Strs Ohio Has $644.38 Million Stock Position in Broadcom Inc. $AVGO

Key Points

• Strs Ohio increased its Broadcom stake by 1.1% in the fourth quarter, bringing its holdings to 1.86 million shares valued at about $644.4 million. Broadcom is now Strs Ohio’s 6th-largest position and makes up 2.4% of its portfolio.
• Broadcom’s AI-related news is mixed: reports say OpenAI’s planned $18 billion custom chip deal hit a financing snag, raising questions about a key growth driver. At the same time, Broadcom launched VMware VCF 9.1 to support production AI workloads in private clouds.
• The stock remains well supported by Wall Street and strong fundamentals, with analysts holding a consensus rating of “Moderate Buy” and an average target price of $435.30. Broadcom also recently beat quarterly EPS and revenue estimates, while the stock traded near its 52-week high at $430.00.

Strs Ohio lifted its stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 1.1% in the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 1,861,821 shares of the semiconductor manufacturer's stock after acquiring an additional 19,851 shares during the period. Broadcom accounts for 2.4% of Strs Ohio's portfolio, making the stock its 6th largest position. Strs Ohio's holdings in Broadcom were worth $644,376,000 as of its most recent filing with the Securities and Exchange Commission.

Several other large investors have also recently made changes to their positions in AVGO. Arrowstreet Capital Limited Partnership raised its position in shares of Broadcom by 499.4% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 5,634,232 shares of the semiconductor manufacturer's stock worth $1,858,789,000 after acquiring an additional 4,694,313 shares in the last quarter. Vanguard Group Inc. raised its position in shares of Broadcom by 0.8% in the 4th quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer's stock worth $167,064,997,000 after acquiring an additional 3,919,715 shares in the last quarter. Nordea Investment Management AB increased its position in Broadcom by 47.5% during the 4th quarter. Nordea Investment Management AB now owns 9,814,757 shares of the semiconductor manufacturer's stock valued at $3,406,211,000 after buying an additional 3,160,586 shares in the last quarter. Danske Bank A S acquired a new position in Broadcom during the 3rd quarter valued at about $987,488,000. Finally, PFA Pension Forsikringsaktieselskab acquired a new position in Broadcom during the 4th quarter valued at about $924,858,000. 76.43% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on the company. Erste Group Bank lowered Broadcom from a "buy" rating to a "hold" rating in a research report on Thursday, April 2nd. Benchmark reaffirmed a "buy" rating and set a $485.00 target price on shares of Broadcom in a research report on Thursday, March 5th. Wells Fargo & Company raised Broadcom from an "equal weight" rating to an "overweight" rating and upped their target price for the company from $410.00 to $430.00 in a research report on Thursday, January 15th. Weiss Ratings lowered Broadcom from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, April 24th. Finally, DA Davidson raised Broadcom to a "hold" rating in a research report on Friday, February 13th. Two research 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.com, Broadcom currently has a consensus rating of "Moderate Buy" and an average target price of $435.30.

Key Headlines Impacting Broadcom

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 Stock Up 4.2%

Shares of AVGO stock opened at $430.00 on Friday. Broadcom Inc. has a fifty-two week low of $206.52 and a fifty-two week high of $437.68. The firm has a market capitalization of $2.04 trillion, a PE ratio of 83.98, a P/E/G ratio of 0.89 and a beta of 1.43. The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.73 and a current ratio of 1.90. The stock's 50-day simple moving average is $352.89 and its 200-day simple moving average is $351.28.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its quarterly earnings data on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.03 by $0.02. Broadcom had a return on equity of 38.61% and a net margin of 36.57%.The firm had revenue of $19.31 billion during the quarter, compared to analysts' expectations of $19.10 billion. During the same period last year, the business posted $1.60 earnings per share. The company's revenue for the quarter was up 29.5% compared to the same quarter last year. Equities analysts expect that Broadcom Inc. will post 9.95 earnings per share for the current year.

Broadcom Announces Dividend

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

Insider Transactions at Broadcom

In other news, insider S. Ram Velaga sold 8,000 shares of the stock in a transaction on Friday, April 10th. The shares were sold at an average price of $370.52, for a total value of $2,964,160.00. Following the sale, the insider owned 57,932 shares in the company, valued at $21,464,964.64. This represents a 12.13% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through 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 stock was 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 owned 787,184 shares in the company, valued at $271,759,532.32. The trade was a 1.25% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 324,282 shares of company stock valued at $106,425,249. 1.90% of the stock is owned by corporate insiders.

Broadcom 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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