Navigation Group LLC Acquires New Holdings in Broadcom Inc. $AVGO

Key Points

• Navigation Group LLC opened a new position in Broadcom during the first quarter, buying 5,264 shares valued at about $1.63 million.
• Broadcom reported better-than-expected quarterly results, with EPS of $2.44 versus estimates of $2.40 and revenue of $22.19 billion, up 47.9% year over year.
• Wall Street remains broadly constructive on the stock, with analysts assigning a Moderate Buy rating and an average price target of $493.24, even as concerns linger about valuation and an EU antitrust review tied to VMware licensing changes.

Navigation Group LLC bought a new stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) in the 1st quarter, according to its most recent 13F filing with the SEC. The firm bought 5,264 shares of the semiconductor manufacturer's stock, valued at approximately $1,629,000.

Several other institutional investors and hedge funds also recently modified their holdings of AVGO. ROSS JOHNSON & Associates LLC increased its stake in shares of Broadcom by 1,320.0% during the 4th quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer's stock worth $25,000 after purchasing an additional 66 shares in the last quarter. SWAN Capital LLC lifted its stake in Broadcom by 261.9% in the 4th quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer's stock valued at $26,000 after buying an additional 55 shares in the last quarter. Networth Advisors LLC grew its holdings in Broadcom by 546.2% during the 1st quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer's stock valued at $26,000 after buying an additional 71 shares during the last quarter. Nvest Wealth Strategies Inc. acquired a new stake in Broadcom during the 4th quarter valued at $33,000. Finally, Family CFO Inc purchased a new position in Broadcom during the fourth quarter worth $35,000. Hedge funds and other institutional investors own 76.43% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently weighed in on the company. Jefferies Financial Group set a $550.00 price target on Broadcom and gave the stock a "buy" rating in a report on Thursday, June 4th. JPMorgan Chase & Co. lifted their price objective on Broadcom from $500.00 to $580.00 and gave the stock an "overweight" rating in a research report on Thursday, June 4th. Benchmark boosted their target price on shares of Broadcom from $485.00 to $545.00 and gave the company a "buy" rating in a research note on Thursday, June 4th. Susquehanna restated a "positive" rating and issued a $490.00 target price (up from $450.00) on shares of Broadcom in a report on Thursday, May 28th. Finally, Royal Bank Of Canada raised their price target on shares of Broadcom from $360.00 to $400.00 and gave the stock a "sector perform" rating in a research note on Thursday, June 4th. One research analyst has rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $493.24.

Broadcom Price Performance

Shares of NASDAQ:AVGO opened at $370.83 on Monday. The company has a current ratio of 2.24, a quick ratio of 2.01 and a debt-to-equity ratio of 0.71. The firm has a market cap of $1.76 trillion, a price-to-earnings ratio of 61.81, a PEG ratio of 0.65 and a beta of 1.45. The stock's 50-day moving average price is $401.29 and its two-hundred day moving average price is $365.42. Broadcom Inc. has a 12-month low of $273.00 and a 12-month high of $495.00.

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, beating analysts' consensus estimates 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 company's quarterly revenue was up 47.9% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.58 EPS. On average, research analysts forecast that Broadcom Inc. will post 10.24 EPS for the current year.

Broadcom Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Monday, June 22nd were paid 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 yield of 0.7%. Broadcom's dividend payout ratio (DPR) is currently 43.33%.

Key Stories Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Standard Chartered chose Broadcom to support a long-term modernization of its global banking infrastructure, underscoring Broadcom’s role in secure private-cloud and enterprise networking solutions. Standard Chartered Selects Broadcom to Deliver Secure, Always-On Banking Services at Global Scale
• Positive Sentiment: Wall Street commentary continues to describe Broadcom as a core AI beneficiary, and some analysts have raised price targets even after the stock pullback. As Shares Fall, Analyst Are Boosting Their Broadcom Price Targets
• Neutral Sentiment: Broadcom remains a major talking point in AI-focused market coverage, with some investors viewing it as an indicator for the broader market and semiconductor cycle. Jim Cramer Says Broadcom Will Tell You When the Market Is About to Turn
• Negative Sentiment: Broadcom is facing renewed skepticism around valuation, with one report asking whether the AI story has made the stock too expensive. Has Broadcom Become Too Expensive for Its AI Story?
• Negative Sentiment: The stock is also being hit by a broader selloff in semiconductor names as investors rotate away from AI-capex winners and worry about a slowdown in chip spending. Marvell Drops 8% as AI Capex Slowdown Fears Weigh on Chips; Broadcom, AMD, and Intel Slide
• Negative Sentiment: Broadcom is also dealing with regulatory uncertainty after reports said it faces an EU antitrust review tied to VMware licensing changes. Broadcom (AVGO) Faces EU Antitrust Review Over VMware Licensing Changes

Insider Activity at Broadcom

In other news, Director Harry L. You acquired 1,000 shares of the company's stock in a transaction dated Thursday, June 11th. The stock was acquired at an average cost of $373.57 per share, for a total transaction of $373,570.00. Following the acquisition, the director directly owned 38,466 shares in the company, valued at approximately $14,369,743.62. This represents a 2.67% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Justine Page sold 1,602 shares of the stock in a transaction on Monday, June 29th. The stock was sold at an average price of $373.86, for a total value of $598,923.72. Following the completion of the transaction, the director directly owned 17,426 shares in the company, valued at $6,514,884.36. This trade represents a 8.42% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 61,644 shares of company stock worth $24,016,214 in the last 90 days. Company insiders own 1.90% of the company's stock.

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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