Sandro Wealth Management LLC Invests $3.03 Million in Broadcom Inc. $AVGO

Key Points

• Sandro Wealth Management initiated a new position in Broadcom in the fourth quarter, buying 8,753 shares worth about $3.03 million. The stake now represents roughly 2.5% of the firm’s portfolio and is its 10th-largest holding.
• Broadcom’s stock is facing pressure from reports that OpenAI’s planned $18 billion custom chip deal with the company hit a financing snag. That has raised concerns about a key AI revenue opportunity and Broadcom’s custom chip ambitions.
• Despite the headline risk, Broadcom reported solid recent results, with Q4 earnings and revenue both beating estimates and revenue rising 29.5% year over year. Analysts still view the stock favorably overall, with a consensus rating of Moderate Buy and a price target around $435.30.

Sandro Wealth Management LLC acquired a new position in Broadcom Inc. (NASDAQ:AVGO - Free Report) during the 4th quarter, according to the company in its most recent disclosure with the SEC. The fund acquired 8,753 shares of the semiconductor manufacturer's stock, valued at approximately $3,029,000. Broadcom comprises approximately 2.5% of Sandro Wealth Management LLC's investment portfolio, making the stock its 10th largest holding.

Other hedge funds also recently made changes to their positions in the company. JCIC Asset Management Inc. acquired a new position in shares of Broadcom in the 3rd quarter worth approximately $31,000. Miller Global Investments LLC acquired a new stake in shares of Broadcom during the fourth quarter valued at approximately $31,000. Nvest Wealth Strategies Inc. purchased a new stake in shares of Broadcom in the 4th quarter valued at approximately $33,000. Manning & Napier Advisors LLC purchased a new stake in shares of Broadcom in the 3rd quarter valued at approximately $34,000. Finally, Family CFO Inc acquired a new position in Broadcom in the 4th quarter worth approximately $35,000. Institutional investors and hedge funds own 76.43% of the company's stock.

Key Broadcom News

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

Broadcom Price Performance

NASDAQ 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 stock has a market capitalization of $2.04 trillion, a PE ratio of 83.98, a price-to-earnings-growth ratio of 0.89 and a beta of 1.43. The company has a 50 day moving average price of $352.89 and a two-hundred day moving average price of $351.28. Broadcom Inc. has a 12-month low of $206.52 and a 12-month high of $437.68.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.03 by $0.02. The firm 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 company's revenue was up 29.5% compared to the same quarter last year. During the same period in the previous year, the company earned $1.60 earnings per share. As a group, equities analysts predict that Broadcom Inc. will post 9.95 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

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

Insiders Place Their Bets

In other news, insider Charlie B. Kawwas sold 10,000 shares of the business's stock in a transaction on Wednesday, April 8th. The shares were sold at an average price of $345.23, for a total value of $3,452,300.00. Following the completion of the sale, the insider directly owned 787,184 shares in the company, valued at approximately $271,759,532.32. The trade was a 1.25% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Gayla J. Delly sold 1,000 shares of the business's stock in a transaction on Thursday, April 9th. The stock was sold at an average price of $358.31, for a total transaction of $358,310.00. Following the completion of the sale, the director owned 32,352 shares of the company's stock, valued at $11,592,045.12. The trade was a 3.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 324,282 shares of company stock valued at $106,425,249 in the last three months. Company insiders own 1.90% of the company's stock.

Analyst Upgrades and Downgrades

AVGO has been the subject of a number of recent analyst reports. Erste Group Bank lowered shares of Broadcom from a "buy" rating to a "hold" rating in a research note on Thursday, April 2nd. Wells Fargo & Company raised shares of Broadcom from an "equal weight" rating to an "overweight" rating and raised their price objective for the stock from $410.00 to $430.00 in a research note on Thursday, January 15th. Wolfe Research raised shares of Broadcom from a "peer perform" rating to an "outperform" rating and set a $400.00 price objective for the company in a research note on Friday, January 30th. Weiss Ratings lowered shares of Broadcom from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday, April 24th. Finally, Citigroup raised their price objective on shares of Broadcom from $458.00 to $475.00 and gave the stock a "buy" rating in a research note on Thursday, March 5th. Two analysts have rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $435.30.

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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