Fullerton Advisors LLC Takes $680,000 Position in Broadcom Inc. $AVGO

Key Points

• Fullerton Advisors LLC disclosed a new fourth-quarter stake in Broadcom, buying 1,964 shares worth about $680,000.
• Broadcom’s latest earnings beat expectations, with EPS of $2.05 and revenue of $19.31 billion, while quarterly revenue rose 29.5% year over year.
• Investor sentiment remains mixed: analysts still rate Broadcom a Moderate Buy with a consensus target of $435.30, but reports that OpenAI’s planned $18 billion custom chip deal hit a financing snag have pressured the stock.

Fullerton Advisors LLC acquired a new stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) in the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm acquired 1,964 shares of the semiconductor manufacturer's stock, valued at approximately $680,000.

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

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

Broadcom Stock Performance

NASDAQ AVGO opened at $430.00 on Monday. The company's 50 day moving average is $352.89 and its 200-day moving average is $351.28. Broadcom Inc. has a 12-month low of $206.52 and a 12-month high of $437.68. 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 $2.04 trillion, a P/E ratio of 83.98, a price-to-earnings-growth ratio of 0.89 and a beta of 1.43.

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 (EPS) for the quarter, beating the consensus estimate of $2.03 by $0.02. Broadcom had a net margin of 36.57% and a return on equity of 38.61%. The company had revenue of $19.31 billion for the quarter, compared to analyst estimates of $19.10 billion. During the same quarter in the previous year, the firm posted $1.60 earnings per share. The company's quarterly revenue was up 29.5% compared to the same quarter last year. Sell-side analysts predict that Broadcom Inc. will post 9.95 earnings per share for the current year.

Broadcom Dividend Announcement

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

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on AVGO shares. Wells Fargo & Company upgraded shares of Broadcom from an "equal weight" rating to an "overweight" rating and boosted their price target for the stock from $410.00 to $430.00 in a report on Thursday, January 15th. JPMorgan Chase & Co. boosted their price target on shares of Broadcom from $475.00 to $500.00 and gave the stock an "overweight" rating in a report on Thursday, March 5th. Mizuho restated an "outperform" rating and set a $480.00 price target on shares of Broadcom in a report on Thursday, April 16th. Royal Bank Of Canada cut their price target on shares of Broadcom from $370.00 to $340.00 and set a "sector perform" rating on the stock in a report on Monday, March 2nd. Finally, Wolfe Research upgraded shares of Broadcom from a "peer perform" rating to an "outperform" rating and set a $400.00 price target on the stock in a report on Friday, January 30th. Two equities research 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. According to data from MarketBeat, Broadcom presently has an average rating of "Moderate Buy" and a consensus target price of $435.30.

Insider Buying and Selling

In other news, insider Charlie B. Kawwas sold 10,000 shares of the business's 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 sale, the insider owned 787,184 shares of the company's stock, valued at $271,759,532.32. The trade was a 1.25% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider S. Ram Velaga sold 8,000 shares of the business's stock in a transaction that occurred on Friday, April 10th. The shares were sold at an average price of $370.52, for a total transaction of $2,964,160.00. Following the completion of the sale, the insider directly owned 57,932 shares in the company, valued at approximately $21,464,964.64. This trade represents a 12.13% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 324,282 shares of company stock valued at $106,425,249. Corporate insiders own 1.90% of the company's stock.

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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