Element Capital Management LLC Makes New $6.15 Million Investment in Broadcom Inc. $AVGO

Key Points

• Element Capital Management initiated a new position in Broadcom, buying 17,782 shares worth about $6.15 million. The stake represents roughly 2.9% of its portfolio and Broadcom is now its 12th-largest holding.
• Broadcom reported a strong quarterly update, with EPS of $2.44 topping estimates and revenue of $22.19 billion slightly ahead of forecasts. Revenue rose 47.9% year over year, underscoring continued momentum in the business.
• Despite the upbeat fundamentals, Broadcom saw notable insider selling and the stock traded around $392.90, below recent analyst targets. Wall Street remains constructive overall, with multiple firms raising price targets and consensus still at a Moderate Buy.

Element Capital Management LLC bought a new stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor bought 17,782 shares of the semiconductor manufacturer's stock, valued at approximately $6,154,000. Broadcom makes up approximately 2.9% of Element Capital Management LLC's portfolio, making the stock its 12th largest position.

A number of other institutional investors and hedge funds also recently modified their holdings of the business. ROSS JOHNSON & Associates LLC raised its stake 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 during the period. SWAN Capital LLC boosted its holdings in shares of Broadcom by 261.9% in the 4th quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer's stock worth $26,000 after buying an additional 55 shares during the last quarter. Miller Global Investments LLC bought a new position in Broadcom during the fourth quarter valued at about $31,000. Nvest Wealth Strategies Inc. purchased a new stake in Broadcom during the fourth quarter worth about $33,000. Finally, Family CFO Inc purchased a new stake in Broadcom during the fourth quarter worth about $35,000. 76.43% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at Broadcom

In related news, insider S. Ram Velaga sold 8,000 shares of the stock in a transaction dated 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 sale, the insider owned 57,932 shares of the company's stock, valued at approximately $21,464,964.64. This represents a 12.13% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Charlie B. Kawwas sold 10,000 shares of the firm's stock in a transaction dated Wednesday, April 8th. The stock was sold at an average price of $345.23, for a total value of $3,452,300.00. Following the completion of the transaction, the insider owned 787,184 shares of the company's stock, valued at approximately $271,759,532.32. This represents a 1.25% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 51,233 shares of company stock worth $18,125,134 in the last 90 days. 1.90% of the stock is owned by company insiders.

Broadcom Price Performance

AVGO opened at $392.90 on Thursday. The firm has a 50-day moving average price of $408.66 and a 200-day moving average price of $363.11. Broadcom Inc. has a twelve month low of $244.17 and a twelve month high of $495.00. The company has a quick ratio of 2.01, a current ratio of 2.24 and a debt-to-equity ratio of 0.71. The company has a market capitalization of $1.87 trillion, a price-to-earnings ratio of 65.48, a PEG ratio of 0.66 and a beta of 1.41.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its quarterly earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, beating analysts' consensus estimates of $2.40 by $0.04. The company had revenue of $22.19 billion for the quarter, compared to analysts' expectations of $22.13 billion. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. Broadcom's revenue was up 47.9% compared to the same quarter last year. During the same period in the prior year, the company posted $1.58 EPS. Equities analysts expect that Broadcom Inc. will post 10.24 EPS for the current year.

Broadcom Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Monday, June 22nd will be given a $0.65 dividend. The ex-dividend date is Monday, June 22nd. This represents a $2.60 annualized dividend and a dividend yield of 0.7%. Broadcom's payout ratio is 43.33%.

Analyst Ratings Changes

A number of research firms have weighed in on AVGO. Truist Financial boosted their target price on shares of Broadcom from $545.00 to $550.00 and gave the company a "buy" rating in a research note on Thursday, June 4th. Wells Fargo & Company restated an "overweight" rating and set a $545.00 price target (up from $430.00) on shares of Broadcom in a research note on Thursday, May 14th. Jefferies Financial Group set a $550.00 price target on shares of Broadcom and gave the stock a "buy" rating in a report on Thursday, June 4th. Oppenheimer reiterated an "outperform" rating and issued a $535.00 price objective (up from $450.00) on shares of Broadcom in a research note on Thursday, June 4th. Finally, Susquehanna reissued a "positive" rating and set a $490.00 price objective (up from $450.00) on shares of Broadcom in a report on Thursday, May 28th. One analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $490.13.

Key Headlines Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: JPMorgan reiterated a bullish stance on Broadcom, saying the market may be underestimating its long-term AI opportunity and calling the shares attractive at current levels. Barrons article
• Positive Sentiment: Other coverage highlighted Broadcom’s “massive AI pipeline” and the company’s growing role in AI infrastructure, reinforcing expectations for multi-year revenue growth. Benzinga article
• Positive Sentiment: Broadcom announced pricing terms for cash tender offers to repurchase portions of its outstanding debt, a move that can support balance-sheet management and financial flexibility. PR Newswire article
• Neutral Sentiment: Commentary on Broadcom’s latest quarter noted strong AI-chip demand and revenue growth, but also pointed to gross margin pressure and cautious guidance, which may be keeping some investors from getting more aggressive. Zacks article
• Negative Sentiment: Some broader AI-stock commentary has compared today’s AI capex boom to the dot-com era, renewing valuation and cycle-risk concerns across the sector that could weigh on sentiment for AVGO. 247WallSt article

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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