Reflection Asset Management Invests $1.91 Million in Broadcom Inc. $AVGO

Key Points

• Reflection Asset Management opened a new Broadcom position in the fourth quarter, buying 5,515 shares valued at about $1.91 million. The stake makes Broadcom its 16th-largest holding and about 1.3% of the portfolio.
• Broadcom continues to draw heavy institutional and analyst support, with multiple funds adding shares and Wall Street firms maintaining bullish views. The stock now has a consensus rating of Moderate Buy and an average price target of $490.13.
• Recent company updates were broadly positive: Broadcom beat quarterly earnings and revenue estimates, and its debt tender offer was upsized to $3 billion after strong demand. The company also declared a $0.65 quarterly dividend payable June 30.

Reflection Asset Management purchased a new stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) in the 4th quarter, according to its most recent Form 13F filing with the SEC. The firm purchased 5,515 shares of the semiconductor manufacturer's stock, valued at approximately $1,909,000. Broadcom accounts for about 1.3% of Reflection Asset Management's holdings, making the stock its 16th biggest holding.

A number of other institutional investors have also recently modified their holdings of AVGO. CFO Capital Management LLC purchased a new position in shares of Broadcom in the 4th quarter valued at about $4,331,000. Sankala Group LLC purchased a new stake in Broadcom during the fourth quarter worth about $370,000. Tobam boosted its holdings in Broadcom by 101.2% during the fourth quarter. Tobam now owns 23,748 shares of the semiconductor manufacturer's stock worth $8,219,000 after buying an additional 11,942 shares in the last quarter. Clearwave Capital LLC acquired a new position in Broadcom during the fourth quarter worth about $4,378,000. Finally, Wick Capital Partners LLC increased its holdings in Broadcom by 23.9% in the fourth quarter. Wick Capital Partners LLC now owns 2,544 shares of the semiconductor manufacturer's stock valued at $880,000 after buying an additional 491 shares in the last quarter. 76.43% of the stock is currently owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other news, Director Harry L. You bought 1,000 shares of Broadcom stock in a transaction on Thursday, June 11th. The shares were bought at an average cost of $373.57 per share, for a total transaction of $373,570.00. Following the acquisition, the director owned 38,466 shares in the company, valued at approximately $14,369,743.62. This trade represents a 2.67% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, insider Charlie B. Kawwas sold 10,000 shares of the company's stock in a transaction dated Wednesday, April 8th. The shares were sold at an average price of $345.23, for a total transaction of $3,452,300.00. Following the completion of the transaction, the insider owned 787,184 shares in the company, valued at approximately $271,759,532.32. This trade represents a 1.25% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 59,385 shares of company stock valued at $21,301,057. Insiders own 1.90% of the company's stock.

Trending Headlines about Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s debt tender offer was upsized to $3 billion after strong investor demand, signaling active balance-sheet management and reinforcing investor confidence. Broadcom Inc. Announces Results and Upsize of Offers to Purchase for Cash Certain of its Outstanding Debt Securities
• Positive Sentiment: JPMorgan remained bullish on Broadcom, saying investors should be “aggressive buyers,” which supports the view that the market may still be underestimating AVGO’s AI growth. AVGO stock jumps — JPMorgan says investors should be 'aggressive buyers' of Broadcom at current levels
• Positive Sentiment: Citi also called Broadcom a top chip stock on strong data-center demand, adding another bullish Wall Street view tied to AI infrastructure spending. Citi Touts Broadcom Inc. (AVGO) as a Top Chip Stock on Soaring Data Center Demand
• Positive Sentiment: One report said VMware, Broadcom’s second-largest business, may be set to accelerate, which could broaden growth beyond the company’s AI chip exposure. VMware: Broadcom's Second Biggest Business Set to Accelerate
• Neutral Sentiment: Insider Mark David Brazeal sold shares in two June transactions, but the sales were relatively small versus his remaining stake and do not necessarily change the broader investment thesis. Mark David Brazeal insider trading page
• Negative Sentiment: One analyst warned that chip valuations are getting stretched and suggested investors could consider alternatives, including Broadcom, which may temper enthusiasm if valuation concerns intensify. Analyst Warns Intel Valuation ‘Doesn't Make Sense.' Suggests NVIDIA, AMD, Micron, and Broadcom as Alternatives.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on the stock. DA Davidson lifted their price target on shares of Broadcom from $375.00 to $400.00 and gave the company a "neutral" rating in a research report on Thursday, June 4th. Jefferies Financial Group set a $550.00 price objective on Broadcom and gave the company a "buy" rating in a research note on Thursday, June 4th. UBS Group set a $485.00 price objective on Broadcom and gave the stock a "buy" rating in a report on Thursday, June 4th. Wall Street Zen upgraded Broadcom from a "buy" rating to a "strong-buy" rating in a research report on Monday, June 15th. Finally, Evercore reissued an "outperform" rating and issued a $582.00 target price on shares of Broadcom in a report on Tuesday, May 19th. 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. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $490.13.

Broadcom Stock Performance

Shares of AVGO opened at $411.35 on Friday. 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 firm has a 50 day simple moving average of $411.42 and a 200-day simple moving average of $363.50. Broadcom Inc. has a 1-year low of $244.17 and a 1-year high of $495.00. The stock has a market cap of $1.96 trillion, a price-to-earnings ratio of 68.56, a price-to-earnings-growth ratio of 0.72 and a beta of 1.41.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.40 by $0.04. The firm had revenue of $22.19 billion for 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 was up 47.9% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.58 EPS. Equities analysts forecast that Broadcom Inc. will post 10.24 EPS for the current fiscal year.

Broadcom Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Monday, June 22nd will be given a $0.65 dividend. This represents a $2.60 annualized dividend and a dividend yield of 0.6%. The ex-dividend date is Monday, June 22nd. Broadcom's dividend payout ratio is currently 43.33%.

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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