Montrusco Bolton Investments Inc. Acquires 339,895 Shares of Broadcom Inc. $AVGO

Key Points

• Montrusco Bolton Investments increased its Broadcom stake by 119% in the first quarter, buying 339,895 additional shares and bringing its total holding to 625,635 shares worth about $187.9 million.
• Broadcom continues to draw bullish analyst support, with multiple firms raising price targets and maintaining Buy ratings; the consensus target stands at $493.24.
• The stock has been supported by strong fundamentals and positive news flow, including Q2 earnings that beat estimates, a quarterly dividend of $0.65 per share, and reports of Apple’s $30 billion-plus chip commitment to Broadcom.

Montrusco Bolton Investments Inc. grew its holdings in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 119.0% during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 625,635 shares of the semiconductor manufacturer's stock after purchasing an additional 339,895 shares during the period. Broadcom comprises approximately 2.8% of Montrusco Bolton Investments Inc.'s holdings, making the stock its 13th largest holding. Montrusco Bolton Investments Inc.'s holdings in Broadcom were worth $187,877,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also made changes to their positions in AVGO. ROSS JOHNSON & Associates LLC increased its stake in 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 buying an additional 66 shares during the period. Networth Advisors LLC grew its stake in Broadcom by 546.2% in the 1st quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer's stock worth $26,000 after acquiring an additional 71 shares in the last quarter. SWAN Capital LLC grew its stake in Broadcom by 261.9% in the 4th quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer's stock worth $26,000 after acquiring an additional 55 shares in the last quarter. Miller Global Investments LLC purchased a new position in shares of Broadcom during the fourth quarter worth approximately $31,000. Finally, Nvest Wealth Strategies Inc. purchased a new position in shares of Broadcom during the fourth quarter worth approximately $33,000. 76.43% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on the company. Jefferies Financial Group set a $550.00 price target on Broadcom and gave the company a "buy" rating in a report on Thursday, June 4th. Rosenblatt Securities reaffirmed a "buy" rating and set a $500.00 target price on shares of Broadcom in a research report on Thursday, June 4th. The Goldman Sachs Group reiterated a "buy" rating and issued a $525.00 target price on shares of Broadcom in a report on Thursday, June 4th. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and set a $515.00 price target (up from $430.00) on shares of Broadcom in a research report on Thursday, June 4th. Finally, Benchmark raised their price target on Broadcom from $485.00 to $545.00 and gave the company a "buy" rating in a research note on Thursday, June 4th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating and four have given a Hold rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $493.24.

Broadcom Stock Up 4.8%

NASDAQ:AVGO opened at $388.69 on Thursday. The company's 50-day simple moving average is $405.37 and its 200-day simple moving average is $363.44. 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 Inc. has a fifty-two week low of $269.58 and a fifty-two week high of $495.00. The stock has a market capitalization of $1.85 trillion, a P/E ratio of 64.78, a P/E/G ratio of 0.65 and a beta of 1.45.

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

Broadcom Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Monday, June 22nd were given a dividend of $0.65 per share. The ex-dividend date of this dividend was Monday, June 22nd. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.7%. Broadcom's dividend payout ratio is presently 43.33%.

Broadcom News Roundup

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Apple expanded its Broadcom relationship with a $30 billion-plus chipmaking commitment, which should provide Broadcom with long-term revenue visibility and support for its AI/custom silicon growth story. Reuters: Apple to spend $30 billion in Broadcom chips deal that will see Colorado factory expand
• Positive Sentiment: Apple’s deal is being framed as a major U.S. manufacturing win and one of Broadcom’s biggest customer commitments, which could lift sentiment around AVGO’s AI infrastructure opportunity. TechCrunch: Apple to produce Made in America wireless chips with Broadcom
• Positive Sentiment: Investor attention is also being fueled by bullish coverage highlighting Broadcom as a top stock pick and an increasingly attractive AI semiconductor name after recent pullbacks. Insider Monkey: Top 5 Stocks to Buy According to Whale Rock Capital Management
• Neutral Sentiment: Some commentary says Broadcom had already pulled back from recent highs, with UBS arguing semiconductor valuations may now offer a more attractive entry point, but this is more valuation commentary than a fresh catalyst. Benzinga: Micron, Broadcom Just Got 25% Cheaper
• Negative Sentiment: One analyst reportedly downgraded Broadcom, suggesting not all views are uniformly bullish despite the Apple deal. Yahoo Finance: This Analyst Just Downgraded Broadcom Stock

Insiders Place Their Bets

In related news, Director Justine Page sold 1,602 shares of the business's stock in a transaction on Monday, June 29th. The stock was sold at an average price of $373.86, for a total transaction of $598,923.72. Following the transaction, the director directly owned 17,426 shares in the company, valued at $6,514,884.36. The trade was a 8.42% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Harry L. You purchased 1,000 shares of the firm's stock in a transaction on Thursday, June 11th. The stock was acquired at an average price of $373.57 per share, with a total value of $373,570.00. Following the completion of the purchase, 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. The disclosure for this purchase is available in the SEC filing. In the last ninety days, insiders sold 17,754 shares of company stock valued at $6,739,006. Company insiders own 1.90% of the company's stock.

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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