McLaughlin Asset Management Inc. Makes New $3.50 Million Investment in Broadcom Inc. $AVGO

Key Points

• McLaughlin Asset Management opened a new position in Broadcom during the fourth quarter, buying 10,100 shares worth about $3.5 million. The stake now represents roughly 3.1% of its portfolio and is its fifth-largest holding.
• Broadcom continues to attract strong institutional and analyst support, with 76.43% of shares held by institutions and a consensus rating of Moderate Buy. Several firms recently raised their ratings, and the average price target stands at $490.13.
• The company reported better-than-expected Q2 results, including EPS of $2.44 and revenue of $22.19 billion, while revenue jumped 47.9% year over year. Broadcom also announced a quarterly dividend of $0.65 per share, payable June 30.

McLaughlin Asset Management Inc. purchased a new position in Broadcom Inc. (NASDAQ:AVGO - Free Report) during the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund purchased 10,100 shares of the semiconductor manufacturer's stock, valued at approximately $3,496,000. Broadcom accounts for approximately 3.1% of McLaughlin Asset Management Inc.'s investment portfolio, making the stock its 5th largest position.

A number of other institutional investors also recently modified their holdings of the company. ROSS JOHNSON & Associates LLC raised its position in shares of Broadcom by 1,320.0% in the 4th quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer's stock worth $25,000 after acquiring an additional 66 shares in the last quarter. SWAN Capital LLC boosted its position in shares of Broadcom by 261.9% during the 4th quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer's stock valued at $26,000 after purchasing an additional 55 shares in the last quarter. Miller Global Investments LLC bought a new stake in shares of Broadcom during the 4th quarter valued at about $31,000. Nvest Wealth Strategies Inc. acquired a new stake in Broadcom during the fourth quarter worth approximately $33,000. Finally, Family CFO Inc acquired a new stake in shares of Broadcom during the 4th quarter worth approximately $35,000. 76.43% of the stock is owned by institutional investors.

Analysts Set New Price Targets

A number of research analysts recently issued reports on AVGO shares. Seaport Research Partners reiterated a "neutral" rating on shares of Broadcom in a research report on Wednesday, April 8th. Weiss Ratings raised shares of Broadcom from a "buy (b-)" rating to a "buy (b)" rating in a research note on Tuesday, June 9th. Wall Street Zen raised shares of Broadcom from a "buy" rating to a "strong-buy" rating in a research report on Monday. Morgan Stanley set a $502.00 target price on Broadcom and gave the company an "overweight" rating in a research note on Thursday, June 4th. Finally, Erste Group Bank raised Broadcom from a "hold" rating to a "buy" rating in a research note on Friday, June 5th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, Broadcom presently has an average rating of "Moderate Buy" and an average price target of $490.13.

Broadcom Stock Performance

AVGO opened at $411.35 on Friday. Broadcom Inc. has a 1-year low of $244.17 and a 1-year high of $495.00. The company has a market cap of $1.96 trillion, a price-to-earnings ratio of 68.56, a PEG ratio of 0.69 and a beta of 1.41. The company's fifty day moving average price is $410.21 and its two-hundred day moving average price is $363.17. The company has a current ratio of 2.24, a quick ratio of 2.01 and a debt-to-equity ratio of 0.71.

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

Broadcom Announces Dividend

The company 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. The ex-dividend date is Monday, June 22nd. This represents a $2.60 annualized dividend and a dividend yield of 0.6%. Broadcom's dividend payout ratio is presently 43.33%.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom expanded its cash tender offers for outstanding debt to $3 billion from $2.5 billion after strong investor demand, which can be viewed as a sign of balance-sheet management and helped lift sentiment toward the stock. Broadcom Inc. Announces Results and Upsize of Offers to Purchase for Cash Certain of its Outstanding Debt Securities
• Positive Sentiment: JPMorgan reiterated a bullish view, saying investors should be “aggressive buyers” and arguing the market is underestimating Broadcom’s long-term AI opportunity, reinforcing the rally in AVGO. AVGO stock jumps — JPMorgan says investors should be 'aggressive buyers' of Broadcom at current levels
• Positive Sentiment: Citi also highlighted Broadcom as a top chip stock on soaring data-center demand, adding to optimism around AI-driven revenue growth. Citi Touts Broadcom Inc. (AVGO) as a Top Chip Stock on Soaring Data Center Demand
• Neutral Sentiment: Insider Mark David Brazeal sold shares in two June transactions totaling more than 8,100 shares. The sales are notable, but they represent relatively small reductions in a large personal holding and do not necessarily signal a change in the company’s outlook. Mark David Brazeal insider trading page

Insider Buying and Selling

In related news, insider S. Ram Velaga sold 8,000 shares of the firm's stock in a transaction dated Friday, April 10th. The shares were sold at an average price of $370.52, for a total transaction of $2,964,160.00. Following the transaction, the insider directly owned 57,932 shares of the company's stock, valued at $21,464,964.64. This trade represents a 12.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Harry L. You purchased 1,000 shares of the business's stock in a transaction that occurred 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 acquisition, 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 position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have sold a total of 59,385 shares of company stock valued at $21,301,057 over the last 90 days. 1.90% of the stock is currently owned by company insiders.

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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