PKO Investment Management Joint Stock Co Has $31.15 Million Stake in Broadcom Inc. $AVGO

Key Points

• PKO Investment Management reduced its Broadcom stake by 10% in the fourth quarter, selling 10,000 shares and leaving it with 90,000 shares worth about $31.15 million. Broadcom remained its 6th largest holding and made up 2.5% of its portfolio.
• Broadcom is drawing mixed attention from the market: reports say an OpenAI $18 billion custom chip deal hit a financing snag, potentially clouding a key AI growth driver, while other commentary remains constructive on its AI infrastructure role.
• The company recently delivered solid results, with Q2 earnings and revenue both beating estimates, and analysts still broadly rate the stock a Moderate Buy with an average price target of about $435.30.

PKO Investment Management Joint Stock Co cut its stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 10.0% in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 90,000 shares of the semiconductor manufacturer's stock after selling 10,000 shares during the quarter. Broadcom makes up 2.5% of PKO Investment Management Joint Stock Co's portfolio, making the stock its 6th largest holding. PKO Investment Management Joint Stock Co's holdings in Broadcom were worth $31,149,000 as of its most recent filing with the Securities and Exchange Commission.

Several other institutional investors also recently made changes to their positions in AVGO. Arrowstreet Capital Limited Partnership grew its holdings in shares of Broadcom by 499.4% during the third quarter. Arrowstreet Capital Limited Partnership now owns 5,634,232 shares of the semiconductor manufacturer's stock valued at $1,858,789,000 after purchasing an additional 4,694,313 shares during the last quarter. Vanguard Group Inc. grew its holdings in shares of Broadcom by 0.8% during the fourth quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer's stock valued at $167,064,997,000 after purchasing an additional 3,919,715 shares during the last quarter. Nordea Investment Management AB grew its holdings in shares of Broadcom by 47.5% during the fourth quarter. Nordea Investment Management AB now owns 9,814,757 shares of the semiconductor manufacturer's stock valued at $3,406,211,000 after purchasing an additional 3,160,586 shares during the last quarter. Danske Bank A S bought a new position in shares of Broadcom during the third quarter valued at approximately $987,488,000. Finally, PFA Pension Forsikringsaktieselskab bought a new position in shares of Broadcom during the fourth quarter valued at approximately $924,858,000. 76.43% of the stock is owned by institutional investors.

Key Headlines 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

Shares of AVGO stock opened at $430.00 on Friday. Broadcom Inc. has a 12-month low of $206.52 and a 12-month high of $437.68. The firm has a market capitalization of $2.04 trillion, a price-to-earnings ratio of 83.98, a price-to-earnings-growth ratio of 0.89 and a beta of 1.43. The business has a 50 day simple moving average of $352.89 and a 200 day simple moving average of $351.28. The company has a debt-to-equity ratio of 0.80, a current ratio of 1.90 and a quick ratio of 1.73.

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

Broadcom Announces Dividend

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

Wall Street Analyst Weigh In

Several research firms have recently commented on AVGO. Wells Fargo & Company raised Broadcom from an "equal weight" rating to an "overweight" rating and upped their target price for the company from $410.00 to $430.00 in a report on Thursday, January 15th. Morgan Stanley increased their price objective on Broadcom from $462.00 to $470.00 and gave the stock an "overweight" rating in a report on Friday, March 6th. DA Davidson raised Broadcom to a "hold" rating in a report on Friday, February 13th. Bank of America decreased their price objective on Broadcom from $500.00 to $450.00 and set a "buy" rating for the company in a report on Thursday, March 5th. Finally, Benchmark reissued a "buy" rating and issued a $485.00 price objective on shares of Broadcom in a report on Thursday, March 5th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat, Broadcom currently has an average rating of "Moderate Buy" and a consensus price target of $435.30.

Insider Transactions at Broadcom

In other Broadcom news, insider Charlie B. Kawwas sold 39,116 shares of the stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $321.61, for a total transaction of $12,580,096.76. Following the completion of the transaction, the insider directly owned 74,626 shares of the company's stock, valued at approximately $24,000,467.86. This trade represents a 34.39% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider S. Ram Velaga sold 38,841 shares of the stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $321.60, for a total value of $12,491,265.60. Following the transaction, the insider directly owned 96,147 shares of the company's stock, valued at approximately $30,920,875.20. The trade was a 28.77% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 324,282 shares of company stock valued at $106,425,249. Company insiders own 1.90% of the company's stock.

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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