Peterson Wealth Management Trims Stake in Broadcom Inc. $AVGO

Key Points

• Peterson Wealth Management cut its Broadcom stake by 45.9% in the fourth quarter, selling 3,566 shares and leaving it with 4,207 shares valued at about $1.46 million.
• Broadcom’s fundamentals remain strong: the company recently beat quarterly EPS and revenue estimates, with revenue up 29.5% year over year and net margin above 36%.
• Analyst sentiment is still generally positive, with several firms maintaining or raising price targets; Broadcom currently has a Moderate Buy consensus and a target price of $441.63.

Peterson Wealth Management reduced its position in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 45.9% during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 4,207 shares of the semiconductor manufacturer's stock after selling 3,566 shares during the quarter. Broadcom accounts for approximately 1.1% of Peterson Wealth Management's holdings, making the stock its 20th biggest holding. Peterson Wealth Management's holdings in Broadcom were worth $1,456,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Arrowstreet Capital Limited Partnership grew its stake in Broadcom by 499.4% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 5,634,232 shares of the semiconductor manufacturer's stock worth $1,858,789,000 after acquiring an additional 4,694,313 shares in the last quarter. Vanguard Group Inc. grew its stake in Broadcom by 0.8% in the 4th quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer's stock worth $167,064,997,000 after acquiring an additional 3,919,715 shares in the last quarter. Nordea Investment Management AB grew its stake in Broadcom by 47.5% in the 4th quarter. Nordea Investment Management AB now owns 9,814,757 shares of the semiconductor manufacturer's stock worth $3,406,211,000 after acquiring an additional 3,160,586 shares in the last quarter. Danske Bank A S bought a new position in Broadcom in the 3rd quarter worth about $987,488,000. Finally, PFA Pension Forsikringsaktieselskab bought a new position in Broadcom in the 4th quarter worth about $924,858,000. 76.43% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on the stock. Citigroup restated a "buy" rating and issued a $500.00 target price (up from $475.00) on shares of Broadcom in a research note on Tuesday. Royal Bank Of Canada dropped their target price on shares of Broadcom from $370.00 to $340.00 and set a "sector perform" rating on the stock in a research note on Monday, March 2nd. Rosenblatt Securities reaffirmed a "buy" rating and issued a $500.00 price target on shares of Broadcom in a research report on Tuesday, April 7th. Benchmark reaffirmed a "buy" rating and issued a $485.00 price target on shares of Broadcom in a research report on Thursday, March 5th. Finally, DA Davidson raised shares of Broadcom to a "hold" rating in a research report on Friday, February 13th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $441.63.

Broadcom Stock Down 3.3%

Shares of NASDAQ AVGO opened at $425.19 on Friday. The company's 50-day simple moving average is $365.61 and its 200-day simple moving average is $354.62. Broadcom Inc. has a 52-week low of $221.60 and a 52-week high of $442.36. The firm has a market cap of $2.01 trillion, a price-to-earnings ratio of 83.05, a price-to-earnings-growth ratio of 0.88 and a beta of 1.43. The company has a quick ratio of 1.73, a current ratio of 1.90 and a debt-to-equity ratio of 0.80.

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

Broadcom Announces Dividend

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

Insiders Place Their Bets

In related news, insider S. Ram Velaga sold 8,000 shares of the company's stock in a transaction that occurred on Friday, April 10th. The shares were sold at an average price of $370.52, for a total transaction of $2,964,160.00. Following the sale, the insider directly owned 57,932 shares of the company's stock, valued at $21,464,964.64. This represents a 12.13% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Charlie B. Kawwas sold 10,000 shares of the business's stock in a transaction that occurred on Wednesday, April 8th. The stock was sold at an average price of $345.23, for a total transaction of $3,452,300.00. Following the transaction, 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 position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 324,282 shares of company stock worth $106,425,249. 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 remains a favored way to play AI infrastructure, with multiple recent articles highlighting its growing exposure to custom AI silicon, data-center networking, and AI semiconductor revenue. Citi also raised its price target to $500, reinforcing optimism ahead of the next earnings report.
• Positive Sentiment: Wells Fargo lifted its price target to $545 and said AI semiconductor revenue is running 30% to 40% above expectations, suggesting Broadcom may still be benefiting from stronger-than-expected hyperscaler spending.
• Positive Sentiment: Recent investor interest has also been supportive, with hedge fund and prominent manager buying cited in several notes, alongside Broadcom being named among top tech stocks to own as AI optimism continues to drive the market.
• Neutral Sentiment: Broadcom was also mentioned in a broader AI rotation piece that argues the next leg of the rally may be in AI bottlenecks such as optics, networking, and memory rather than only the most obvious chip winners. Broadcom was specifically named as one of the companies positioned to benefit from optical interconnect demand.
• Negative Sentiment: UBS warned that AI stocks, including Broadcom, are increasingly crowded trades, raising the risk of a pullback if enthusiasm cools or if investors rotate out of mega-cap semiconductors.
• Negative Sentiment: Some commentary also suggests the AI chip rally may be masking broader market weakness, which can make even strong names like Broadcom vulnerable to profit-taking after a powerful advance.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.