Norges Bank Takes $24.25 Billion Position in Broadcom Inc. $AVGO

Key Points

• Norges Bank disclosed a new fourth-quarter stake in Broadcom worth about $24.25 billion, making the semiconductor maker its 6th-largest holding.
• Broadcom continues to attract heavy institutional interest, with 76.43% of shares held by hedge funds and other investors, while some insiders have recently sold stock.
• The company’s latest results and outlook remain strong: Broadcom beat quarterly earnings and revenue estimates, and analysts still largely rate the stock a Moderate Buy with a consensus price target of $455.07.

Norges Bank bought a new stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) in the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor bought 70,072,800 shares of the semiconductor manufacturer's stock, valued at approximately $24,252,196,000. Broadcom comprises approximately 2.6% of Norges Bank's holdings, making the stock its 6th largest holding. Norges Bank owned 1.48% of Broadcom at the end of the most recent reporting period.

Other institutional investors and hedge funds have also made changes to their positions in the company. Miller Global Investments LLC purchased a new stake in shares of Broadcom in the fourth quarter valued at about $31,000. Nvest Wealth Strategies Inc. purchased a new stake in shares of Broadcom in the fourth quarter valued at about $33,000. Family CFO Inc purchased a new stake in shares of Broadcom in the fourth quarter valued at about $35,000. PayPay Securities Corp raised its holdings in shares of Broadcom by 88.9% in the fourth quarter. PayPay Securities Corp now owns 119 shares of the semiconductor manufacturer's stock valued at $41,000 after buying an additional 56 shares during the last quarter. Finally, Camelot Portfolios LLC purchased a new stake in shares of Broadcom in the fourth quarter valued at about $45,000. 76.43% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at Broadcom

In other Broadcom news, insider Charlie B. Kawwas sold 39,116 shares of the stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $321.61, for a total value of $12,580,096.76. Following the completion of the transaction, the insider directly owned 74,626 shares of the company's stock, valued at approximately $24,000,467.86. This trade represents a 34.39% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider Mark David Brazeal sold 50,488 shares of the stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $321.60, for a total transaction of $16,236,940.80. Following the completion of the transaction, the insider directly owned 278,141 shares of the company's stock, valued at approximately $89,450,145.60. This trade represents a 15.36% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 324,282 shares of company stock valued at $106,425,249. 1.90% of the stock is currently owned by corporate insiders.

Broadcom Price Performance

Shares of NASDAQ:AVGO opened at $481.57 on Wednesday. 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 cap of $2.28 trillion, a P/E ratio of 94.06, a PEG ratio of 0.95 and a beta of 1.41. Broadcom Inc. has a 52 week low of $241.11 and a 52 week high of $488.82. The company has a 50-day moving average price of $386.31 and a 200 day moving average price of $359.32.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its 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. Broadcom had a net margin of 36.57% and a return on equity of 38.61%. The company had revenue of $19.31 billion during the quarter, compared to analysts' expectations of $19.10 billion. During the same period last year, the company posted $1.60 earnings per share. The firm's quarterly revenue was up 29.5% compared to the same quarter last year. Research analysts predict that Broadcom Inc. will post 9.91 earnings per share for the current year.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on AVGO shares. Seaport Research Partners reaffirmed a "neutral" rating on shares of Broadcom in a report on Wednesday, April 8th. Weiss Ratings upgraded shares of Broadcom from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Wednesday, May 27th. Wall Street Zen downgraded shares of Broadcom from a "buy" rating to a "hold" rating in a research report on Saturday. Bank of America reduced their price objective on shares of Broadcom from $500.00 to $450.00 and set a "buy" rating for the company in a research report on Thursday, March 5th. Finally, Morgan Stanley raised their price objective on shares of Broadcom from $470.00 to $485.00 and gave the company an "overweight" rating in a research report on Monday. One analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $455.07.

Broadcom News Roundup

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 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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