Mitsubishi UFJ Morgan Stanley Securities Co. Ltd. Purchases New Stake in Broadcom Inc. $AVGO

Key Points

• Mitsubishi UFJ Morgan Stanley Securities opened a new position in Broadcom during the fourth quarter, buying 2,866 shares worth about $992,000. The stock now represents 1.6% of its portfolio and its 14th-largest holding.
• Broadcom continues to benefit from the AI infrastructure buildout, with recent bullish analyst notes and higher price targets reinforcing optimism ahead of earnings. The article also notes Broadcom’s new AI-related networking and broadband product announcements.
• Despite strong momentum, Broadcom is trading at a premium valuation near its 52-week high, and investors are watching earnings closely for evidence that growth can justify the stock’s rally. Recent insider selling and a bearish bet highlight some caution around high expectations.

Mitsubishi UFJ Morgan Stanley Securities Co. Ltd. acquired a new position in Broadcom Inc. (NASDAQ:AVGO - Free Report) in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor acquired 2,866 shares of the semiconductor manufacturer's stock, valued at approximately $992,000. Broadcom makes up 1.6% of Mitsubishi UFJ Morgan Stanley Securities Co. Ltd.'s investment portfolio, making the stock its 14th biggest position.

Other institutional investors have also added to or reduced their stakes in the company. Miller Global Investments LLC bought a new position in Broadcom in the 4th quarter worth $31,000. Nvest Wealth Strategies Inc. bought a new position in Broadcom in the 4th quarter worth $33,000. Family CFO Inc bought a new position in Broadcom in the 4th quarter worth $35,000. PayPay Securities Corp raised its holdings in Broadcom by 88.9% in the 4th quarter. PayPay Securities Corp now owns 119 shares of the semiconductor manufacturer's stock worth $41,000 after purchasing an additional 56 shares in the last quarter. Finally, Camelot Portfolios LLC bought a new position in Broadcom in the 4th quarter worth $45,000. 76.43% of the stock is currently owned by institutional investors.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom is benefiting from the broader AI infrastructure buildout, especially Alphabet’s fundraising plans for more AI spending, which investors see as a tailwind for AI chip suppliers. Broadcom Stock Hit Another Record High. Why Google's Big AI Buildout Is a Boon for the Chipmaker
• Positive Sentiment: Oppenheimer reiterated a Buy rating on Broadcom ahead of earnings, signaling confidence that the company can deliver a strong quarter and support the stock’s premium valuation. Veteran Bank Makes Big Broadcom Call Before Earnings Report
• Positive Sentiment: Multiple recent notes raised price targets on Broadcom, including Morgan Stanley and Susquehanna, adding to bullish sentiment into the earnings report. Susquehanna and UBS Raise Broadcom (AVGO) Price Target Ahead of Results
• Positive Sentiment: Broadcom’s networking and AI-edge product announcements, including Wi-Fi 8 and broadband chips with AI capabilities, reinforce the company’s role in the AI ecosystem. Broadcom Connects the AI Edge with Comprehensive Multi-Gig Broadband and Wi-Fi 8 Innovations
• Neutral Sentiment: Analysts expect strong AI-related semiconductor revenue growth and VMware-led software contributions in the upcoming quarter, but investors are also watching for margin pressure from lower-margin XPU sales. Will Higher Semiconductor Revenues Help AVGO Stock Beat Q2 Earnings?
• Neutral Sentiment: Broadcom is trading at a premium valuation ahead of earnings, so while the AI story is strong, the stock may need a near-perfect report to keep the rally going. Broadcom Stock Hits Record High Ahead of Earnings
• Negative Sentiment: One published bearish view suggests some investors are positioning against Broadcom heading into earnings, reflecting concern that expectations may already be very high. Broadcom Inc. (AVGO): Leopold Aschenbrenner Reveals Bearish Bet

Broadcom Stock Performance

Shares of AVGO stock opened at $481.57 on Wednesday. Broadcom Inc. has a one year low of $241.11 and a one year high of $488.82. The company's 50-day moving average is $386.31 and its 200 day moving average is $359.32. The company has a market capitalization of $2.28 trillion, a price-to-earnings ratio of 94.06, a price-to-earnings-growth ratio of 0.95 and a beta of 1.41. The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.73 and a current ratio of 1.90.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its quarterly earnings data on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 EPS for the quarter, beating the consensus estimate of $2.03 by $0.02. Broadcom had a net margin of 36.57% and a return on equity of 38.61%. The company had revenue of $19.31 billion for the quarter, compared to the consensus estimate of $19.10 billion. During the same period in the prior year, the firm posted $1.60 EPS. Broadcom's revenue for the quarter was up 29.5% on a year-over-year basis. Sell-side analysts expect that Broadcom Inc. will post 9.91 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

AVGO has been the subject of several research reports. Seaport Research Partners restated a "neutral" rating on shares of Broadcom in a report on Wednesday, April 8th. DA Davidson upgraded shares of Broadcom to a "hold" rating in a report on Friday, February 13th. Wall Street Zen downgraded shares of Broadcom from a "buy" rating to a "hold" rating in a research report on Saturday. Erste Group Bank downgraded shares of Broadcom from a "buy" rating to a "hold" rating in a research report on Thursday, April 2nd. Finally, Evercore reaffirmed an "outperform" rating and issued a $582.00 target price on shares of Broadcom in a research report on Tuesday, May 19th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $455.07.

Insider Activity at Broadcom

In related news, insider S. Ram Velaga sold 8,000 shares of the 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 sale, the insider directly owned 57,932 shares of the company's stock, valued at approximately $21,464,964.64. This represents a 12.13% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Charlie B. Kawwas sold 10,000 shares of the stock in a transaction dated 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 directly owned 787,184 shares in the company, valued at $271,759,532.32. This trade represents a 1.25% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 324,282 shares of company stock worth $106,425,249 in the last ninety days. 1.90% of the stock is currently owned by company insiders.

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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