Purkiss Capital Advisors LLC Has $5.66 Million Holdings in Broadcom Inc. $AVGO

Key Points

• Purkiss Capital Advisors cut its Broadcom stake by 11.3% in the fourth quarter, selling 2,072 shares and leaving it with 16,340 shares worth about $5.66 million. Broadcom remained its 6th-largest holding, making up 2.7% of the portfolio.
• Broadcom continues to draw bullish AI-related commentary, with multiple reports highlighting its exposure to custom AI chips, data-center networking, and optical interconnect demand. Several analysts raised price targets, including Citi at $500 and Wells Fargo at $545.
• The company posted strong quarterly results, beating EPS and revenue expectations and growing revenue 29.5% year over year. Broadcom also paid a quarterly dividend of $0.65 per share and currently has a consensus analyst rating of Moderate Buy.

Purkiss Capital Advisors LLC decreased its holdings in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 11.3% in the 4th quarter, according to its most recent 13F filing with the SEC. The fund owned 16,340 shares of the semiconductor manufacturer's stock after selling 2,072 shares during the period. Broadcom makes up 2.7% of Purkiss Capital Advisors LLC's holdings, making the stock its 6th largest position. Purkiss Capital Advisors LLC's holdings in Broadcom were worth $5,655,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds also recently made changes to their positions in the business. Vanguard Group Inc. raised its position in shares of Broadcom by 0.8% during the 4th quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer's stock valued at $167,064,997,000 after acquiring an additional 3,919,715 shares during the last quarter. Invesco Ltd. raised its position in shares of Broadcom by 1.8% during the 3rd quarter. Invesco Ltd. now owns 39,149,651 shares of the semiconductor manufacturer's stock valued at $12,915,861,000 after acquiring an additional 700,021 shares during the last quarter. Legal & General Group Plc raised its position in shares of Broadcom by 2.3% during the 3rd quarter. Legal & General Group Plc now owns 33,450,786 shares of the semiconductor manufacturer's stock valued at $11,035,749,000 after acquiring an additional 748,709 shares during the last quarter. Franklin Resources Inc. raised its position in shares of Broadcom by 4.0% during the 3rd quarter. Franklin Resources Inc. now owns 29,511,195 shares of the semiconductor manufacturer's stock valued at $9,736,038,000 after acquiring an additional 1,124,590 shares during the last quarter. Finally, Amundi raised its position in shares of Broadcom by 3.3% during the 3rd quarter. Amundi now owns 22,216,816 shares of the semiconductor manufacturer's stock valued at $7,453,320,000 after acquiring an additional 716,523 shares during the last quarter. Institutional investors own 76.43% of the company's stock.

Key Stories Impacting Broadcom

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 other news, insider Charlie B. Kawwas sold 39,116 shares of the stock in a transaction dated Tuesday, March 17th. The shares were 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 in the company, valued at $24,000,467.86. This represents a 34.39% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider S. Ram Velaga sold 38,841 shares of the stock in a transaction dated 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 owned 96,147 shares of the company's stock, valued at approximately $30,920,875.20. This represents a 28.77% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 324,282 shares of company stock worth $106,425,249 in the last 90 days. Company insiders own 1.90% of the company's stock.

Broadcom Price Performance

AVGO opened at $425.19 on Monday. The company has a quick ratio of 1.73, a current ratio of 1.90 and a debt-to-equity ratio of 0.80. Broadcom Inc. has a 12 month low of $221.60 and a 12 month high of $442.36. The company has a fifty day simple moving average of $365.61 and a 200 day simple moving average of $354.56. The stock has a market cap 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 (NASDAQ:AVGO - Get Free Report) last released its quarterly earnings data on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 EPS 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 analysts' expectations of $19.10 billion. Broadcom had a net margin of 36.57% and a return on equity of 38.61%. The firm's quarterly revenue was up 29.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.60 EPS. On average, research analysts expect that Broadcom Inc. will post 9.95 EPS for the current year.

Broadcom Dividend Announcement

The company also recently announced 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 yield of 0.6%. The ex-dividend date was Monday, March 23rd. Broadcom's dividend payout ratio is 50.78%.

Analysts Set New Price Targets

Several brokerages have commented on AVGO. Weiss Ratings cut shares of Broadcom from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, April 24th. TD Cowen reiterated a "buy" rating and set a $500.00 target price (up from $405.00) on shares of Broadcom in a research report on Friday. Benchmark reiterated a "buy" rating and set a $485.00 target price on shares of Broadcom in a research report on Thursday, March 5th. DA Davidson upgraded shares of Broadcom to a "hold" rating in a research report on Friday, February 13th. Finally, Rosenblatt Securities restated a "buy" rating and issued a $500.00 price objective on shares of Broadcom in a research report on Tuesday, April 7th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $441.63.

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.

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