Sigma Planning Corp Increases Position in Broadcom Inc. $AVGO

Key Points

• Sigma Planning Corp increased its Broadcom stake by 1.9% in Q1, adding 1,455 shares to bring its total to 77,373 shares worth about $23.95 million.
• Broadcom reported stronger-than-expected quarterly results, with EPS of $2.44 and revenue of $22.19 billion, while revenue rose 47.9% year over year.
• Despite bullish analyst targets and AI-related optimism, Broadcom is facing valuation concerns, a semiconductor sector selloff, and possible EU antitrust scrutiny tied to VMware licensing changes.

Sigma Planning Corp boosted its position in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 1.9% during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 77,373 shares of the semiconductor manufacturer's stock after acquiring an additional 1,455 shares during the quarter. Broadcom accounts for approximately 0.7% of Sigma Planning Corp's portfolio, making the stock its 16th largest holding. Sigma Planning Corp's holdings in Broadcom were worth $23,948,000 at the end of the most recent reporting period.

A number of other large investors have also added to or reduced their stakes in AVGO. Sovran Advisors LLC boosted its stake in shares of Broadcom by 121.3% in the 4th quarter. Sovran Advisors LLC now owns 30,631 shares of the semiconductor manufacturer's stock valued at $10,507,000 after purchasing an additional 16,789 shares in the last quarter. Thurston Springer Miller Herd & Titak Inc. raised its position in Broadcom by 406.1% in the 4th quarter. Thurston Springer Miller Herd & Titak Inc. now owns 11,994 shares of the semiconductor manufacturer's stock worth $4,151,000 after purchasing an additional 9,624 shares during the period. Aspiriant LLC raised its position in Broadcom by 18.5% in the 4th quarter. Aspiriant LLC now owns 12,016 shares of the semiconductor manufacturer's stock worth $4,158,000 after purchasing an additional 1,872 shares during the period. World Investment Advisors lifted its stake in Broadcom by 16.1% in the fourth quarter. World Investment Advisors now owns 177,710 shares of the semiconductor manufacturer's stock worth $61,505,000 after purchasing an additional 24,703 shares during the last quarter. Finally, Western Financial Corp CA lifted its stake in Broadcom by 90.5% in the fourth quarter. Western Financial Corp CA now owns 6,481 shares of the semiconductor manufacturer's stock worth $2,243,000 after purchasing an additional 3,079 shares during the last quarter. Hedge funds and other institutional investors own 76.43% of the company's stock.

Insiders Place Their Bets

In other Broadcom news, Director Harry L. You purchased 1,000 shares of the company's stock in a transaction that occurred on Thursday, June 11th. The stock was bought at an average price of $373.57 per share, with a total value of $373,570.00. Following the completion of the purchase, the director directly owned 38,466 shares of the company's stock, valued at $14,369,743.62. The trade was a 2.67% increase in their position. The purchase was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Gayla J. Delly sold 1,890 shares of Broadcom stock in a transaction on Wednesday, July 8th. The shares were sold at an average price of $385.38, for a total transaction of $728,368.20. Following the completion of the sale, the director owned 31,326 shares in the company, valued at approximately $12,072,413.88. This trade represents a 5.69% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 61,644 shares of company stock valued at $24,016,214 over the last three months. 1.90% of the stock is currently owned by corporate insiders.

Broadcom Stock Performance

Shares of NASDAQ:AVGO opened at $370.83 on Friday. The company has a current ratio of 2.24, a quick ratio of 2.01 and a debt-to-equity ratio of 0.71. The company has a 50-day moving average price of $401.29 and a 200-day moving average price of $365.31. The company has a market cap of $1.76 trillion, a price-to-earnings ratio of 61.81, a price-to-earnings-growth ratio of 0.66 and a beta of 1.45. Broadcom Inc. has a 12 month low of $273.00 and a 12 month high of $495.00.

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, topping the consensus estimate of $2.40 by $0.04. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.The company had revenue of $22.19 billion for the quarter, compared to analysts' expectations of $22.13 billion. During the same period last year, the firm earned $1.58 earnings per share. Broadcom's quarterly revenue was up 47.9% on a year-over-year basis. As a group, equities analysts anticipate that Broadcom Inc. will post 10.24 EPS for the current year.

Broadcom Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Monday, June 22nd were given a $0.65 dividend. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date was Monday, June 22nd. Broadcom's dividend payout ratio (DPR) is currently 43.33%.

Key Headlines Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Standard Chartered chose Broadcom to support a long-term modernization of its global banking infrastructure, underscoring Broadcom’s role in secure private-cloud and enterprise networking solutions. Standard Chartered Selects Broadcom to Deliver Secure, Always-On Banking Services at Global Scale
• Positive Sentiment: Wall Street commentary continues to describe Broadcom as a core AI beneficiary, and some analysts have raised price targets even after the stock pullback. As Shares Fall, Analyst Are Boosting Their Broadcom Price Targets
• Neutral Sentiment: Broadcom remains a major talking point in AI-focused market coverage, with some investors viewing it as an indicator for the broader market and semiconductor cycle. Jim Cramer Says Broadcom Will Tell You When the Market Is About to Turn
• Negative Sentiment: Broadcom is facing renewed skepticism around valuation, with one report asking whether the AI story has made the stock too expensive. Has Broadcom Become Too Expensive for Its AI Story?
• Negative Sentiment: The stock is also being hit by a broader selloff in semiconductor names as investors rotate away from AI-capex winners and worry about a slowdown in chip spending. Marvell Drops 8% as AI Capex Slowdown Fears Weigh on Chips; Broadcom, AMD, and Intel Slide
• Negative Sentiment: Broadcom is also dealing with regulatory uncertainty after reports said it faces an EU antitrust review tied to VMware licensing changes. Broadcom (AVGO) Faces EU Antitrust Review Over VMware Licensing Changes

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on AVGO shares. DA Davidson raised their price objective on Broadcom from $375.00 to $400.00 and gave the company a "neutral" rating in a research note on Thursday, June 4th. UBS Group set a $485.00 target price on Broadcom and gave the company a "buy" rating in a report on Thursday, June 4th. Benchmark raised their price target on Broadcom from $485.00 to $545.00 and gave the stock a "buy" rating in a research report on Thursday, June 4th. KeyCorp reaffirmed an "overweight" rating and issued a $575.00 price target (up from $500.00) on shares of Broadcom in a research note on Thursday, June 4th. Finally, Oppenheimer reiterated an "outperform" rating and issued a $535.00 price objective (up from $450.00) on shares of Broadcom in a research report on Thursday, June 4th. One research analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat.com, Broadcom presently has an average rating of "Moderate Buy" and an average target price of $493.24.

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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