Everest Management Corp. Reduces Position in Broadcom Inc. $AVGO

Key Points

• Everest Management Corp. cut its Broadcom stake by 23.3% in the fourth quarter, selling 3,295 shares and ending with 10,853 shares worth about $3.76 million.
• Broadcom is facing fresh investor concern after reports said OpenAI’s planned $18 billion custom chip deal hit a financing snag, potentially clouding a key AI revenue opportunity.
• Despite that pressure, Broadcom recently posted strong quarterly results, with EPS and revenue both topping expectations, and analysts still rate the stock a Moderate Buy overall.

Everest Management Corp. lessened its position in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 23.3% during the fourth quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 10,853 shares of the semiconductor manufacturer's stock after selling 3,295 shares during the quarter. Broadcom comprises 2.1% of Everest Management Corp.'s investment portfolio, making the stock its 12th biggest holding. Everest Management Corp.'s holdings in Broadcom were worth $3,756,000 at the end of the most recent quarter.

Other hedge funds have also recently added to or reduced their stakes in the company. JCIC Asset Management Inc. purchased a new position in Broadcom during the 3rd quarter worth approximately $31,000. Miller Global Investments LLC purchased a new position in shares of Broadcom in the 4th quarter valued at approximately $31,000. Nvest Wealth Strategies Inc. purchased a new position in shares of Broadcom in the 4th quarter valued at approximately $33,000. Manning & Napier Advisors LLC purchased a new position in shares of Broadcom in the 3rd quarter valued at approximately $34,000. Finally, Family CFO Inc purchased a new position in shares of Broadcom in the 4th quarter valued at approximately $35,000. Hedge funds and other institutional investors own 76.43% of the company's stock.

Trending Headlines about 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

Wall Street Analyst Weigh In

AVGO has been the topic of several analyst reports. Zacks Research upgraded Broadcom from a "hold" rating to a "strong-buy" rating in a research note on Thursday, April 2nd. Truist Financial lifted their target price on Broadcom from $510.00 to $545.00 and gave the company a "buy" rating in a research note on Thursday, March 5th. Wolfe Research upgraded Broadcom from a "peer perform" rating to an "outperform" rating and set a $400.00 target price on the stock in a research note on Friday, January 30th. Wells Fargo & Company upgraded Broadcom from an "equal weight" rating to an "overweight" rating and lifted their target price for the company from $410.00 to $430.00 in a research note on Thursday, January 15th. Finally, Weiss Ratings downgraded Broadcom from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday, April 24th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $435.30.

Insider Transactions at Broadcom

In related news, Director Gayla J. Delly sold 1,000 shares of Broadcom stock in a transaction that occurred on Thursday, April 9th. The stock was sold at an average price of $358.31, for a total value of $358,310.00. Following the sale, the director directly owned 32,352 shares in the company, valued at $11,592,045.12. The trade was a 3.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Justine Page sold 2,018 shares of Broadcom stock in a transaction that occurred on Wednesday, April 8th. The shares were sold at an average price of $353.00, for a total value of $712,354.00. Following the completion of the sale, the director owned 18,164 shares in the company, valued at approximately $6,411,892. This trade represents a 10.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 324,282 shares of company stock valued at $106,425,249. 1.90% of the stock is owned by company insiders.

Broadcom Stock Up 4.2%

Broadcom stock opened at $430.00 on Friday. 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 1-year low of $206.52 and a 1-year high of $437.68. The company has a market cap of $2.04 trillion, a PE ratio of 83.98, a price-to-earnings-growth ratio of 0.85 and a beta of 1.43. The stock's 50 day moving average price is $352.89 and its 200 day moving average price is $351.28.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted 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. Broadcom had a return on equity of 38.61% and a net margin of 36.57%.The firm had revenue of $19.31 billion for the quarter, compared to the consensus estimate of $19.10 billion. During the same period in the previous year, the business earned $1.60 earnings per share. The company's revenue for the quarter was up 29.5% compared to the same quarter last year. On average, sell-side analysts predict that Broadcom Inc. will post 9.95 EPS for the current fiscal year.

Broadcom Dividend Announcement

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

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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