Pincus Capital Management LP Takes $2.17 Million Position in Broadcom Inc. $AVGO

Key Points

• Pincus Capital Management LP opened a new position in Broadcom during the fourth quarter, buying 6,276 shares worth about $2.17 million. The stake now makes Broadcom Pincus’s 15th-largest holding.
• Institutional interest remains strong, with 76.43% of Broadcom shares owned by institutions, while several analysts recently raised ratings and price targets. The stock currently carries a consensus “Moderate Buy” rating with an average target of about $490.13.
• Broadcom reported better-than-expected quarterly results, including EPS of $2.44 on revenue of $22.19 billion, but the stock was still under pressure and fell 7.9% amid concerns that the AI outlook did not exceed expectations enough. The company also declared a quarterly dividend of $0.65 per share.

Pincus Capital Management LP purchased a new stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) during the 4th quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor purchased 6,276 shares of the semiconductor manufacturer's stock, valued at approximately $2,172,000. Broadcom accounts for 1.4% of Pincus Capital Management LP's holdings, making the stock its 15th largest position.

Several other hedge funds and other institutional investors have also recently modified their holdings of AVGO. Brighton Jones LLC increased its position in shares of Broadcom by 21.8% during the fourth quarter. Brighton Jones LLC now owns 29,683 shares of the semiconductor manufacturer's stock valued at $6,882,000 after buying an additional 5,322 shares during the period. Revolve Wealth Partners LLC grew its holdings in shares of Broadcom by 10.4% during the fourth quarter. Revolve Wealth Partners LLC now owns 7,997 shares of the semiconductor manufacturer's stock worth $1,854,000 after purchasing an additional 756 shares in the last quarter. United Bank grew its holdings in shares of Broadcom by 76.5% during the first quarter. United Bank now owns 2,339 shares of the semiconductor manufacturer's stock worth $392,000 after purchasing an additional 1,014 shares in the last quarter. Sivia Capital Partners LLC grew its holdings in shares of Broadcom by 10.1% during the second quarter. Sivia Capital Partners LLC now owns 12,693 shares of the semiconductor manufacturer's stock worth $3,499,000 after purchasing an additional 1,160 shares in the last quarter. Finally, Capital & Planning LLC grew its holdings in shares of Broadcom by 10.5% during the second quarter. Capital & Planning LLC now owns 3,983 shares of the semiconductor manufacturer's stock worth $1,098,000 after purchasing an additional 378 shares in the last quarter. 76.43% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

Several research analysts have recently commented on AVGO shares. Erste Group Bank raised Broadcom from a "hold" rating to a "buy" rating in a report on Friday. Oppenheimer reissued an "outperform" rating and set a $535.00 price objective (up from $450.00) on shares of Broadcom in a report on Thursday. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and set a $515.00 price objective (up from $430.00) on shares of Broadcom in a report on Thursday. Weiss Ratings raised Broadcom from a "hold (c+)" rating to a "buy (b-)" rating in a report on Wednesday, May 27th. Finally, UBS Group set a $485.00 price objective on Broadcom and gave the stock a "buy" rating in a report on Thursday. One research 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 stock. According to data from MarketBeat.com, Broadcom presently has a consensus rating of "Moderate Buy" and an average price target of $490.13.

Insiders Place Their Bets

In other Broadcom news, insider Mark David Brazeal sold 50,488 shares of the company's 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 completion of the sale, the insider owned 278,141 shares of the company's stock, valued at $89,450,145.60. This represents a 15.36% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Justine Page sold 2,018 shares of the stock in a transaction that occurred on Wednesday, April 8th. The shares were sold at an average price of $353.00, for a total value of $712,354.00. Following the sale, the director directly owned 18,164 shares of the company's stock, valued at approximately $6,411,892. This trade represents a 10.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 324,282 shares of company stock valued at $106,425,249 over the last 90 days. Company insiders own 1.90% of the company's stock.

Broadcom Stock Down 7.9%

Shares of AVGO opened at $385.73 on Friday. The firm has a market cap of $1.83 trillion, a P/E ratio of 64.29, a P/E/G ratio of 0.86 and a beta of 1.41. The stock has a 50 day simple moving average of $396.22 and a two-hundred day simple moving average of $361.90. The company has a debt-to-equity ratio of 0.71, a current ratio of 2.24 and a quick ratio of 1.73. 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 issued its earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.40 by $0.04. The business had revenue of $22.19 billion during the quarter, compared to analyst estimates of $22.13 billion. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.Broadcom's revenue for the quarter was up 47.9% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.58 earnings per share. On average, analysts forecast that Broadcom Inc. will post 9.97 earnings per share for the current fiscal year.

Broadcom Announces Dividend

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

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

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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