Proem Advisors LLC Grows Holdings in Broadcom Inc. $AVGO

Key Points

• Proem Advisors LLC increased its Broadcom stake by 5% in the fourth quarter, adding 3,500 shares to bring its total to 73,500 shares worth about $25.4 million. Broadcom is now the fund’s sixth-largest position and makes up roughly 2.9% of its portfolio.
• Broadcom’s latest earnings beat expectations, with quarterly EPS of $2.05 versus estimates of $2.03 and revenue of $19.31 billion versus $19.10 billion expected. Revenue rose 29.5% year over year, underscoring continued strength in the business.
• Analysts remain generally positive on AVGO, with several firms raising price targets and the stock carrying an overall “Moderate Buy” rating and average target price of $441.63. At the same time, insiders have been selling shares, including recent notable sales by directors and executives.

Proem Advisors LLC grew its stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 5.0% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 73,500 shares of the semiconductor manufacturer's stock after buying an additional 3,500 shares during the period. Broadcom accounts for about 2.9% of Proem Advisors LLC's investment portfolio, making the stock its 6th largest position. Proem Advisors LLC's holdings in Broadcom were worth $25,438,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors and hedge funds have also recently modified their holdings of the business. Money Concepts Capital Corp grew its holdings in shares of Broadcom by 11.4% in the fourth quarter. Money Concepts Capital Corp now owns 12,178 shares of the semiconductor manufacturer's stock valued at $4,215,000 after purchasing an additional 1,242 shares in the last quarter. Bailard Inc. boosted its stake in Broadcom by 9.9% during the fourth quarter. Bailard Inc. now owns 125,712 shares of the semiconductor manufacturer's stock worth $43,509,000 after buying an additional 11,338 shares during the period. First National Advisers LLC boosted its stake in Broadcom by 4.5% during the fourth quarter. First National Advisers LLC now owns 49,317 shares of the semiconductor manufacturer's stock worth $17,069,000 after buying an additional 2,123 shares during the period. Mascoma Wealth Management LLC boosted its stake in Broadcom by 3.5% during the fourth quarter. Mascoma Wealth Management LLC now owns 1,148 shares of the semiconductor manufacturer's stock worth $397,000 after buying an additional 39 shares during the period. Finally, Concentrum Wealth Management boosted its stake in Broadcom by 29.8% during the fourth quarter. Concentrum Wealth Management now owns 7,661 shares of the semiconductor manufacturer's stock worth $2,652,000 after buying an additional 1,758 shares during the period. 76.43% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several research analysts have commented on the stock. Truist Financial lifted their price objective on shares of Broadcom from $510.00 to $545.00 and gave the stock a "buy" rating in a research note on Thursday, March 5th. DA Davidson raised shares of Broadcom to a "hold" rating in a research note on Friday, February 13th. Wells Fargo & Company reaffirmed an "overweight" rating and set a $545.00 price objective (up from $430.00) on shares of Broadcom in a research note on Thursday. Royal Bank Of Canada dropped their price objective on shares of Broadcom from $370.00 to $340.00 and set a "sector perform" rating for the company in a research note on Monday, March 2nd. Finally, Wolfe Research raised shares of Broadcom from a "peer perform" rating to an "outperform" rating and set a $400.00 price objective for the company in a research note on Friday, January 30th. Two research analysts have rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Broadcom currently has an average rating of "Moderate Buy" and an average target price of $441.63.

Broadcom Price Performance

Shares of AVGO opened at $425.19 on Monday. The firm has a market capitalization of $2.01 trillion, a P/E ratio of 83.05, a P/E/G ratio of 0.88 and a beta of 1.43. Broadcom Inc. has a 12-month low of $221.60 and a 12-month high of $442.36. 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 firm has a fifty day moving average price of $365.61 and a 200-day moving average price of $354.56.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its quarterly earnings data on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share for the quarter, beating the consensus estimate of $2.03 by $0.02. The firm had revenue of $19.31 billion during the quarter, compared to the consensus estimate of $19.10 billion. Broadcom had a return on equity of 38.61% and a net margin of 36.57%.The firm's quarterly revenue was up 29.5% on a year-over-year basis. During the same period in the previous year, the company posted $1.60 earnings per share. Equities research analysts expect that Broadcom Inc. will post 9.95 earnings per share for the current year.

Broadcom Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, March 31st. Investors of record on Monday, March 23rd were issued 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 payout ratio is presently 50.78%.

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.

Insider Transactions at Broadcom

In related news, Director Gayla J. Delly sold 1,000 shares of Broadcom stock in a transaction dated Thursday, April 9th. The stock was sold at an average price of $358.31, for a total value of $358,310.00. Following the completion of the sale, the director directly owned 32,352 shares in the company, valued at $11,592,045.12. The trade was a 3.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, insider Mark David Brazeal sold 50,488 shares of Broadcom stock in a transaction dated Tuesday, March 17th. The shares were 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. The trade was a 15.36% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 324,282 shares of company stock valued at $106,425,249 over the last three months. 1.90% of the stock is currently owned by corporate insiders.

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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