Sumitomo Life Insurance Co. Has $40.79 Million Stock Holdings in Broadcom Inc. $AVGO

Key Points

• Sumitomo Life Insurance reduced its Broadcom stake by 9.7% in the fourth quarter, selling 12,668 shares and leaving it with 117,849 shares worth about $40.8 million.
• Despite some recent selling by investors and insiders, Broadcom remains heavily owned by institutions, with hedge funds and other large investors holding about 76.4% of the stock.
• Broadcom’s latest quarter was strong, with revenue up 47.9% to $22.19 billion and EPS of $2.44 beating estimates, while analysts still rate the stock a Moderate Buy with an average target price near $490.

Sumitomo Life Insurance Co. cut its holdings in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 9.7% in the 4th quarter, according to its most recent 13F filing with the SEC. The firm owned 117,849 shares of the semiconductor manufacturer's stock after selling 12,668 shares during the quarter. Broadcom comprises 1.1% of Sumitomo Life Insurance Co.'s holdings, making the stock its 15th biggest position. Sumitomo Life Insurance Co.'s holdings in Broadcom were worth $40,788,000 as of its most recent SEC filing.

A number of other large investors have also recently bought and sold shares of the company. Vanguard Group Inc. boosted its position in Broadcom by 0.8% during 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 during the last quarter. Geode Capital Management LLC raised its stake in Broadcom by 1.4% in the 4th quarter. Geode Capital Management LLC now owns 111,277,280 shares of the semiconductor manufacturer's stock valued at $38,396,634,000 after acquiring an additional 1,548,699 shares during the period. Norges Bank bought a new stake in Broadcom in the 4th quarter valued at $24,252,196,000. Invesco Ltd. raised its stake in Broadcom by 1.8% in the 3rd quarter. Invesco Ltd. now owns 39,149,651 shares of the semiconductor manufacturer's stock valued at $12,915,861,000 after acquiring an additional 700,021 shares during the period. Finally, Legal & General Group Plc raised its stake in Broadcom by 2.3% in the 3rd quarter. Legal & General Group Plc now owns 33,450,786 shares of the semiconductor manufacturer's stock valued at $11,035,749,000 after acquiring an additional 748,709 shares during the period. Institutional investors and hedge funds own 76.43% of the company's stock.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s quarterly results were very strong, with revenue up 48% to a record $22.2 billion, semiconductor revenue up 79%, AI semiconductor revenue up 143% to $10.8 billion, and more than $30 billion in AI bookings, suggesting demand remains robust. Article Title
• Positive Sentiment: Several analysts and commentators argue the recent drop could be a buying opportunity, saying Broadcom remains a core infrastructure winner in AI and that Wall Street’s long-term outlook is still constructive. Article Title
• Positive Sentiment: Fresh coverage highlighted Broadcom as one of the stocks with catalysts heading into the second half of the year, and some analysts have raised earnings forecasts and price targets despite the selloff. Article Title
• Neutral Sentiment: Jim Cramer said Broadcom’s earnings were “not good” and suggested tech stocks are harder to trust as leadership names, reflecting a more cautious market mood around the stock. Article Title
• Neutral Sentiment: Broadcom also announced cash tender offers for certain outstanding debt securities, a routine balance-sheet move that is unlikely to move the stock by itself. Article Title
• Negative Sentiment: Market commentary says the stock is being punished because investors are nitpicking Broadcom’s AI outlook and pricing the shares as if growth must keep accelerating without any hiccups. Article Title
• Negative Sentiment: One note warned that Broadcom told investors to expect gross profit margins to continue falling, reinforcing concerns that profitability may soften even as revenue grows. Article Title

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently weighed in on AVGO shares. Weiss Ratings raised Broadcom from a "buy (b-)" rating to a "buy (b)" rating in a report on Tuesday. Susquehanna reissued a "positive" rating and set a $490.00 price target (up from $450.00) on shares of Broadcom in a research note on Thursday, May 28th. Erste Group Bank raised Broadcom from a "hold" rating to a "buy" rating in a research note on Friday, June 5th. Zacks Research lowered Broadcom from a "strong-buy" rating to a "hold" rating in a research note on Thursday, May 21st. Finally, Benchmark lifted their price objective on Broadcom from $485.00 to $545.00 and gave the stock a "buy" rating in a research note on Thursday, June 4th. One analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, Broadcom currently has a consensus rating of "Moderate Buy" and an average target price of $490.13.

Broadcom Trading Down 0.9%

NASDAQ AVGO opened at $382.07 on Friday. The company has a market cap of $1.82 trillion, a price-to-earnings ratio of 63.68, a P/E/G ratio of 0.68 and a beta of 1.41. Broadcom Inc. has a 52 week low of $244.17 and a 52 week high of $495.00. The business has a 50 day moving average price of $404.26 and a 200-day moving average price of $363.33. The company has a quick ratio of 2.01, a current ratio of 2.24 and a debt-to-equity ratio of 0.71.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its quarterly 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 business had revenue of $22.19 billion during the quarter, compared to the consensus estimate of $22.13 billion. During the same quarter in the prior year, the company posted $1.58 earnings per share. Broadcom's revenue was up 47.9% compared to the same quarter last year. As a group, equities analysts expect that Broadcom Inc. will post 10.24 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The firm also recently disclosed 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 is 43.33%.

Insiders Place Their Bets

In other news, 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 transaction, the insider owned 96,147 shares of the company's stock, valued at $30,920,875.20. This represents a 28.77% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, 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 transaction, the insider directly owned 74,626 shares in the company, valued at $24,000,467.86. This represents a 34.39% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 324,282 shares of company stock worth $106,425,249 over the last 90 days. Company insiders own 1.90% of the company's stock.

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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