RWQ Financial Management Services Inc. Grows Position in Broadcom Inc. $AVGO

Key Points

• RWQ Financial Management Services increased its Broadcom stake by 15.3% in the fourth quarter, bringing its holdings to 45,170 shares valued at about $15.6 million. Broadcom now makes up 7.2% of the firm’s portfolio and is its fifth-largest holding.
• Broadcom reported better-than-expected quarterly results, with EPS of $2.05 versus the $2.03 consensus and revenue of $19.31 billion versus $19.10 billion expected. Revenue rose 29.5% year over year, and analysts currently expect full-year EPS of 9.95.
• Analyst sentiment remains broadly positive, with an average Moderate Buy rating and a $435.30 price target, though some firms have trimmed or adjusted targets recently. The stock also carries a quarterly dividend of $0.65 per share, or $2.60 annualized, for a 0.6% yield.

RWQ Financial Management Services Inc. grew its stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 15.3% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 45,170 shares of the semiconductor manufacturer's stock after acquiring an additional 5,997 shares during the quarter. Broadcom accounts for 7.2% of RWQ Financial Management Services Inc.'s portfolio, making the stock its 5th biggest holding. RWQ Financial Management Services Inc.'s holdings in Broadcom were worth $15,633,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds have also added to or reduced their stakes in AVGO. Providence First Trust Co raised its stake in shares of Broadcom by 1,099.3% in the third quarter. Providence First Trust Co now owns 8,923 shares of the semiconductor manufacturer's stock worth $2,944,000 after purchasing an additional 8,179 shares during the last quarter. Whittier Trust Co. of Nevada Inc. raised its stake in shares of Broadcom by 3.4% in the third quarter. Whittier Trust Co. of Nevada Inc. now owns 323,587 shares of the semiconductor manufacturer's stock worth $109,492,000 after purchasing an additional 10,786 shares during the last quarter. Lmcg Investments LLC raised its stake in shares of Broadcom by 9.4% in the third quarter. Lmcg Investments LLC now owns 38,961 shares of the semiconductor manufacturer's stock worth $12,854,000 after purchasing an additional 3,357 shares during the last quarter. Wright Investors Service Inc. raised its stake in shares of Broadcom by 5.4% in the third quarter. Wright Investors Service Inc. now owns 42,159 shares of the semiconductor manufacturer's stock worth $13,909,000 after purchasing an additional 2,178 shares during the last quarter. Finally, Brown Brothers Harriman & Co. raised its stake in shares of Broadcom by 10.7% in the third quarter. Brown Brothers Harriman & Co. now owns 77,411 shares of the semiconductor manufacturer's stock worth $25,539,000 after purchasing an additional 7,499 shares during the last quarter. 76.43% of the stock is owned by institutional investors.

Analysts Set New Price Targets

Several research analysts have recently weighed in on AVGO shares. Royal Bank Of Canada decreased their price target on Broadcom from $370.00 to $340.00 and set a "sector perform" rating for the company in a research note on Monday, March 2nd. JPMorgan Chase & Co. upped their price objective on Broadcom from $475.00 to $500.00 and gave the company an "overweight" rating in a research report on Thursday, March 5th. Mizuho reiterated an "outperform" rating and set a $480.00 price objective on shares of Broadcom in a research report on Thursday, April 16th. DA Davidson upgraded Broadcom to a "hold" rating in a research report on Friday, February 13th. Finally, Seaport Research Partners reiterated a "neutral" rating on shares of Broadcom in a research report on Wednesday, April 8th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $435.30.

Broadcom Stock Performance

Shares of AVGO opened at $430.00 on Friday. The company has a quick ratio of 1.73, a current ratio of 1.90 and a debt-to-equity ratio of 0.80. The business has a 50-day simple moving average of $352.89 and a two-hundred day simple moving average of $351.28. The stock has a market cap of $2.04 trillion, a price-to-earnings ratio of 83.98, a PEG ratio of 0.89 and a beta of 1.43. Broadcom Inc. has a 52 week low of $206.52 and a 52 week high of $437.68.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its quarterly earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 EPS for the quarter, topping 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 return on equity of 38.61% and a net margin of 36.57%.The business's quarterly revenue was up 29.5% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.60 earnings per share. On average, analysts expect that Broadcom Inc. will post 9.95 EPS for the current year.

Broadcom Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Monday, March 23rd were given a $0.65 dividend. The ex-dividend date was Monday, March 23rd. This represents a $2.60 dividend on an annualized basis and a yield of 0.6%. Broadcom's dividend payout ratio is presently 50.78%.

Broadcom News Roundup

Here are the key news stories impacting Broadcom this week:

• Negative Sentiment: Broadcom shares are under pressure after reports said OpenAI’s planned $18 billion custom chip deal with the company hit a financing roadblock, creating uncertainty around a key AI revenue driver. Broadcom shares slump as OpenAI’s $18B custom chip deal hits financing snag
• Negative Sentiment: Another report framed the OpenAI issue as a major setback for Broadcom’s custom AI chip ambitions, adding concern that one of its flagship customer relationships may not be as immediately monetizable as investors hoped. Broadcom's OpenAI mega AI deal hits $18 billion wall
• Neutral Sentiment: Broadcom also announced VMware by Broadcom VCF 9.1, a product update aimed at accelerating production AI workloads in private clouds, which supports the company’s long-term enterprise AI strategy. Broadcom (AVGO) Launches VCF 9.1 to Accelerate Production AI in Private Clouds
• Neutral Sentiment: Several commentary pieces remained constructive on Broadcom’s position in the AI infrastructure stack, noting that recent hyperscaler results still support demand for chips and networking tied to AI buildouts. Big Tech earnings support Broadcom’s outlook
• Neutral Sentiment: Broadcom was also mentioned in a public-sector VMware partnership update, which could help broaden enterprise distribution but is not likely the main driver of the stock today. evoila U.S. and Carahsoft Partner to Deliver VMware by Broadcom Services to the Public Sector

Insider Activity

In related news, insider Charlie B. Kawwas sold 39,116 shares of the company's stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $321.61, for a total value of $12,580,096.76. Following the completion of the transaction, the insider owned 74,626 shares of the company's stock, valued at approximately $24,000,467.86. This represents a 34.39% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, insider S. Ram Velaga sold 38,841 shares of the company's stock in a transaction on 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 completion of the transaction, the insider directly owned 96,147 shares of the company's stock, valued at $30,920,875.20. This represents a 28.77% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 324,282 shares of company stock worth $106,425,249. 1.90% of the stock is currently owned by corporate insiders.

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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