Rice Partnership LLC Increases Stock Position in Broadcom Inc. $AVGO

Key Points

• Rice Partnership LLC boosted its Broadcom stake by 46.6% in the fourth quarter, buying 8,785 more shares and bringing its holdings to 27,651 shares worth about $9.57 million.
• Broadcom beat quarterly expectations, reporting EPS of $2.44 versus $2.40 expected and revenue of $22.19 billion, up 47.9% year over year.
• The company also declared a quarterly dividend of $0.65 per share, while analysts remain broadly bullish with an average rating of “Moderate Buy” and a consensus price target of $490.13.

Rice Partnership LLC increased its position in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 46.6% in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 27,651 shares of the semiconductor manufacturer's stock after purchasing an additional 8,785 shares during the quarter. Broadcom accounts for 1.3% of Rice Partnership LLC's portfolio, making the stock its 21st largest position. Rice Partnership LLC's holdings in Broadcom were worth $9,570,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also made changes to their positions in the company. Miller Global Investments LLC purchased a new position in shares of Broadcom in the fourth quarter valued at $31,000. Nvest Wealth Strategies Inc. acquired a new stake in shares of Broadcom during the fourth quarter worth approximately $33,000. Family CFO Inc acquired a new stake in shares of Broadcom during the fourth quarter worth approximately $35,000. PayPay Securities Corp grew its position in shares of Broadcom by 88.9% during the fourth quarter. PayPay Securities Corp now owns 119 shares of the semiconductor manufacturer's stock worth $41,000 after buying an additional 56 shares in the last quarter. Finally, Camelot Portfolios LLC acquired a new stake in shares of Broadcom during the fourth quarter worth approximately $45,000. 76.43% of the stock is currently owned by hedge funds and other institutional investors.

Broadcom Stock Performance

Shares of AVGO opened at $385.73 on Friday. The business's fifty day moving average price is $396.22 and its 200 day moving average price is $361.90. Broadcom Inc. has a 12-month low of $241.11 and a 12-month high of $495.00. The stock has a market capitalization of $1.83 trillion, a PE ratio of 64.29, a price-to-earnings-growth ratio of 0.86 and a beta of 1.41. The company has a debt-to-equity ratio of 0.71, a current ratio of 2.24 and a quick ratio of 1.73.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its quarterly earnings data on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.40 by $0.04. The firm had revenue of $22.19 billion for the quarter, compared to analysts' expectations of $22.13 billion. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.The firm's revenue for the quarter was up 47.9% on a year-over-year basis. During the same period last year, the business posted $1.58 earnings per share. Equities research analysts forecast that Broadcom Inc. will post 9.97 EPS for the current year.

Broadcom Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Monday, June 22nd will be paid a $0.65 dividend. This represents a $2.60 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date is Monday, June 22nd. Broadcom's dividend payout ratio (DPR) is presently 43.33%.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on the stock. Bank of America raised their price target on shares of Broadcom from $450.00 to $530.00 and gave the stock a "buy" rating in a research report on Thursday. Truist Financial raised their price target on shares of Broadcom from $545.00 to $550.00 and gave the stock a "buy" rating in a research report on Thursday. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and set a $515.00 price target (up from $430.00) on shares of Broadcom in a research report on Thursday. UBS Group set a $485.00 price target on shares of Broadcom and gave the stock a "buy" rating in a research report on Thursday. Finally, Benchmark raised their price target on shares of Broadcom from $485.00 to $545.00 and gave the stock a "buy" rating in a research report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $490.13.

Insider Buying and Selling

In other Broadcom news, Director Gayla J. Delly sold 1,000 shares of the firm's stock in a transaction on Thursday, April 9th. The stock was sold at an average price of $358.31, for a total value of $358,310.00. Following the sale, the director directly owned 32,352 shares in the company, valued at approximately $11,592,045.12. This trade represents a 3.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Mark David Brazeal sold 50,488 shares of the firm's stock in a transaction on 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 in the company, 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 in the last three months. 1.90% of the stock is owned by corporate insiders.

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

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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