Hilton Head Capital Partners LLC Purchases Shares of 6,636 Broadcom Inc. $AVGO

Key Points

• Hilton Head Capital Partners initiated a new position in Broadcom, buying 6,636 shares worth about $2.3 million in the fourth quarter. The stake represents 1.3% of its portfolio and Broadcom is now its 14th-largest holding.
• Wall Street remains broadly positive on Broadcom, with most analysts rating the stock a Buy and a consensus target price of about $490.13. Recent firms including TD Cowen, Bank of America, Evercore, and Oppenheimer all reaffirmed or raised bullish targets.
• Broadcom posted strong quarterly results, beating EPS and revenue expectations with revenue up 47.9% year over year. The company also declared a quarterly dividend of $0.65 per share, payable June 30.

Hilton Head Capital Partners LLC purchased a new stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) during the 4th quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm purchased 6,636 shares of the semiconductor manufacturer's stock, valued at approximately $2,297,000. Broadcom accounts for 1.3% of Hilton Head Capital Partners LLC's investment portfolio, making the stock its 14th biggest holding.

Other large investors also recently made changes to their positions in the company. Miller Global Investments LLC acquired a new stake in shares of Broadcom in the fourth quarter valued at approximately $31,000. Nvest Wealth Strategies Inc. acquired a new stake in shares of Broadcom in the fourth quarter valued at approximately $33,000. Family CFO Inc acquired a new stake in shares of Broadcom in the fourth quarter valued at approximately $35,000. PayPay Securities Corp increased its stake in shares of Broadcom by 88.9% in the fourth quarter. PayPay Securities Corp now owns 119 shares of the semiconductor manufacturer's stock valued at $41,000 after purchasing an additional 56 shares during the period. Finally, Cherry Tree Wealth Management LLC increased its stake in shares of Broadcom by 44.9% in the fourth quarter. Cherry Tree Wealth Management LLC now owns 129 shares of the semiconductor manufacturer's stock valued at $45,000 after purchasing an additional 40 shares during the period. Institutional investors and hedge funds own 76.43% of the company's stock.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on AVGO shares. TD Cowen restated a "buy" rating and issued a $500.00 price target on shares of Broadcom in a research note on Thursday, June 4th. Seaport Research Partners reiterated a "neutral" rating on shares of Broadcom in a research note on Wednesday, April 8th. Evercore reiterated an "outperform" rating and set a $582.00 price objective on shares of Broadcom in a research note on Tuesday, May 19th. Bank of America raised their price objective on shares of Broadcom from $450.00 to $530.00 and gave the company a "buy" rating in a research note on Thursday, June 4th. Finally, Oppenheimer reiterated an "outperform" rating and set a $535.00 price objective (up from $450.00) on shares of Broadcom in a research note on Thursday, June 4th. One research analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, Broadcom has a consensus rating of "Moderate Buy" and a consensus target price of $490.13.

Insider Activity

In related news, insider Mark David Brazeal sold 50,488 shares of the firm's stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $321.60, for a total transaction of $16,236,940.80. Following the completion of the sale, the insider directly owned 278,141 shares in the company, valued at approximately $89,450,145.60. This trade represents a 15.36% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider S. Ram Velaga sold 8,000 shares of the firm's stock in a transaction that occurred on 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 $21,464,964.64. The trade was a 12.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 324,282 shares of company stock valued at $106,425,249 in the last ninety days. 1.90% of the stock is owned by company insiders.

Broadcom Price Performance

NASDAQ AVGO opened at $372.10 on Thursday. Broadcom Inc. has a 12 month low of $243.80 and a 12 month high of $495.00. The company has a debt-to-equity ratio of 0.71, a current ratio of 2.24 and a quick ratio of 2.01. The firm has a market capitalization of $1.76 trillion, a PE ratio of 62.02, a P/E/G ratio of 0.71 and a beta of 1.41. The company's 50 day simple moving average is $401.36 and its 200 day simple moving average is $362.87.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its quarterly earnings data 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 net margin of 38.85% and a return on equity of 41.61%. The business had revenue of $22.19 billion for the quarter, compared to analyst estimates of $22.13 billion. During the same quarter last year, the business earned $1.58 earnings per share. The business's revenue for the quarter was up 47.9% on a year-over-year basis. As a group, equities research analysts forecast that Broadcom Inc. will post 9.97 EPS for the current fiscal year.

Broadcom Dividend Announcement

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

Broadcom News Roundup

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Several analysts and commentators argue the pullback is overdone, pointing to Broadcom’s strong fundamentals: revenue growth of about 48%, AI semiconductor revenue up 143%, and more than $30 billion in AI bookings. Bullish pieces say the stock looks attractive on cash flow and long-term AI demand. Article Title
• Positive Sentiment: Broadcom also gained support from a major AI infrastructure tie-up with Apollo Global Management and Blackstone, which are backing a $35 billion capacity expansion for Anthropic using Broadcom’s custom chips and networking gear. That reinforces the company’s role in the AI buildout. Article Title
• Neutral Sentiment: Some analysts remain constructive on the stock over the long term, citing expected EPS growth of more than 50% over the next five years and multiple recent upgrades/price-target increases. Article Title
• Neutral Sentiment: Other coverage highlights a “buy the dip” case after the post-earnings reset, with investors watching whether AI demand and margins stay strong enough to justify the premium valuation. Article Title
• Negative Sentiment: The main headwind is that Broadcom’s stock has been hit by a broader chip rotation/correction, with semiconductor names sold off as investors take profits from the AI trade. Broadcom has been singled out as one of the biggest laggards in that move. Article Title
• Negative Sentiment: Investors are also worried that Broadcom’s premium valuation leaves little room for error after its strong quarter, especially as guidance for AI revenue was viewed as less aggressive than hoped. Article Title
• Negative Sentiment: New commentary from Broadcom’s CEO that the company will focus only on chips, not a broader AI platform strategy, appears to have unnerved some AI-focused investors and added to the selloff. Article Title

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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