Pekin Hardy Strauss Inc. Raises Stake in Broadcom Inc. $AVGO

Key Points

• Pekin Hardy Strauss raised its stake in Broadcom by 388.4% in Q4 to 4,664 shares, valued at about $1.614 million, while institutional ownership totals roughly 76.4%.
• Significant insider selling occurred on March 17 (S. Ram Velaga and Charlie B. Kawwas each sold ~39k shares) and insiders have offloaded 324,282 shares (~$106.4M) in the past 90 days; insiders now own ~1.9% of the stock.
• Strong fundamentals and AI momentum: Broadcom reported Q4 revenue of $19.31 billion (up 29.5% YoY) and an EPS beat, management is highlighting rapid AI-driven revenue growth, and analysts collectively rate the stock a "Moderate Buy" with an average target of $435.30.

Pekin Hardy Strauss Inc. increased its stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 388.4% during the fourth quarter, according to its most recent filing with the SEC. The fund owned 4,664 shares of the semiconductor manufacturer's stock after buying an additional 3,709 shares during the quarter. Pekin Hardy Strauss Inc.'s holdings in Broadcom were worth $1,614,000 at the end of the most recent quarter.

Other institutional investors have also added to or reduced their stakes in the company. Miller Global Investments LLC purchased a new stake in Broadcom during the fourth quarter valued at about $31,000. JCIC Asset Management Inc. purchased a new stake in Broadcom during the third quarter valued at about $31,000. Nvest Wealth Strategies Inc. purchased a new stake in Broadcom during the fourth quarter valued at about $33,000. Family CFO Inc purchased a new stake in Broadcom during the fourth quarter valued at about $35,000. Finally, Manning & Napier Advisors LLC purchased a new stake in Broadcom during the third quarter valued at about $34,000. 76.43% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at Broadcom

In other Broadcom news, insider S. Ram Velaga sold 38,841 shares of the stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $321.60, for a total transaction of $12,491,265.60. Following the transaction, the insider directly owned 96,147 shares in the company, valued at $30,920,875.20. This trade represents a 28.77% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Charlie B. Kawwas sold 39,116 shares of the stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $321.61, for a total transaction of $12,580,096.76. Following the transaction, the insider owned 74,626 shares in the company, valued at $24,000,467.86. The trade was a 34.39% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 324,282 shares of company stock valued at $106,425,249 in the last ninety days. 1.90% of the stock is currently owned by company insiders.

Broadcom Stock Down 0.4%

AVGO stock opened at $425.44 on Thursday. The company has a current ratio of 1.90, a quick ratio of 1.73 and a debt-to-equity ratio of 0.80. The company's 50 day moving average is $351.15 and its 200 day moving average is $350.83. The stock has a market cap of $2.01 trillion, a price-to-earnings ratio of 83.09, a price-to-earnings-growth ratio of 0.88 and a beta of 1.43. Broadcom Inc. has a 1-year low of $198.43 and a 1-year high of $437.68.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its quarterly earnings data on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share for the quarter, topping the consensus estimate of $2.03 by $0.02. The company had revenue of $19.31 billion for the quarter, compared to analysts' expectations of $19.10 billion. Broadcom had a net margin of 36.57% and a return on equity of 38.61%. Broadcom's revenue for the quarter was up 29.5% compared to the same quarter last year. During the same period in the prior year, the business earned $1.60 earnings per share. Sell-side analysts predict that Broadcom Inc. will post 9.95 EPS for the current fiscal year.

Broadcom Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, March 31st. Investors of record on Monday, March 23rd were given a $0.65 dividend. This represents a $2.60 annualized dividend and a dividend yield of 0.6%. The ex-dividend date was Monday, March 23rd. Broadcom's dividend payout ratio is 50.78%.

Broadcom News Roundup

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Management guidance and commentary continue to point to rapid AI-driven revenue growth, reinforcing the company’s core growth narrative and supporting premium multiples. MSN: Broadcom guidance reveals breakneck AI revenue growth TheStreet: Broadcom guidance reveals one signal
• Positive Sentiment: Broadcom is cited as a hyperscale customer in Corning’s large fiber/pipeline contracts, which signals sustained capital spending across data-center supply chains that benefits Broadcom’s infrastructure franchise. MarketBeat: Corning article referencing Broadcom
• Positive Sentiment: Product/integration momentum: Broadcom announced VMware Cloud Foundation 9.1 aimed at production AI infrastructure, underscoring the software + silicon positioning that can deepen customer relationships and recurring revenue. GlobeNewswire: VMware Cloud Foundation 9.1
• Neutral Sentiment: Analyst write-ups and screens (Zacks and other outlets) highlight AVGO as a trending/high‑ROE/dividend-growth name — bullish narratives that may already be priced in after recent gains. Zacks: AVGO trending stock
• Neutral Sentiment: Broadcom was part of a broader “hot chip” rally that pushed several names to 52‑week highs; sector momentum helps AVGO but also raises short‑term volatility and profit‑taking risk. MSN: 52-week highs amid hot chip rally
• Negative Sentiment: Technical/competitive risk: packaging and interposer dynamics in high‑end AI chips (e.g., alternatives like Intel’s EMIB approach) could shift design wins or cost structures in ways that affect share of wallet for certain ecosystem players. 247WallSt: AI chip packaging constraints / Intel EMIB

Analyst Ratings Changes

Several research firms have commented on AVGO. Morgan Stanley upped their price objective on shares of Broadcom from $462.00 to $470.00 and gave the company an "overweight" rating in a report on Friday, March 6th. Citigroup upped their price objective on shares of Broadcom from $458.00 to $475.00 and gave the company a "buy" rating in a report on Thursday, March 5th. Wells Fargo & Company raised shares of Broadcom from an "equal weight" rating to an "overweight" rating and upped their price objective for the company from $410.00 to $430.00 in a report on Thursday, January 15th. Rosenblatt Securities reaffirmed a "buy" rating and set a $500.00 price objective on shares of Broadcom in a report on Tuesday, April 7th. Finally, Royal Bank Of Canada decreased their price target on Broadcom from $370.00 to $340.00 and set a "sector perform" rating on the stock in a research report on Monday, March 2nd. Two research analysts have rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat.com, Broadcom presently has an average rating of "Moderate Buy" and an average target price of $435.30.

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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