Hardy Reed LLC Increases Stock Holdings in Broadcom Inc. $AVGO

Key Points

• Hardy Reed LLC increased its Broadcom stake by 16.6% in the first quarter, buying 2,236 additional shares and bringing its total holding to 15,716 shares worth about $4.86 million.
• Broadcom’s latest quarterly results beat expectations, with $2.44 EPS on revenue of $22.19 billion, up 47.9% year over year. The company also continued its dividend with a quarterly payout of $0.65 per share.
• Analyst sentiment remains broadly positive, with multiple firms reiterating buy ratings and lifting price targets; the consensus view is now a Moderate Buy with an average target of $493.24.

Hardy Reed LLC boosted its stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 16.6% during the first quarter, according to its most recent 13F filing with the SEC. The firm owned 15,716 shares of the semiconductor manufacturer's stock after acquiring an additional 2,236 shares during the quarter. Hardy Reed LLC's holdings in Broadcom were worth $4,864,000 as of its most recent filing with the SEC.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in the stock. ROSS JOHNSON & Associates LLC raised its stake in Broadcom by 1,320.0% in the 4th quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer's stock valued at $25,000 after purchasing an additional 66 shares during the last quarter. SWAN Capital LLC grew its holdings in shares of Broadcom by 261.9% during the fourth quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer's stock worth $26,000 after buying an additional 55 shares in the last quarter. Networth Advisors LLC grew its holdings in shares of Broadcom by 546.2% during the first quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer's stock worth $26,000 after buying an additional 71 shares in the last quarter. Miller Global Investments LLC acquired a new stake in shares of Broadcom in the fourth quarter valued at about $31,000. Finally, Nvest Wealth Strategies Inc. acquired a new stake in shares of Broadcom in the fourth quarter valued at about $33,000. 76.43% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of equities analysts recently weighed in on AVGO shares. Mizuho boosted their price target on shares of Broadcom from $480.00 to $530.00 and gave the stock an "outperform" rating in a research report on Thursday, June 4th. Citigroup reissued a "buy" rating on shares of Broadcom in a research note on Thursday, June 4th. UBS Group set a $485.00 target price on Broadcom and gave the stock a "buy" rating in a report on Thursday, June 4th. Wall Street Zen upgraded Broadcom from a "buy" rating to a "strong-buy" rating in a research report on Wednesday, July 1st. Finally, Cantor Fitzgerald reaffirmed an "overweight" rating and issued a $525.00 price target on shares of Broadcom in a report on Thursday, June 4th. One investment analyst has rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $493.24.

Broadcom Trading Up 3.2%

AVGO opened at $401.11 on Friday. The business's 50 day moving average price is $405.40 and its 200 day moving average price is $363.87. The company has a debt-to-equity ratio of 0.71, a quick ratio of 2.01 and a current ratio of 2.24. The stock has a market capitalization of $1.91 trillion, a PE ratio of 66.85, a P/E/G ratio of 0.68 and a beta of 1.45. Broadcom Inc. has a one year low of $269.58 and a one year high of $495.00.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its 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. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.The company had revenue of $22.19 billion for the quarter, compared to the consensus estimate of $22.13 billion. During the same quarter in the previous year, the business earned $1.58 earnings per share. The company's revenue for the quarter was up 47.9% on a year-over-year basis. As a group, equities research analysts expect that Broadcom Inc. will post 10.24 EPS for the current year.

Broadcom Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 22nd were issued a $0.65 dividend. This represents a $2.60 annualized dividend and a yield of 0.6%. The ex-dividend date was Monday, June 22nd. Broadcom's payout ratio is 43.33%.

Insider Activity at Broadcom

In related news, Director Harry L. You bought 1,000 shares of the stock in a transaction on Thursday, June 11th. The stock was bought at an average price of $373.57 per share, with a total value of $373,570.00. Following the completion of the purchase, the director directly owned 38,466 shares in the company, valued at $14,369,743.62. This represents a 2.67% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, Director Justine Page sold 1,602 shares of Broadcom stock in a transaction dated Monday, June 29th. The shares were sold at an average price of $373.86, for a total transaction of $598,923.72. Following the sale, the director owned 17,426 shares of the company's stock, valued at approximately $6,514,884.36. This represents a 8.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 9,754 shares of company stock worth $3,774,846. Company insiders own 1.90% of the company's stock.

Key Stories Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Apple’s multiyear agreement to buy more than $30 billion of Broadcom chips through 2031 reinforces demand for Broadcom’s custom silicon and U.S. manufacturing strategy. Reuters: Apple to spend $30 billion in Broadcom chips deal that will see Colorado factory expand
• Positive Sentiment: Wall Street remains upbeat on Broadcom’s AI chip momentum, with Jefferies reiterating a Buy rating and a $550 price target on improving AI-related growth prospects. Broadcom’s (AVGO) AI Chip Momentum Keeps Wall Street Bullish
• Positive Sentiment: Broader semiconductor sentiment improved as the AI trade rebounded, with analysts and market commentators viewing the recent selloff as a buying opportunity for chip stocks like Broadcom. Broadcom, Intel, Corning, Marvell, and More Stocks That Explain Today's Market
• Neutral Sentiment: Zacks highlighted Broadcom as a dividend-paying AI infrastructure name, underscoring its mix of income and AI exposure, but this was more of a stock-picking view than a new company-specific catalyst. These Dividend Paying Stocks Offer Strong Exposure to AI Trends
• Negative Sentiment: Erste Group downgraded Broadcom to Hold, citing valuation concerns, which may temper some of the enthusiasm after the recent rally. Erste Group downgrades Broadcom to Hold citing valuation concerns

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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