Horizon Investments LLC Sells 4,058 Shares of Broadcom Inc. $AVGO

Key Points

• Horizon Investments LLC trimmed its Broadcom stake by 1.1% in the fourth quarter, selling 4,058 shares and ending with 366,916 shares valued at about $127 million.
• Broadcom is facing investor concern after reports said OpenAI’s planned $18 billion custom chip deal hit a financing snag, raising questions about a key AI growth opportunity.
• Despite that headline risk, analysts remain broadly constructive on AVGO, and the company recently posted better-than-expected quarterly results with revenue up 29.5% year over year and earnings ahead of estimates.

Horizon Investments LLC cut its position in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 1.1% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 366,916 shares of the semiconductor manufacturer's stock after selling 4,058 shares during the quarter. Broadcom comprises about 1.6% of Horizon Investments LLC's holdings, making the stock its 13th largest position. Horizon Investments LLC's holdings in Broadcom were worth $126,990,000 at the end of the most recent reporting period.

Several other hedge funds have also recently made changes to their positions in AVGO. JCIC Asset Management Inc. bought a new stake in shares of Broadcom in the third quarter valued at $31,000. Miller Global Investments LLC bought a new stake in shares of Broadcom in the fourth quarter valued at $31,000. Nvest Wealth Strategies Inc. bought a new stake in shares of Broadcom in the fourth quarter valued at $33,000. Manning & Napier Advisors LLC bought a new stake in shares of Broadcom in the third quarter valued at $34,000. Finally, Family CFO Inc purchased a new position in shares of Broadcom in the fourth quarter valued at $35,000. 76.43% of the stock is currently owned by institutional investors.

More Broadcom News

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

Analyst Ratings Changes

AVGO has been the subject of several recent research reports. Benchmark reiterated a "buy" rating and issued a $485.00 price target on shares of Broadcom in a research report on Thursday, March 5th. Wells Fargo & Company upgraded Broadcom from an "equal weight" rating to an "overweight" rating and lifted their price target for the company from $410.00 to $430.00 in a research report on Thursday, January 15th. Mizuho reiterated an "outperform" rating and issued a $480.00 price target on shares of Broadcom in a research report on Thursday, April 16th. JPMorgan Chase & Co. lifted their price target on Broadcom from $475.00 to $500.00 and gave the company an "overweight" rating in a research report on Thursday, March 5th. Finally, Zacks Research upgraded Broadcom from a "hold" rating to a "strong-buy" rating in a research report on Thursday, April 2nd. Two research analysts have rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $435.30.

Broadcom Price Performance

AVGO opened at $430.00 on Friday. The stock has a 50-day moving average price of $352.89 and a 200-day moving average price of $351.28. Broadcom Inc. has a 12-month low of $206.52 and a 12-month high of $437.68. The company has a current ratio of 1.90, a quick ratio of 1.73 and a debt-to-equity ratio of 0.80. The stock has a market capitalization of $2.04 trillion, a P/E ratio of 83.98, a PEG ratio of 0.85 and a beta of 1.43.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its quarterly earnings data on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share (EPS) for the quarter, topping 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 during the quarter, compared to analysts' expectations of $19.10 billion. During the same period in the prior year, the business earned $1.60 EPS. The company's revenue for the quarter was up 29.5% compared to the same quarter last year. Equities analysts predict that Broadcom Inc. will post 9.95 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

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

Insider Buying and Selling

In other news, insider S. Ram Velaga sold 8,000 shares of the business's stock in a transaction dated Friday, April 10th. The stock was sold at an average price of $370.52, for a total value of $2,964,160.00. Following the completion of the sale, the insider owned 57,932 shares of the company's stock, valued at approximately $21,464,964.64. The trade was a 12.13% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Gayla J. Delly sold 1,000 shares of the business's stock in a transaction dated Thursday, April 9th. The shares were sold at an average price of $358.31, for a total value of $358,310.00. Following the completion of the sale, the director directly owned 32,352 shares of the company's stock, valued at approximately $11,592,045.12. This trade represents a 3.00% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 324,282 shares of company stock worth $106,425,249 in the last 90 days. 1.90% of the stock is currently owned by company insiders.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.