Investment Insight Wealth Management LLC Makes New $15.14 Million Investment in Broadcom Inc. $AVGO

Key Points

• Investment Insight Wealth Management LLC disclosed a new position in Broadcom, buying 43,741 shares valued at about $15.14 million. The stake now represents roughly 14.9% of the firm’s portfolio and its second-largest holding.
• Broadcom reported better-than-expected quarterly results, with EPS of $2.44 and revenue of $22.19 billion, while revenue jumped 47.9% year over year. Analysts still expect the company to earn $10.24 per share for the full year.
• Wall Street remains largely upbeat on AVGO, with multiple firms raising price targets and the stock carrying a Moderate Buy consensus rating. Broadcom also announced a quarterly dividend of $0.65 per share, payable June 30.

Investment Insight Wealth Management LLC acquired a new position in shares of 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 acquired 43,741 shares of the semiconductor manufacturer's stock, valued at approximately $15,139,000. Broadcom comprises about 14.9% of Investment Insight Wealth Management LLC's investment portfolio, making the stock its 2nd biggest position.

A number of other hedge funds and other institutional investors have also made changes to their positions in AVGO. Stone Wealth Partners acquired a new position in Broadcom in the fourth quarter valued at $779,000. Lynch Investment Planning LLC acquired a new stake in Broadcom in the 4th quarter worth about $300,000. Drake & Associates LLC grew its holdings in Broadcom by 4.9% in the 4th quarter. Drake & Associates LLC now owns 3,801 shares of the semiconductor manufacturer's stock valued at $1,315,000 after buying an additional 177 shares during the period. Monetary Solutions Ltd purchased a new stake in Broadcom in the 4th quarter valued at about $112,000. Finally, Walser Wealth Management Company A Ltd Liability Co acquired a new position in shares of Broadcom during the 4th quarter valued at about $683,000. Hedge funds and other institutional investors own 76.43% of the company's stock.

Broadcom Price Performance

AVGO opened at $411.35 on Friday. The firm has a 50 day moving average price of $411.42 and a 200 day moving average price of $363.50. The company has a market cap of $1.96 trillion, a PE ratio of 68.56, a price-to-earnings-growth ratio of 0.72 and a beta of 1.41. Broadcom Inc. has a 1 year low of $244.17 and a 1 year high of $495.00. The company has a debt-to-equity ratio of 0.71, a quick ratio of 2.01 and a current ratio of 2.24.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its quarterly earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, beating the consensus estimate of $2.40 by $0.04. The firm had revenue of $22.19 billion for the quarter, compared to analyst estimates of $22.13 billion. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. Broadcom's revenue for the quarter was up 47.9% compared to the same quarter last year. During the same quarter last year, the firm posted $1.58 earnings per share. Sell-side analysts expect that Broadcom Inc. will post 10.24 earnings per share for the current year.

Broadcom Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Monday, June 22nd will be paid 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 of this dividend is Monday, June 22nd. Broadcom's dividend payout ratio (DPR) is currently 43.33%.

Insiders Place Their Bets

In related news, insider S. Ram Velaga sold 17,260 shares of the stock in a transaction on Thursday, April 9th. The stock was sold at an average price of $352.12, for a total value of $6,077,591.20. Following the completion of the sale, the insider directly owned 65,932 shares in the company, valued at approximately $23,215,975.84. This represents a 20.75% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Mark David Brazeal sold 4,825 shares of the stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $394.91, for a total value of $1,905,440.75. Following the completion of the sale, the insider owned 269,989 shares of the company's stock, valued at approximately $106,621,355.99. This represents a 1.76% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 59,385 shares of company stock worth $21,301,057. 1.90% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on the stock. JPMorgan Chase & Co. increased their price objective on shares of Broadcom from $500.00 to $580.00 and gave the stock an "overweight" rating in a report on Thursday, June 4th. Evercore restated an "outperform" rating and issued a $582.00 target price on shares of Broadcom in a report on Tuesday, May 19th. TD Cowen reaffirmed a "buy" rating and set a $500.00 price target on shares of Broadcom in a research report on Thursday, June 4th. Rosenblatt Securities reaffirmed a "buy" rating and set a $500.00 price target on shares of Broadcom in a research note on Thursday, June 4th. Finally, Bank of America lifted their price target on shares of Broadcom from $450.00 to $530.00 and gave the company a "buy" rating in a report on Thursday, June 4th. One analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, Broadcom has a consensus rating of "Moderate Buy" and a consensus target price of $490.13.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s debt tender offer was upsized to $3 billion after strong investor demand, signaling active balance-sheet management and reinforcing investor confidence. Broadcom Inc. Announces Results and Upsize of Offers to Purchase for Cash Certain of its Outstanding Debt Securities
• Positive Sentiment: JPMorgan remained bullish on Broadcom, saying investors should be “aggressive buyers,” which supports the view that the market may still be underestimating AVGO’s AI growth. AVGO stock jumps — JPMorgan says investors should be 'aggressive buyers' of Broadcom at current levels
• Positive Sentiment: Citi also called Broadcom a top chip stock on strong data-center demand, adding another bullish Wall Street view tied to AI infrastructure spending. Citi Touts Broadcom Inc. (AVGO) as a Top Chip Stock on Soaring Data Center Demand
• Positive Sentiment: One report said VMware, Broadcom’s second-largest business, may be set to accelerate, which could broaden growth beyond the company’s AI chip exposure. VMware: Broadcom's Second Biggest Business Set to Accelerate
• Neutral Sentiment: Insider Mark David Brazeal sold shares in two June transactions, but the sales were relatively small versus his remaining stake and do not necessarily change the broader investment thesis. Mark David Brazeal insider trading page
• Negative Sentiment: One analyst warned that chip valuations are getting stretched and suggested investors could consider alternatives, including Broadcom, which may temper enthusiasm if valuation concerns intensify. Analyst Warns Intel Valuation ‘Doesn't Make Sense.' Suggests NVIDIA, AMD, Micron, and Broadcom as Alternatives.

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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