PFA Pension Forsikringsaktieselskab Invests $924.86 Million in Broadcom Inc. $AVGO

Key Points

• PFA Pension reported a major new stake in Broadcom, buying 2.64 million shares valued at about $924.9 million. The position makes Broadcom its 6th-largest holding and about 2.6% of its portfolio.
• Broadcom continues to draw strong institutional interest, with hedge funds and other investors owning 76.43% of the stock. However, insiders have recently been selling shares, including notable sales by S. Ram Velaga and Mark David Brazeal.
• Analysts remain broadly constructive, with a consensus rating of Moderate Buy and a target price of $435.30. The stock also remains tied to AI-related developments, though reports of an OpenAI custom chip financing snag have added some near-term uncertainty.

PFA Pension Forsikringsaktieselskab bought a new position in Broadcom Inc. (NASDAQ:AVGO - Free Report) in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor bought 2,643,583 shares of the semiconductor manufacturer's stock, valued at approximately $924,858,000. Broadcom comprises 2.6% of PFA Pension Forsikringsaktieselskab's portfolio, making the stock its 6th biggest holding. PFA Pension Forsikringsaktieselskab owned approximately 0.06% of Broadcom as of its most recent SEC filing.

Several other institutional investors and hedge funds also recently made changes to their positions in AVGO. JCIC Asset Management Inc. acquired a new position in shares of Broadcom in the third quarter valued at approximately $31,000. Miller Global Investments LLC acquired a new position in shares of Broadcom in the fourth quarter valued at approximately $31,000. Nvest Wealth Strategies Inc. acquired a new position in shares of Broadcom in the fourth quarter valued at approximately $33,000. Manning & Napier Advisors LLC acquired a new position in shares of Broadcom in the third quarter valued at approximately $34,000. Finally, Family CFO Inc acquired a new position in shares of Broadcom in the fourth quarter valued at approximately $35,000. Institutional investors and hedge funds own 76.43% of the company's stock.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on the company. Zacks Research raised Broadcom from a "hold" rating to a "strong-buy" rating in a research note on Thursday, April 2nd. Rosenblatt Securities reaffirmed a "buy" rating and issued a $500.00 price objective on shares of Broadcom in a research note on Tuesday, April 7th. Royal Bank Of Canada lowered their price objective on Broadcom from $370.00 to $340.00 and set a "sector perform" rating for the company in a research note on Monday, March 2nd. Truist Financial upped their price objective on Broadcom from $510.00 to $545.00 and gave the company a "buy" rating in a research note on Thursday, March 5th. Finally, Bank of America lowered their price objective on Broadcom from $500.00 to $450.00 and set a "buy" rating for the company in a research note on Thursday, March 5th. Two research analysts have rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $435.30.

Insiders Place Their Bets

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 stock was 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 approximately $30,920,875.20. This represents a 28.77% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Mark David Brazeal sold 50,488 shares of the stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $321.60, for a total value of $16,236,940.80. Following the transaction, the insider owned 278,141 shares in the company, valued at $89,450,145.60. The trade was a 15.36% 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 over the last 90 days. 1.90% of the stock is currently owned by corporate insiders.

Key Stories Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Negative Sentiment: Broadcom shares are under pressure after reports said OpenAI’s planned $18 billion custom chip deal with the company hit a financing roadblock, creating uncertainty around a key AI revenue driver. Broadcom shares slump as OpenAI’s $18B custom chip deal hits financing snag
• Negative Sentiment: Another report framed the OpenAI issue as a major setback for Broadcom’s custom AI chip ambitions, adding concern that one of its flagship customer relationships may not be as immediately monetizable as investors hoped. Broadcom's OpenAI mega AI deal hits $18 billion wall
• Neutral Sentiment: Broadcom also announced VMware by Broadcom VCF 9.1, a product update aimed at accelerating production AI workloads in private clouds, which supports the company’s long-term enterprise AI strategy. Broadcom (AVGO) Launches VCF 9.1 to Accelerate Production AI in Private Clouds
• Neutral Sentiment: Several commentary pieces remained constructive on Broadcom’s position in the AI infrastructure stack, noting that recent hyperscaler results still support demand for chips and networking tied to AI buildouts. Big Tech earnings support Broadcom’s outlook
• Neutral Sentiment: Broadcom was also mentioned in a public-sector VMware partnership update, which could help broaden enterprise distribution but is not likely the main driver of the stock today. evoila U.S. and Carahsoft Partner to Deliver VMware by Broadcom Services to the Public Sector

Broadcom Stock Performance

NASDAQ:AVGO opened at $430.00 on Friday. The company has a market capitalization of $2.04 trillion, a PE ratio of 83.98, a P/E/G ratio of 0.85 and a beta of 1.43. The company has a 50 day simple moving average of $352.89 and a two-hundred day simple moving average of $351.28. The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.73 and a current ratio of 1.90. Broadcom Inc. has a fifty-two week low of $206.52 and a fifty-two week high of $437.68.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share for the quarter, beating analysts' consensus estimates of $2.03 by $0.02. The business had revenue of $19.31 billion during the quarter, compared to the consensus estimate 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 in the prior year, the firm posted $1.60 EPS. Research analysts anticipate that Broadcom Inc. will post 9.95 earnings per share for the current year.

Broadcom Announces Dividend

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

Broadcom Company 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.

Want to see what other hedge funds are holding AVGO? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Broadcom Inc. (NASDAQ:AVGO - Free Report).

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.