Money Concepts Capital Corp Increases Position in Broadcom Inc. $AVGO

Key Points

• Money Concepts Capital Corp increased its Broadcom stake by 11.4% in the fourth quarter, adding 1,242 shares to bring its total to 12,178 shares valued at about $4.2 million.
• Broadcom continues to attract strong institutional interest, with hedge funds and other institutional investors owning 76.43% of the stock. Several smaller firms also opened new positions during the recent reporting periods.
• The company remains a favored AI infrastructure play, with analysts citing strength in custom AI silicon and data-center networking; recent price targets from firms like Citi and Wells Fargo were raised as Broadcom’s AI revenue appears to be running ahead of expectations.

Money Concepts Capital Corp boosted its holdings in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 11.4% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 12,178 shares of the semiconductor manufacturer's stock after acquiring an additional 1,242 shares during the period. Money Concepts Capital Corp's holdings in Broadcom were worth $4,215,000 at the end of the most recent reporting period.

Several other large investors also recently bought and sold shares of AVGO. JCIC Asset Management Inc. acquired a new position in Broadcom in the 3rd quarter valued at about $31,000. Miller Global Investments LLC acquired a new position in Broadcom in the 4th quarter valued at about $31,000. Nvest Wealth Strategies Inc. acquired a new position in Broadcom in the 4th quarter valued at about $33,000. Manning & Napier Advisors LLC acquired a new position in Broadcom in the 3rd quarter valued at about $34,000. Finally, Family CFO Inc acquired a new position in Broadcom in the 4th quarter valued at about $35,000. Hedge funds and other institutional investors own 76.43% of the company's stock.

Insider Activity

In related news, insider S. Ram Velaga sold 8,000 shares of the company's stock in a transaction that occurred on 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 $21,464,964.64. This represents a 12.13% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Mark David Brazeal sold 50,488 shares of the company's stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $321.60, for a total transaction of $16,236,940.80. Following the sale, the insider directly owned 278,141 shares in the company, valued at approximately $89,450,145.60. The trade was a 15.36% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 324,282 shares of company stock worth $106,425,249 over the last 90 days. Company insiders own 1.90% of the company's stock.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom remains a favored way to play AI infrastructure, with multiple recent articles highlighting its growing exposure to custom AI silicon, data-center networking, and AI semiconductor revenue. Citi also raised its price target to $500, reinforcing optimism ahead of the next earnings report.
• Positive Sentiment: Wells Fargo lifted its price target to $545 and said AI semiconductor revenue is running 30% to 40% above expectations, suggesting Broadcom may still be benefiting from stronger-than-expected hyperscaler spending.
• Positive Sentiment: Recent investor interest has also been supportive, with hedge fund and prominent manager buying cited in several notes, alongside Broadcom being named among top tech stocks to own as AI optimism continues to drive the market.
• Neutral Sentiment: Broadcom was also mentioned in a broader AI rotation piece that argues the next leg of the rally may be in AI bottlenecks such as optics, networking, and memory rather than only the most obvious chip winners. Broadcom was specifically named as one of the companies positioned to benefit from optical interconnect demand.
• Negative Sentiment: UBS warned that AI stocks, including Broadcom, are increasingly crowded trades, raising the risk of a pullback if enthusiasm cools or if investors rotate out of mega-cap semiconductors.
• Negative Sentiment: Some commentary also suggests the AI chip rally may be masking broader market weakness, which can make even strong names like Broadcom vulnerable to profit-taking after a powerful advance.

Broadcom Price Performance

Broadcom stock opened at $425.19 on Monday. The company's 50 day simple moving average is $365.61 and its 200-day simple moving average is $354.56. The company has a market capitalization of $2.01 trillion, a price-to-earnings ratio of 83.05, a price-to-earnings-growth ratio of 0.88 and a beta of 1.43. Broadcom Inc. has a 1 year low of $221.60 and a 1 year high of $442.36. 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 released its quarterly earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.03 by $0.02. The business had revenue of $19.31 billion for the quarter, compared to the consensus estimate of $19.10 billion. Broadcom had a net margin of 36.57% and a return on equity of 38.61%. The business's revenue was up 29.5% on a year-over-year basis. During the same period in the previous year, the firm earned $1.60 EPS. As a group, equities research analysts expect that Broadcom Inc. will post 9.95 earnings per share for the current year.

Broadcom Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Monday, March 23rd were 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 was Monday, March 23rd. Broadcom's payout ratio is 50.78%.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on the stock. Weiss Ratings lowered shares of Broadcom from a "buy (b-)" rating to a "hold (c+)" rating in a report on Friday, April 24th. DA Davidson upgraded shares of Broadcom to a "hold" rating in a report on Friday, February 13th. Citigroup reiterated a "buy" rating and issued a $500.00 target price (up from $475.00) on shares of Broadcom in a report on Tuesday, May 12th. Wolfe Research upgraded shares of Broadcom from a "peer perform" rating to an "outperform" rating and set a $400.00 target price on the stock in a report on Friday, January 30th. Finally, Rosenblatt Securities reiterated a "buy" rating and issued a $500.00 target price on shares of Broadcom in a report on Tuesday, April 7th. Two 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, the company presently has an average rating of "Moderate Buy" and a consensus target price of $441.63.

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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