Drive Wealth Management LLC Buys 2,397 Shares of Broadcom Inc. $AVGO

Key Points

• Drive Wealth Management LLC increased its Broadcom stake by 16.4% in the fourth quarter, buying 2,397 shares and bringing its total holding to 17,000 shares valued at about $5.88 million.
• Broadcom reported better-than-expected quarterly results, with EPS of $2.05 and revenue of $19.31 billion, while revenue rose 29.5% year over year. The company also pays a quarterly dividend of $0.65 per share, or $2.60 annually.
• Wall Street remains largely optimistic on AVGO, with several analysts raising price targets and the stock carrying a Moderate Buy consensus rating and a $441.63 target price. However, the article also notes insider selling and some caution that AI-related stocks may be getting crowded.

Drive Wealth Management LLC grew its stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 16.4% during the fourth quarter, according to the company in its most recent disclosure with the SEC. The fund owned 17,000 shares of the semiconductor manufacturer's stock after buying an additional 2,397 shares during the quarter. Broadcom makes up 1.1% of Drive Wealth Management LLC's holdings, making the stock its 20th biggest holding. Drive Wealth Management LLC's holdings in Broadcom were worth $5,884,000 as of its most recent filing with the SEC.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Miller Global Investments LLC bought a new stake in shares of Broadcom during the fourth quarter worth $31,000. JCIC Asset Management Inc. bought a new stake in shares of Broadcom during the third quarter worth $31,000. Nvest Wealth Strategies Inc. bought a new stake in shares of Broadcom during the fourth quarter worth $33,000. Family CFO Inc bought a new stake in shares of Broadcom during the fourth quarter worth $35,000. Finally, Manning & Napier Advisors LLC bought a new stake in shares of Broadcom during the third quarter worth $34,000. Institutional investors own 76.43% of the company's stock.

Broadcom Price Performance

AVGO stock opened at $425.19 on Friday. The company has a quick ratio of 1.73, a current ratio of 1.90 and a debt-to-equity ratio of 0.80. The firm has a market cap of $2.01 trillion, a price-to-earnings ratio of 83.05, a PEG ratio of 0.88 and a beta of 1.43. The company's fifty day simple moving average is $365.61 and its 200 day simple moving average is $354.62. Broadcom Inc. has a 12-month low of $221.60 and a 12-month high of $442.36.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its quarterly 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. The business had revenue of $19.31 billion for the quarter, compared to analysts' expectations of $19.10 billion. Broadcom had a net margin of 36.57% and a return on equity of 38.61%. The business's quarterly revenue was up 29.5% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.60 earnings per share. On average, 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 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 dividend payout ratio is 50.78%.

Wall Street Analyst Weigh In

Several analysts recently weighed in on AVGO shares. Morgan Stanley boosted their price objective on shares of Broadcom from $462.00 to $470.00 and gave the stock an "overweight" rating in a research note on Friday, March 6th. Mizuho reissued an "outperform" rating and issued a $480.00 price objective on shares of Broadcom in a research note on Thursday, April 16th. Citigroup reissued a "buy" rating and issued a $500.00 price objective (up from $475.00) on shares of Broadcom in a research note on Tuesday. Erste Group Bank cut shares of Broadcom from a "buy" rating to a "hold" rating in a research note on Thursday, April 2nd. Finally, DA Davidson raised shares of Broadcom to a "hold" rating in a research note on Friday, February 13th. Two research analysts have rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $441.63.

Key Stories Impacting Broadcom

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.

Insider Buying and Selling at Broadcom

In other Broadcom news, Director Justine Page sold 2,018 shares of the company's stock in a transaction on Wednesday, April 8th. The shares were sold at an average price of $353.00, for a total transaction of $712,354.00. Following the sale, the director owned 18,164 shares of the company's stock, valued at approximately $6,411,892. This represents a 10.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Mark David Brazeal sold 50,488 shares of the company'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 directly owned 278,141 shares in the company, valued at $89,450,145.60. This trade represents a 15.36% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 324,282 shares of company stock valued at $106,425,249. 1.90% of the stock is owned by corporate insiders.

About Broadcom

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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