Orange Investment Advisors Inc. Trims Position in Broadcom Inc. $AVGO

Key Points

• Orange Investment Advisors Inc. cut its Broadcom stake by 30.9% in the first quarter, selling 16,345 shares and leaving it with 36,578 shares valued at about $11.3 million.
• Broadcom reported better-than-expected earnings for the quarter, with EPS of $2.44 and revenue of $22.19 billion, while revenue jumped 47.9% year over year.
• Despite the recent share decline, analysts remain broadly bullish on AVGO, with several firms raising or reaffirming Buy ratings and price targets as high as $582.

Orange Investment Advisors Inc. lessened its stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 30.9% in the 1st quarter, according to its most recent disclosure with the SEC. The institutional investor owned 36,578 shares of the semiconductor manufacturer's stock after selling 16,345 shares during the period. Broadcom comprises approximately 1.5% of Orange Investment Advisors Inc.'s investment portfolio, making the stock its 16th biggest holding. Orange Investment Advisors Inc.'s holdings in Broadcom were worth $11,321,000 at the end of the most recent reporting period.

A number of other large investors have also recently modified their holdings of the company. ROSS JOHNSON & Associates LLC increased its stake in shares of Broadcom by 1,320.0% during the fourth quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer's stock valued at $25,000 after buying an additional 66 shares during the period. SWAN Capital LLC raised its holdings in shares of Broadcom by 261.9% in the fourth quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer's stock valued at $26,000 after acquiring an additional 55 shares in the last quarter. Miller Global Investments LLC purchased a new stake in Broadcom in the fourth quarter worth about $31,000. Nvest Wealth Strategies Inc. bought a new position in Broadcom during the 4th quarter worth about $33,000. Finally, Family CFO Inc bought a new position in Broadcom during the 4th quarter worth about $35,000. Hedge funds and other institutional investors own 76.43% of the company's stock.

Broadcom Trading Down 2.2%

NASDAQ AVGO opened at $369.34 on Thursday. Broadcom Inc. has a 12-month low of $262.73 and a 12-month high of $495.00. The company has a fifty day simple moving average of $410.00 and a two-hundred day simple moving average of $362.34. 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 stock has a market cap of $1.76 trillion, a P/E ratio of 61.56, a P/E/G ratio of 0.66 and a beta of 1.45.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its 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 firm had revenue of $22.19 billion during the quarter, compared to the consensus estimate of $22.13 billion. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.The company's revenue was up 47.9% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.58 earnings per share. On average, analysts forecast that Broadcom Inc. will post 10.24 earnings per share for the current year.

Broadcom Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Monday, June 22nd were issued a $0.65 dividend. 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 payout ratio is presently 43.33%.

Key Headlines Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: UBS reaffirmed a Buy rating on Broadcom and kept a $485 price target, citing strong AI ASIC demand and growth tied to customers like OpenAI and Anthropic. UBS Reaffirms Buy Rating on Broadcom (AVGO) Amid AI ASIC Demand and OpenAI, Anthropic Growth
• Positive Sentiment: Jefferies also reiterated a Buy rating and a $550 price target, reinforcing the view that Broadcom still has meaningful upside from current levels. Analyst updates Broadcom (AVGO) stock price target
• Positive Sentiment: Several articles highlighted Broadcom’s growing role in custom AI silicon and its partnership with OpenAI on the “Jalapeño” AI accelerator, which supports the bullish narrative around its AI revenue opportunity. What Broadcom (AVGO)'s Jalapeño AI Accelerator Partnership With OpenAI Means For Shareholders
• Neutral Sentiment: Erste Group Bank slightly raised FY2026 and FY2027 earnings estimates for Broadcom and kept a Buy rating, adding to the list of supportive but not market-moving analyst updates.
• Neutral Sentiment: Market commentary continues to frame Broadcom as a strong growth stock and a key AI beneficiary, but these are mostly reiterations of the bullish long-term thesis rather than new catalysts.
• Negative Sentiment: Director Justine Page sold 1,602 shares at an average price of $373.86, extending recent insider-selling headlines that can weigh on investor sentiment. SEC Form 4 filing for Justine Page sale
• Negative Sentiment: Broader articles about Broadcom’s recent slump and questions about valuation suggest investors are becoming more cautious after the stock’s strong run, even with bullish analysts arguing the weakness is a buying opportunity.

Insider Buying and Selling

In related news, insider S. Ram Velaga sold 17,260 shares of Broadcom stock in a transaction dated Thursday, April 9th. The stock was sold at an average price of $352.12, for a total value of $6,077,591.20. Following the completion of the transaction, the insider owned 65,932 shares in the company, valued at $23,215,975.84. The trade was a 20.75% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Charlie B. Kawwas sold 10,000 shares of the business's stock in a transaction that occurred on Wednesday, April 8th. The shares were sold at an average price of $345.23, for a total value of $3,452,300.00. Following the completion of the sale, the insider owned 787,184 shares of the company's stock, valued at $271,759,532.32. This trade represents a 1.25% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 60,987 shares of company stock valued at $21,899,980 in the last ninety days. Company insiders own 1.90% of the company's stock.

Analyst Ratings Changes

Several equities analysts recently issued reports on the stock. Evercore reissued an "outperform" rating and set a $582.00 price objective on shares of Broadcom in a report on Tuesday, May 19th. JPMorgan Chase & Co. increased their target price on Broadcom from $500.00 to $580.00 and gave the company an "overweight" rating in a research report on Thursday, June 4th. The Goldman Sachs Group reiterated a "buy" rating and issued a $525.00 price target on shares of Broadcom in a report on Thursday, June 4th. Oppenheimer reissued an "outperform" rating and issued a $535.00 price target (up from $450.00) on shares of Broadcom in a research report on Thursday, June 4th. Finally, Jefferies Financial Group set a $550.00 price objective on Broadcom and gave the stock a "buy" rating in a research note on Thursday, June 4th. One analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, Broadcom currently has a consensus rating of "Moderate Buy" and an average target price of $493.24.

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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