Prudential PLC Purchases 3,093 Shares of Broadcom Inc. $AVGO

Key Points

• Prudential PLC increased its Broadcom stake by 0.6% in the fourth quarter, buying 3,093 more shares and bringing its total to 522,432 shares worth about $180.8 million.
• Broadcom’s latest results were strong, with quarterly EPS of $2.44 topping estimates and revenue of $22.19 billion rising 47.9% year over year, driven by continued AI semiconductor demand.
• Wall Street remains largely bullish on AVGO, with most analysts rating it a Buy and an average price target around $490, even as recent guidance concerns have pressured the stock and the broader semiconductor sector.

Prudential PLC boosted its position in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 0.6% during the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 522,432 shares of the semiconductor manufacturer's stock after purchasing an additional 3,093 shares during the period. Broadcom comprises 1.4% of Prudential PLC's holdings, making the stock its 12th biggest holding. Prudential PLC's holdings in Broadcom were worth $180,814,000 at the end of the most recent quarter.

Several other large investors have also modified their holdings of the business. Baring Financial LLC raised its holdings in shares of Broadcom by 2.2% in the fourth quarter. Baring Financial LLC now owns 1,359 shares of the semiconductor manufacturer's stock worth $470,000 after buying an additional 29 shares during the period. Five Oceans Advisors grew its position in Broadcom by 0.4% in the 4th quarter. Five Oceans Advisors now owns 8,191 shares of the semiconductor manufacturer's stock valued at $2,835,000 after acquiring an additional 29 shares during the last quarter. Planning Alternatives Ltd. ADV lifted its position in shares of Broadcom by 1.4% during the third quarter. Planning Alternatives Ltd. ADV now owns 2,168 shares of the semiconductor manufacturer's stock worth $715,000 after purchasing an additional 30 shares during the last quarter. Bell Investment Advisors Inc boosted its stake in shares of Broadcom by 1.9% during the third quarter. Bell Investment Advisors Inc now owns 1,638 shares of the semiconductor manufacturer's stock valued at $540,000 after purchasing an additional 30 shares during the period. Finally, Black Diamond Financial LLC grew its holdings in shares of Broadcom by 3.2% in the third quarter. Black Diamond Financial LLC now owns 1,008 shares of the semiconductor manufacturer's stock worth $333,000 after purchasing an additional 31 shares during the last quarter. Hedge funds and other institutional investors own 76.43% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on AVGO. Benchmark lifted their price objective on shares of Broadcom from $485.00 to $545.00 and gave the company a "buy" rating in a report on Thursday. Evercore restated an "outperform" rating and issued a $582.00 target price on shares of Broadcom in a research note on Tuesday, May 19th. Erste Group Bank raised shares of Broadcom from a "hold" rating to a "buy" rating in a research report on Friday. UBS Group set a $485.00 price target on shares of Broadcom and gave the company a "buy" rating in a research note on Thursday. Finally, Seaport Research Partners reissued a "neutral" rating on shares of Broadcom in a research note on Wednesday, April 8th. One investment 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 company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $490.13.

Broadcom News Summary

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

Insider Activity at Broadcom

In other news, Director Justine Page sold 2,018 shares of the business's stock in a transaction on Wednesday, April 8th. The stock was sold at an average price of $353.00, for a total value of $712,354.00. Following the completion of the transaction, the director directly owned 18,164 shares of the company's stock, valued at approximately $6,411,892. The trade was a 10.00% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Charlie B. Kawwas sold 10,000 shares of the company's stock in a transaction on Wednesday, April 8th. The stock was sold at an average price of $345.23, for a total value of $3,452,300.00. Following the sale, 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 ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 324,282 shares of company stock valued at $106,425,249 over the last 90 days. Insiders own 1.90% of the company's stock.

Broadcom Price Performance

Shares of Broadcom stock opened at $385.73 on Monday. The company has a debt-to-equity ratio of 0.71, a current ratio of 2.24 and a quick ratio of 2.01. The stock has a market cap of $1.83 trillion, a price-to-earnings ratio of 64.29, a PEG ratio of 0.70 and a beta of 1.41. The firm's 50-day moving average is $396.22 and its two-hundred day moving average is $362.04. 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 posted its quarterly earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, beating the consensus estimate of $2.40 by $0.04. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The business had revenue of $22.19 billion during the quarter, compared to analyst estimates of $22.13 billion. During the same quarter in the previous year, the business posted $1.58 EPS. The company's quarterly revenue was up 47.9% compared to the same quarter last year. As a group, research analysts expect that Broadcom Inc. will post 9.97 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Investors 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 dividend on an annualized basis and a yield of 0.7%. Broadcom's payout ratio is 43.33%.

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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