

Insiders Place Their Bets

In other news, insider Charlie B. Kawwas sold 10,000 shares of Broadcom stock in a transaction dated Wednesday, April 8th. The stock was sold at an average price of $345.23, for a total transaction of $3,452,300.00. Following the transaction, the insider owned 787,184 shares in the company, valued at $271,759,532.32. The trade was a 1.25% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Justine Page sold 2,018 shares of Broadcom stock in a transaction dated Wednesday, April 8th. The shares were sold at an average price of $353.00, for a total value of $712,354.00. Following the transaction, the director owned 18,164 shares in the company, valued at $6,411,892. This trade represents a 10.00% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 324,282 shares of company stock worth $106,425,249 over the last ninety days. Company insiders own 1.90% of the company's stock.

Broadcom Stock Performance

Shares of NASDAQ:AVGO opened at $430.00 on Friday. The company has a market capitalization of $2.04 trillion, a price-to-earnings ratio of 83.98, a P/E/G ratio of 0.89 and a beta of 1.43. The firm's 50 day simple moving average is $352.89 and its 200 day simple moving average is $351.28. The company has a debt-to-equity ratio of 0.80, a current ratio of 1.90 and a quick ratio of 1.73. Broadcom Inc. has a fifty-two week low of $206.52 and a fifty-two week high of $437.68.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its quarterly earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share for the quarter, beating analysts' consensus estimates of $2.03 by $0.02. The business had revenue of $19.31 billion for the quarter, compared to the consensus estimate of $19.10 billion. Broadcom had a net margin of 36.57% and a return on equity of 38.61%. Broadcom's revenue for the quarter was up 29.5% on a year-over-year basis. During the same period last year, the company posted $1.60 EPS. As a group, sell-side analysts forecast 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. Investors 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 (DPR) is currently 50.78%.

Analyst Ratings Changes

A number of analysts recently commented on the company. Rosenblatt Securities reiterated a "buy" rating and issued a $500.00 price objective on shares of Broadcom in a research report on Tuesday, April 7th. Royal Bank Of Canada lowered their price objective on Broadcom from $370.00 to $340.00 and set a "sector perform" rating for the company in a research report on Monday, March 2nd. Wolfe Research upgraded Broadcom from a "peer perform" rating to an "outperform" rating and set a $400.00 price objective for the company in a research report on Friday, January 30th. Benchmark reiterated a "buy" rating and issued a $485.00 price objective on shares of Broadcom in a research report on Thursday, March 5th. Finally, Truist Financial lifted their price objective on Broadcom from $510.00 to $545.00 and gave the stock a "buy" rating in a research report on Thursday, March 5th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $435.30.

Key Stories Impacting Broadcom

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 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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