McHugh Group LLC Sells 1,403 Shares of Broadcom Inc. $AVGO

Key Points

• McHugh Group LLC cut its Broadcom stake by 16.6% in the fourth quarter, selling 1,403 shares and leaving it with 7,030 shares worth about $2.43 million. Broadcom still ranks as the firm’s 15th-largest holding.
• Broadcom is drawing mixed signals from the AI market: reports say OpenAI’s planned $18 billion custom chip deal hit a financing snag, raising concern about a key growth driver. At the same time, Broadcom has rolled out VMware by Broadcom VCF 9.1 to support private-cloud AI workloads.
• The stock remains broadly well regarded by analysts and institutions, with 76.43% institutional ownership and a Wall Street consensus of “Moderate Buy” plus a $435.30 price target. Broadcom also beat quarterly EPS and revenue estimates and recently paid a $0.65 quarterly dividend.

McHugh Group LLC lessened its stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 16.6% in the 4th quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 7,030 shares of the semiconductor manufacturer's stock after selling 1,403 shares during the period. Broadcom comprises 1.4% of McHugh Group LLC's portfolio, making the stock its 15th biggest holding. McHugh Group LLC's holdings in Broadcom were worth $2,433,000 as of its most recent filing with the SEC.

Other hedge funds have also made changes to their positions in the company. Providence First Trust Co lifted its stake in Broadcom by 1,099.3% during the third quarter. Providence First Trust Co now owns 8,923 shares of the semiconductor manufacturer's stock worth $2,944,000 after purchasing an additional 8,179 shares during the period. Whittier Trust Co. of Nevada Inc. lifted its stake in Broadcom by 3.4% during the third quarter. Whittier Trust Co. of Nevada Inc. now owns 323,587 shares of the semiconductor manufacturer's stock worth $109,492,000 after purchasing an additional 10,786 shares during the period. Lmcg Investments LLC lifted its stake in Broadcom by 9.4% during the third quarter. Lmcg Investments LLC now owns 38,961 shares of the semiconductor manufacturer's stock worth $12,854,000 after purchasing an additional 3,357 shares during the period. Wright Investors Service Inc. lifted its stake in Broadcom by 5.4% during the third quarter. Wright Investors Service Inc. now owns 42,159 shares of the semiconductor manufacturer's stock worth $13,909,000 after purchasing an additional 2,178 shares during the period. Finally, Brown Brothers Harriman & Co. lifted its stake in Broadcom by 10.7% during the third quarter. Brown Brothers Harriman & Co. now owns 77,411 shares of the semiconductor manufacturer's stock worth $25,539,000 after purchasing an additional 7,499 shares during the period. Institutional investors own 76.43% of the company's stock.

Trending Headlines about 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

Wall Street Analyst Weigh In

A number of brokerages have commented on AVGO. Citigroup raised their price target on shares of Broadcom from $458.00 to $475.00 and gave the stock a "buy" rating in a research note on Thursday, March 5th. Benchmark restated a "buy" rating and set a $485.00 price target on shares of Broadcom in a research note on Thursday, March 5th. Wells Fargo & Company raised shares of Broadcom from an "equal weight" rating to an "overweight" rating and raised their price objective for the stock from $410.00 to $430.00 in a report on Thursday, January 15th. Zacks Research raised shares of Broadcom from a "hold" rating to a "strong-buy" rating in a report on Thursday, April 2nd. Finally, Royal Bank Of Canada dropped their price objective on shares of Broadcom from $370.00 to $340.00 and set a "sector perform" rating for the company in a report on Monday, March 2nd. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and four have issued a Hold rating to the company's stock. According to data from MarketBeat.com, Broadcom has an average rating of "Moderate Buy" and a consensus price target of $435.30.

Insider Buying and Selling

In other news, insider Charlie B. Kawwas sold 10,000 shares of Broadcom stock in a transaction 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 transaction, the insider directly owned 787,184 shares of the company's stock, valued at $271,759,532.32. This trade represents a 1.25% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Gayla J. Delly sold 1,000 shares of Broadcom stock in a transaction on Thursday, April 9th. The stock was sold at an average price of $358.31, for a total transaction of $358,310.00. Following the transaction, the director directly owned 32,352 shares in the company, valued at approximately $11,592,045.12. This represents a 3.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 324,282 shares of company stock valued at $106,425,249. 1.90% of the stock is owned by company insiders.

Broadcom Stock Performance

NASDAQ AVGO opened at $430.00 on Monday. The company has a market capitalization of $2.04 trillion, a PE ratio of 83.98, a P/E/G ratio of 0.89 and a beta of 1.43. Broadcom Inc. has a 12 month low of $206.52 and a 12 month high of $437.68. The stock has a 50-day simple moving average of $352.89 and a 200 day simple moving average of $351.28. The company has a current ratio of 1.90, a quick ratio of 1.73 and a debt-to-equity ratio of 0.80.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.03 by $0.02. The company had revenue of $19.31 billion during the quarter, compared to analyst estimates of $19.10 billion. Broadcom had a return on equity of 38.61% and a net margin of 36.57%.The company's revenue for the quarter was up 29.5% compared to the same quarter last year. During the same period in the previous year, the company earned $1.60 EPS. Research analysts forecast that Broadcom Inc. will post 9.95 EPS for the current year.

Broadcom Announces Dividend

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

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.

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