Intact Investment Management Inc. Sells 27,800 Shares of Broadcom Inc. $AVGO

Key Points

• Intact Investment Management cut its Broadcom stake by 29.8% in the fourth quarter, selling 27,800 shares and leaving it with 65,400 shares worth about $22.6 million.
• Broadcom reported solid quarterly results, with earnings per share of $2.05 and revenue of $19.31 billion, both ahead of analyst expectations. Revenue rose 29.5% year over year.
• The stock has been active amid mixed headlines: reports suggest OpenAI’s planned $18 billion custom chip deal with Broadcom hit a financing snag, even as analysts still rate the shares a Moderate Buy with an average price target of $435.30.

Intact Investment Management Inc. reduced its stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 29.8% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 65,400 shares of the semiconductor manufacturer's stock after selling 27,800 shares during the period. Intact Investment Management Inc.'s holdings in Broadcom were worth $22,635,000 at the end of the most recent reporting period.

A number of other institutional investors also recently bought and sold shares of AVGO. Arrowstreet Capital Limited Partnership raised its stake in Broadcom by 499.4% in the third quarter. Arrowstreet Capital Limited Partnership now owns 5,634,232 shares of the semiconductor manufacturer's stock worth $1,858,789,000 after buying an additional 4,694,313 shares in the last quarter. Vanguard Group Inc. raised its stake in Broadcom by 0.8% in the fourth quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer's stock worth $167,064,997,000 after buying an additional 3,919,715 shares in the last quarter. Nordea Investment Management AB raised its stake in Broadcom by 47.5% in the fourth quarter. Nordea Investment Management AB now owns 9,814,757 shares of the semiconductor manufacturer's stock worth $3,406,211,000 after buying an additional 3,160,586 shares in the last quarter. Danske Bank A S bought a new position in Broadcom in the third quarter worth about $987,488,000. Finally, PFA Pension Forsikringsaktieselskab bought a new position in Broadcom in the fourth quarter worth about $924,858,000. 76.43% of the stock is owned by institutional investors.

Insider Activity

In other news, insider Mark David Brazeal sold 50,488 shares of the 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 sale, the insider owned 278,141 shares in the company, valued at $89,450,145.60. This represents a 15.36% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Charlie B. Kawwas sold 10,000 shares of the stock in a transaction that occurred on Wednesday, April 8th. The shares were sold at an average price of $345.23, for a total transaction of $3,452,300.00. Following the sale, the insider owned 787,184 shares in the company, valued at approximately $271,759,532.32. The trade was a 1.25% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 324,282 shares of company stock valued at $106,425,249. Company insiders own 1.90% of the company's stock.

Broadcom Stock Performance

NASDAQ:AVGO opened at $430.00 on Monday. The company's 50 day moving average price is $352.89 and its 200-day moving average price is $351.28. Broadcom Inc. has a 52 week low of $206.52 and a 52 week high of $437.68. The company has a quick ratio of 1.73, a current ratio of 1.90 and a debt-to-equity ratio of 0.80. The stock has a market cap of $2.04 trillion, a price-to-earnings ratio of 83.98, a PEG ratio of 0.89 and a beta of 1.43.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its quarterly earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 EPS for the quarter, beating analysts' consensus estimates of $2.03 by $0.02. Broadcom had a net margin of 36.57% and a return on equity of 38.61%. The firm had revenue of $19.31 billion for the quarter, compared to analysts' expectations of $19.10 billion. During the same quarter in the prior year, the company posted $1.60 earnings per share. The business's revenue for the quarter was up 29.5% on a year-over-year basis. On average, equities research analysts forecast that Broadcom Inc. will post 9.95 earnings per share for the current fiscal year.

Broadcom Announces Dividend

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

Key Headlines Impacting Broadcom

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

Analysts Set New Price Targets

A number of brokerages have weighed in on AVGO. Erste Group Bank cut shares of Broadcom from a "buy" rating to a "hold" rating in a report on Thursday, April 2nd. Bank of America cut their price objective on shares of Broadcom from $500.00 to $450.00 and set a "buy" rating on the stock in a report on Thursday, March 5th. Seaport Research Partners restated a "neutral" rating on shares of Broadcom in a report on Wednesday, April 8th. Wolfe Research upgraded shares of Broadcom from a "peer perform" rating to an "outperform" rating and set a $400.00 price objective on the stock in a report on Friday, January 30th. Finally, Mizuho restated an "outperform" rating and issued a $480.00 price objective on shares of Broadcom in a report on Thursday, April 16th. Two investment 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's stock. According to MarketBeat, Broadcom has a consensus rating of "Moderate Buy" and an average price target of $435.30.

Broadcom 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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