OPTIMAS CAPITAL Ltd Makes New Investment in Broadcom Inc. $AVGO

Key Points

• OPTIMAS CAPITAL Ltd opened a new position in Broadcom during the fourth quarter, buying 7,360 shares valued at about $2.55 million. The stake represents roughly 2.8% of its portfolio and is now its 12th-largest holding.
• Broadcom’s latest quarterly results were strong, with EPS of $2.44 beating estimates and revenue of $22.19 billion topping expectations. Revenue rose 47.9% year over year, and management continues to highlight robust AI semiconductor demand.
• Despite the solid fundamentals, the stock has faced some pressure as investors reassess the AI growth outlook; Broadcom also announced a $0.65 quarterly dividend payable June 30. Wall Street remains broadly positive, with the consensus rating at Moderate Buy and an average price target of about $490.13.

OPTIMAS CAPITAL Ltd purchased a new position in Broadcom Inc. (NASDAQ:AVGO - Free Report) in the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm purchased 7,360 shares of the semiconductor manufacturer's stock, valued at approximately $2,547,000. Broadcom accounts for approximately 2.8% of OPTIMAS CAPITAL Ltd's portfolio, making the stock its 12th largest position.

Several other hedge funds also recently made changes to their positions in AVGO. Argent Advisors Inc. lifted its holdings in Broadcom by 1.8% during the 4th quarter. Argent Advisors Inc. now owns 3,235 shares of the semiconductor manufacturer's stock worth $1,120,000 after purchasing an additional 56 shares in the last quarter. Avise Financial Cooperative Inc. purchased a new position in Broadcom during the 4th quarter valued at about $270,000. Vista Cima Wealth Management LLC grew its holdings in Broadcom by 53.9% during the 4th quarter. Vista Cima Wealth Management LLC now owns 7,507 shares of the semiconductor manufacturer's stock valued at $2,598,000 after buying an additional 2,628 shares in the last quarter. Vise Technologies Inc. increased its position in shares of Broadcom by 44.9% during the fourth quarter. Vise Technologies Inc. now owns 140,379 shares of the semiconductor manufacturer's stock valued at $48,585,000 after buying an additional 43,506 shares during the period. Finally, Continuum Advisory LLC lifted its holdings in shares of Broadcom by 5.6% in the fourth quarter. Continuum Advisory LLC now owns 14,221 shares of the semiconductor manufacturer's stock worth $4,922,000 after buying an additional 756 shares in the last quarter. 76.43% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on AVGO. TD Cowen restated a "buy" rating and issued a $500.00 price objective on shares of Broadcom in a research report on Thursday. Zacks Research cut shares of Broadcom from a "strong-buy" rating to a "hold" rating in a research note on Thursday, May 21st. Truist Financial raised their price target on shares of Broadcom from $545.00 to $550.00 and gave the company a "buy" rating in a report on Thursday. Erste Group Bank upgraded shares of Broadcom from a "hold" rating to a "buy" rating in a research report on Friday. Finally, KeyCorp reaffirmed an "overweight" rating and issued a $575.00 price target (up from $500.00) on shares of Broadcom in a report on Thursday. One research analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat, Broadcom currently has an average rating of "Moderate Buy" and a consensus target price of $490.13.

Broadcom Stock Performance

Shares of AVGO opened at $385.73 on Monday. The firm's 50 day simple moving average is $396.22 and its 200 day simple moving average is $362.04. The company has a market capitalization of $1.83 trillion, a P/E ratio of 64.29, a P/E/G ratio of 0.70 and a beta of 1.41. The company has a debt-to-equity ratio of 0.71, a current ratio of 2.24 and a quick ratio of 2.01. Broadcom Inc. has a 1-year low of $241.11 and a 1-year high of $495.00.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its quarterly earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, topping analysts' consensus estimates of $2.40 by $0.04. The business had revenue of $22.19 billion during the quarter, compared to analysts' expectations of $22.13 billion. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The business's quarterly revenue was up 47.9% compared to the same quarter last year. During the same quarter in the previous year, the company earned $1.58 EPS. Sell-side analysts forecast that Broadcom Inc. will post 9.97 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 22nd will be paid a $0.65 dividend. This represents a $2.60 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend is Monday, June 22nd. Broadcom's dividend payout ratio is currently 43.33%.

Insider Transactions at Broadcom

In other news, insider Mark David Brazeal sold 50,488 shares of the stock in a transaction dated 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 transaction, the insider directly owned 278,141 shares in the company, valued at approximately $89,450,145.60. This represents a 15.36% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Charlie B. Kawwas sold 39,116 shares of the firm's 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 transaction, the insider directly owned 74,626 shares in the company, valued at approximately $24,000,467.86. This represents a 34.39% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 324,282 shares of company stock worth $106,425,249 in the last three months. Insiders own 1.90% of the company's stock.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom posted record quarterly revenue, beat earnings estimates, and said AI semiconductor demand remains strong, supporting the long-term growth story. Broadcom Q2 Earnings Surpasses Estimates, Revenues Surge Y/Y
• Positive Sentiment: Several analysts remain bullish and raised price targets after the pullback, arguing the market is overreacting to expectations rather than fundamentals. Goldman Sachs urges investors to buy Broadcom dip with still AI revenue trajectory intact
• Positive Sentiment: Management still expects AI revenue to reach $56 billion in fiscal 2026 and more than $100 billion in fiscal 2027, keeping the longer-term AI thesis intact. AVGO Shares Drop 13% Post Q2 Results: Buy, Sell or Hold on the Dip?
• Neutral Sentiment: Broadcom also declared a quarterly dividend, which is supportive for income investors but not a major near-term stock driver.
• Negative Sentiment: The stock is under pressure because the AI outlook, while strong, was not upgraded enough to satisfy investors who had priced in an even bigger upside surprise. Broadcom's sales and AI chip forecast comes in below expectations, shares tumble
• Negative Sentiment: The disappointment has spilled over into the semiconductor sector, pressuring peers such as AMD, Intel, Micron, and Marvell as investors reassess AI trade valuations. Intel, AMD stocks slide again in aftermath of Broadcom's weak outlook

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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