Ebert Capital Management Inc. Purchases Shares of 2,275 Broadcom Inc. $AVGO

Key Points

• Ebert Capital Management initiated a new stake in Broadcom during the fourth quarter, buying 2,275 shares worth about $754,000. The position represents roughly 0.7% of its portfolio and is its 17th-largest holding.
• Broadcom continues to attract major institutional interest, with firms like Vanguard, Invesco, Legal & General, Franklin Resources, and Amundi all increasing their positions. Institutional investors and hedge funds now own 76.43% of the stock.
• The company reported strong quarterly results, with EPS of $2.05 and revenue of $19.31 billion, both slightly above expectations. Revenue rose 29.5% year over year, while analysts remain broadly positive on the stock, supported by ongoing AI-related optimism.

Ebert Capital Management Inc. purchased a new stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) in the fourth quarter, according to its most recent disclosure with the SEC. The firm purchased 2,275 shares of the semiconductor manufacturer's stock, valued at approximately $754,000. Broadcom makes up approximately 0.7% of Ebert Capital Management Inc.'s investment portfolio, making the stock its 17th biggest position.

Several other hedge funds and other institutional investors have also modified their holdings of the business. Vanguard Group Inc. boosted its position in shares of Broadcom by 0.8% in the fourth quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer's stock worth $167,064,997,000 after buying an additional 3,919,715 shares during the period. Invesco Ltd. increased its stake in shares of Broadcom by 1.8% in the third quarter. Invesco Ltd. now owns 39,149,651 shares of the semiconductor manufacturer's stock worth $12,915,861,000 after purchasing an additional 700,021 shares during the period. Legal & General Group Plc increased its stake in shares of Broadcom by 2.3% in the third quarter. Legal & General Group Plc now owns 33,450,786 shares of the semiconductor manufacturer's stock worth $11,035,749,000 after purchasing an additional 748,709 shares during the period. Franklin Resources Inc. increased its stake in shares of Broadcom by 4.0% in the third quarter. Franklin Resources Inc. now owns 29,511,195 shares of the semiconductor manufacturer's stock worth $9,736,038,000 after purchasing an additional 1,124,590 shares during the period. Finally, Amundi increased its stake in shares of Broadcom by 3.3% in the third quarter. Amundi now owns 22,216,816 shares of the semiconductor manufacturer's stock worth $7,453,320,000 after purchasing an additional 716,523 shares during the period. Institutional investors and hedge funds own 76.43% of the company's stock.

Broadcom Trading Down 3.3%

Shares of NASDAQ:AVGO opened at $425.19 on Friday. Broadcom Inc. has a 52-week low of $221.60 and a 52-week high of $442.36. The company has a market capitalization of $2.01 trillion, a P/E ratio of 83.05, a price-to-earnings-growth ratio of 0.91 and a beta of 1.43. The company has a 50-day simple moving average of $365.61 and a 200 day simple moving average of $354.62. The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.73 and a current ratio of 1.90.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its quarterly earnings data 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. The firm had revenue of $19.31 billion during 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%. The business's revenue for the quarter was up 29.5% compared to the same quarter last year. During the same period last year, the business posted $1.60 earnings per share. Sell-side analysts forecast that Broadcom Inc. will post 9.95 earnings per share for the current year.

Broadcom Dividend Announcement

The business also recently disclosed 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 was Monday, March 23rd. This represents a $2.60 annualized dividend and a yield of 0.6%. Broadcom's dividend payout ratio (DPR) is 50.78%.

Insider Activity

In other news, insider Charlie B. Kawwas sold 10,000 shares of Broadcom stock in a transaction that occurred on Wednesday, April 8th. The shares were sold at an average price of $345.23, for a total value of $3,452,300.00. Following the completion of the sale, the insider directly owned 787,184 shares in the company, valued at approximately $271,759,532.32. The trade was a 1.25% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Mark David Brazeal sold 50,488 shares of Broadcom stock in a transaction that occurred 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 completion of the sale, the insider owned 278,141 shares of the company's stock, valued at approximately $89,450,145.60. The trade was a 15.36% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 324,282 shares of company stock valued at $106,425,249. Company insiders own 1.90% of the company's stock.

Broadcom News Roundup

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.

Wall Street Analyst Weigh In

A number of research firms recently weighed in on AVGO. Benchmark reissued a "buy" rating and set a $485.00 target price on shares of Broadcom in a research report on Thursday, March 5th. Royal Bank Of Canada dropped their price objective on shares of Broadcom from $370.00 to $340.00 and set a "sector perform" rating for the company in a research report on Monday, March 2nd. Zacks Research upgraded shares of Broadcom from a "hold" rating to a "strong-buy" rating in a research report on Thursday, April 2nd. Wolfe Research upgraded shares of Broadcom from a "peer perform" rating to an "outperform" rating and set a $400.00 target price for the company in a research report on Friday, January 30th. Finally, Citigroup reiterated a "buy" rating and set a $500.00 target price (up from $475.00) on shares of Broadcom in a research report on Tuesday. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat.com, Broadcom currently has a consensus rating of "Moderate Buy" and an average target price of $441.63.

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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