Naples Global Advisors LLC Trims Stock Holdings in Broadcom Inc. $AVGO

Key Points

• Naples Global Advisors LLC cut its Broadcom stake by 6.0% in the fourth quarter, selling 7,226 shares and leaving it with 112,534 shares worth about $38.9 million. Broadcom remains its second-largest holding at roughly 2.9% of the portfolio.
• Broadcom continues to attract strong Wall Street support, with several analysts raising price targets, including JPMorgan to $500 and Truist to $545. The stock carries a consensus Moderate Buy rating and an average target of $441.63.
• The company posted solid quarterly results, beating earnings and revenue estimates with $2.05 EPS and $19.31 billion in revenue, while revenue rose 29.5% year over year. Broadcom also paid a quarterly dividend of $0.65 per share.

Naples Global Advisors LLC lowered its position in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 6.0% during the fourth quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 112,534 shares of the semiconductor manufacturer's stock after selling 7,226 shares during the period. Broadcom comprises about 2.9% of Naples Global Advisors LLC's portfolio, making the stock its 2nd biggest position. Naples Global Advisors LLC's holdings in Broadcom were worth $38,948,000 at the end of the most recent reporting period.

Other institutional investors have also recently made changes to their positions in the company. JCIC Asset Management Inc. bought a new stake in shares of Broadcom in the 3rd quarter valued at about $31,000. Miller Global Investments LLC bought a new position in Broadcom during the 4th quarter valued at $31,000. Nvest Wealth Strategies Inc. bought a new position in Broadcom during the 4th quarter valued at $33,000. Manning & Napier Advisors LLC purchased a new position in shares of Broadcom in the 3rd quarter worth approximately $34,000. Finally, Family CFO Inc bought a new position in Broadcom in the 4th quarter valued at $35,000. Institutional investors own 76.43% of the company's stock.

Wall Street Analyst Weigh In

A number of research analysts have issued reports on the company. Seaport Research Partners restated a "neutral" rating on shares of Broadcom in a research note on Wednesday, April 8th. JPMorgan Chase & Co. raised their price target on Broadcom from $475.00 to $500.00 and gave the stock an "overweight" rating in a report on Thursday, March 5th. TD Cowen reaffirmed a "buy" rating and issued a $500.00 price target (up from $405.00) on shares of Broadcom in a report on Friday. Wolfe Research upgraded Broadcom from a "peer perform" rating to an "outperform" rating and set a $400.00 price objective on the stock in a research report on Friday, January 30th. Finally, Truist Financial increased their price objective on Broadcom from $510.00 to $545.00 and gave the stock a "buy" rating in a research report on Thursday, March 5th. Two research analysts have rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat, Broadcom has a consensus rating of "Moderate Buy" and an average price target of $441.63.

Broadcom News Summary

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 Trading Down 3.3%

NASDAQ AVGO opened at $425.19 on Friday. The stock's 50-day simple moving average is $365.61 and its two-hundred day simple moving average is $354.62. Broadcom Inc. has a twelve month low of $221.60 and a twelve month high of $442.36. The company has a quick ratio of 1.73, a current ratio of 1.90 and a debt-to-equity ratio of 0.80. The company has a market capitalization of $2.01 trillion, a price-to-earnings ratio of 83.05, a PEG ratio of 0.88 and a beta of 1.43.

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 for the quarter, beating analysts' consensus estimates of $2.03 by $0.02. Broadcom had a return on equity of 38.61% and a net margin of 36.57%.The business had revenue of $19.31 billion for the quarter, compared to the consensus estimate of $19.10 billion. During the same quarter last year, the business posted $1.60 earnings per share. The company's revenue for the quarter was up 29.5% on a year-over-year basis. Research analysts forecast that Broadcom Inc. will post 9.95 EPS for the current fiscal year.

Broadcom Dividend Announcement

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

Insider Buying and Selling at Broadcom

In other Broadcom news, insider Charlie B. Kawwas sold 10,000 shares of the firm's stock in a transaction dated Wednesday, April 8th. The stock was sold at an average price of $345.23, for a total transaction of $3,452,300.00. Following the sale, the insider 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 transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, 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 value of $2,964,160.00. Following the sale, the insider owned 57,932 shares in the company, valued at $21,464,964.64. The trade was a 12.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 324,282 shares of company stock valued at $106,425,249. 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.