Gerber Kawasaki Wealth & Investment Management Boosts Stock Position in Broadcom Inc. $AVGO

Key Points

• Gerber Kawasaki Wealth & Investment Management increased its Broadcom stake by 23.3% in the fourth quarter, buying an additional 10,257 shares and bringing its total to 54,191 shares worth about $18.8 million.
• Wall Street remains broadly bullish on Broadcom despite mixed sentiment: the stock has one Strong Buy, 29 Buy ratings, and a consensus “Moderate Buy” rating with an average price target of $490.13.
• Broadcom’s latest quarter was strong, with EPS of $2.44 beating estimates and revenue rising 47.9% year over year to $22.19 billion; the company also declared a quarterly dividend of $0.65 per share.

Gerber Kawasaki Wealth & Investment Management raised its position in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 23.3% during the 4th quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 54,191 shares of the semiconductor manufacturer's stock after purchasing an additional 10,257 shares during the quarter. Gerber Kawasaki Wealth & Investment Management's holdings in Broadcom were worth $18,775,000 at the end of the most recent reporting period.

Several other large investors have also added to or reduced their stakes in the company. SVRN Asset Management LLC purchased a new stake in Broadcom during the 4th quarter valued at about $1,876,000. M1 Capital Management LLC grew its stake in Broadcom by 3.6% during the 4th quarter. M1 Capital Management LLC now owns 2,813 shares of the semiconductor manufacturer's stock valued at $973,000 after purchasing an additional 98 shares during the last quarter. Quadrant Capital Group LLC grew its stake in Broadcom by 3.0% during the 4th quarter. Quadrant Capital Group LLC now owns 129,718 shares of the semiconductor manufacturer's stock valued at $44,895,000 after purchasing an additional 3,818 shares during the last quarter. Livet Wealth LLC purchased a new stake in Broadcom during the 4th quarter valued at about $710,000. Finally, Douglass Winthrop Advisors LLC grew its stake in Broadcom by 5.6% during the 4th quarter. Douglass Winthrop Advisors LLC now owns 16,160 shares of the semiconductor manufacturer's stock valued at $5,593,000 after purchasing an additional 852 shares during the last quarter. Hedge funds and other institutional investors own 76.43% of the company's stock.

Analyst Ratings Changes

Several analysts have weighed in on AVGO shares. Zacks Research downgraded Broadcom from a "strong-buy" rating to a "hold" rating in a research note on Thursday, May 21st. DA Davidson boosted their price target on Broadcom from $375.00 to $400.00 and gave the company a "neutral" rating in a research note on Thursday, June 4th. Wall Street Zen upgraded Broadcom from a "hold" rating to a "buy" rating in a research note on Sunday, June 7th. Susquehanna restated a "positive" rating and issued a $490.00 target price (up from $450.00) on shares of Broadcom in a research note on Thursday, May 28th. Finally, Evercore restated an "outperform" rating and issued a $582.00 target price on shares of Broadcom in a research note on Tuesday, May 19th. One investment analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $490.13.

Insiders Place Their Bets

In related news, insider Mark David Brazeal sold 50,488 shares of the company's stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $321.60, for a total value of $16,236,940.80. Following the completion of the transaction, the insider owned 278,141 shares of the company's stock, valued at approximately $89,450,145.60. This represents a 15.36% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Kirsten M. Spears sold 36,292 shares of the company's stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $321.60, for a total value of $11,671,507.20. Following the completion of the transaction, the chief financial officer directly owned 327,760 shares of the company's stock, valued at $105,407,616. The trade was a 9.97% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 324,282 shares of company stock worth $106,425,249. 1.90% of the stock is owned by company insiders.

Broadcom Stock Down 0.9%

Shares of AVGO opened at $382.07 on Friday. Broadcom Inc. has a 52 week low of $244.17 and a 52 week 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 $1.82 trillion, a price-to-earnings ratio of 63.68, a PEG ratio of 0.68 and a beta of 1.41. The stock's 50-day moving average price is $404.26 and its 200-day moving average price is $363.33.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, topping analysts' consensus estimates of $2.40 by $0.04. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.The firm had revenue of $22.19 billion for the quarter, compared to the consensus estimate of $22.13 billion. During the same quarter in the prior year, the business earned $1.58 earnings per share. The company's revenue was up 47.9% compared to the same quarter last year. On average, sell-side analysts predict that Broadcom Inc. will post 10.24 EPS for the current year.

Broadcom Dividend Announcement

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

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s quarterly results were very strong, with revenue up 48% to a record $22.2 billion, semiconductor revenue up 79%, AI semiconductor revenue up 143% to $10.8 billion, and more than $30 billion in AI bookings, suggesting demand remains robust. Article Title
• Positive Sentiment: Several analysts and commentators argue the recent drop could be a buying opportunity, saying Broadcom remains a core infrastructure winner in AI and that Wall Street’s long-term outlook is still constructive. Article Title
• Positive Sentiment: Fresh coverage highlighted Broadcom as one of the stocks with catalysts heading into the second half of the year, and some analysts have raised earnings forecasts and price targets despite the selloff. Article Title
• Neutral Sentiment: Jim Cramer said Broadcom’s earnings were “not good” and suggested tech stocks are harder to trust as leadership names, reflecting a more cautious market mood around the stock. Article Title
• Neutral Sentiment: Broadcom also announced cash tender offers for certain outstanding debt securities, a routine balance-sheet move that is unlikely to move the stock by itself. Article Title
• Negative Sentiment: Market commentary says the stock is being punished because investors are nitpicking Broadcom’s AI outlook and pricing the shares as if growth must keep accelerating without any hiccups. Article Title
• Negative Sentiment: One note warned that Broadcom told investors to expect gross profit margins to continue falling, reinforcing concerns that profitability may soften even as revenue grows. Article Title

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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