Howe & Rusling Inc. Decreases Stock Position in Broadcom Inc. $AVGO

Key Points

• Howe & Rusling Inc. cut its Broadcom stake by 4.7% in the first quarter, selling 8,046 shares and leaving it with 161,641 shares worth about $50.0 million. Broadcom remains a major holding for the firm, representing 3.3% of its portfolio.
• Broadcom is benefiting from major bullish catalysts, especially Apple’s $30 billion-plus chip commitment, which is expected to strengthen long-term revenue visibility and support its AI/custom silicon growth narrative. The news has helped keep sentiment around AVGO positive despite some mixed analyst views.
• Analysts remain broadly constructive on the stock, with several firms recently raising price targets and maintaining buy/overweight ratings. Broadcom also beat quarterly earnings and revenue expectations, reporting $2.44 EPS on $22.19 billion in revenue, both ahead of estimates.

Howe & Rusling Inc. decreased its stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 4.7% during the first quarter, according to its most recent filing with the SEC. The institutional investor owned 161,641 shares of the semiconductor manufacturer's stock after selling 8,046 shares during the period. Broadcom accounts for 3.3% of Howe & Rusling Inc.'s investment portfolio, making the stock its 6th largest position. Howe & Rusling Inc.'s holdings in Broadcom were worth $50,029,000 as of its most recent filing with the SEC.

Other large investors have also added to or reduced their stakes in the company. Norges Bank purchased a new position in Broadcom during the 4th quarter valued at about $24,252,196,000. Cardano Risk Management B.V. lifted its holdings in shares of Broadcom by 895.2% in the fourth quarter. Cardano Risk Management B.V. now owns 12,689,800 shares of the semiconductor manufacturer's stock worth $4,391,940,000 after buying an additional 11,414,701 shares in the last quarter. State Street Corp boosted its position in shares of Broadcom by 2.7% in the fourth quarter. State Street Corp now owns 190,084,351 shares of the semiconductor manufacturer's stock valued at $65,788,194,000 after acquiring an additional 5,040,801 shares during the period. Arrowstreet Capital Limited Partnership grew its stake in Broadcom by 499.4% during the third quarter. Arrowstreet Capital Limited Partnership now owns 5,634,232 shares of the semiconductor manufacturer's stock valued at $1,858,789,000 after acquiring an additional 4,694,313 shares in the last quarter. Finally, Vanguard Group Inc. grew its stake in Broadcom by 0.8% during the fourth quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer's stock valued at $167,064,997,000 after acquiring an additional 3,919,715 shares in the last quarter. Institutional investors own 76.43% of the company's stock.

Broadcom News Roundup

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Apple expanded its Broadcom relationship with a $30 billion-plus chipmaking commitment, which should provide Broadcom with long-term revenue visibility and support for its AI/custom silicon growth story. Reuters: Apple to spend $30 billion in Broadcom chips deal that will see Colorado factory expand
• Positive Sentiment: Apple’s deal is being framed as a major U.S. manufacturing win and one of Broadcom’s biggest customer commitments, which could lift sentiment around AVGO’s AI infrastructure opportunity. TechCrunch: Apple to produce Made in America wireless chips with Broadcom
• Positive Sentiment: Investor attention is also being fueled by bullish coverage highlighting Broadcom as a top stock pick and an increasingly attractive AI semiconductor name after recent pullbacks. Insider Monkey: Top 5 Stocks to Buy According to Whale Rock Capital Management
• Neutral Sentiment: Some commentary says Broadcom had already pulled back from recent highs, with UBS arguing semiconductor valuations may now offer a more attractive entry point, but this is more valuation commentary than a fresh catalyst. Benzinga: Micron, Broadcom Just Got 25% Cheaper
• Negative Sentiment: One analyst reportedly downgraded Broadcom, suggesting not all views are uniformly bullish despite the Apple deal. Yahoo Finance: This Analyst Just Downgraded Broadcom Stock

Analyst Ratings Changes

Several analysts have issued reports on AVGO shares. JPMorgan Chase & Co. increased their target price on shares of Broadcom from $500.00 to $580.00 and gave the stock an "overweight" rating in a research note on Thursday, June 4th. Bank of America boosted their price target on shares of Broadcom from $450.00 to $530.00 and gave the company a "buy" rating in a research report on Thursday, June 4th. Morgan Stanley set a $502.00 price target on shares of Broadcom and gave the stock an "overweight" rating in a report on Thursday, June 4th. DA Davidson lifted their price objective on Broadcom from $375.00 to $400.00 and gave the company a "neutral" rating in a research note on Thursday, June 4th. Finally, UBS Group set a $485.00 target price on Broadcom and gave the stock a "buy" rating in a research report on Thursday, June 4th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat, Broadcom currently has a consensus rating of "Moderate Buy" and an average target price of $493.24.

Broadcom Stock Performance

NASDAQ:AVGO opened at $388.69 on Thursday. The company has a market capitalization of $1.85 trillion, a price-to-earnings ratio of 64.78, a PEG ratio of 0.65 and a beta of 1.45. The business has a 50 day moving average of $405.37 and a 200 day moving average of $363.44. The company has a debt-to-equity ratio of 0.71, a current ratio of 2.24 and a quick ratio of 2.01. Broadcom Inc. has a 1-year low of $269.58 and a 1-year high of $495.00.

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 net margin of 38.85% and a return on equity of 41.61%. The company had revenue of $22.19 billion for the quarter, compared to analysts' expectations of $22.13 billion. During the same quarter last year, the company earned $1.58 EPS. The firm'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 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 22nd were paid a $0.65 dividend. This represents a $2.60 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend was Monday, June 22nd. Broadcom's payout ratio is presently 43.33%.

Insider Activity

In other news, Director Harry L. You acquired 1,000 shares of the firm's stock in a transaction on Thursday, June 11th. The shares were purchased at an average price of $373.57 per share, for a total transaction of $373,570.00. Following the completion of the transaction, the director owned 38,466 shares of the company's stock, valued at $14,369,743.62. The trade was a 2.67% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Mark David Brazeal sold 4,825 shares of the company's stock in a transaction dated Wednesday, June 17th. The shares were sold at an average price of $394.91, for a total transaction of $1,905,440.75. Following the transaction, the insider directly owned 269,989 shares of the company's stock, valued at approximately $106,621,355.99. This trade represents a 1.76% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 17,754 shares of company stock valued at $6,739,006 in the last three months. 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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