Sun Financial Inc Makes New Investment in Broadcom Inc. $AVGO

Key Points

• Sun Financial Inc opened a new position in Broadcom during the fourth quarter, buying 3,458 shares valued at about $1.2 million.
• Broadcom continues to draw significant institutional interest, with 76.43% of the company’s stock held by institutional investors, while several other funds also recently increased their stakes.
• The stock has mixed sentiment from analysts and news flow: most analysts still rate it a Moderate Buy, but recent reports say Broadcom’s planned $18 billion OpenAI custom chip deal hit a financing snag, raising concerns about a key AI growth driver.

Sun Financial Inc acquired a new position in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) during the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm acquired 3,458 shares of the semiconductor manufacturer's stock, valued at approximately $1,197,000.

Several other large investors have also recently added to or reduced their stakes in AVGO. Brighton Jones LLC grew its holdings in shares of Broadcom by 21.8% during the 4th quarter. Brighton Jones LLC now owns 29,683 shares of the semiconductor manufacturer's stock worth $6,882,000 after purchasing an additional 5,322 shares in the last quarter. Revolve Wealth Partners LLC boosted its stake in Broadcom by 10.4% in the fourth quarter. Revolve Wealth Partners LLC now owns 7,997 shares of the semiconductor manufacturer's stock valued at $1,854,000 after buying an additional 756 shares in the last quarter. United Bank boosted its stake in Broadcom by 76.5% in the first quarter. United Bank now owns 2,339 shares of the semiconductor manufacturer's stock valued at $392,000 after buying an additional 1,014 shares in the last quarter. Sivia Capital Partners LLC boosted its stake in Broadcom by 10.1% in the second quarter. Sivia Capital Partners LLC now owns 12,693 shares of the semiconductor manufacturer's stock valued at $3,499,000 after buying an additional 1,160 shares in the last quarter. Finally, Capital & Planning LLC boosted its stake in Broadcom by 10.5% in the second quarter. Capital & Planning LLC now owns 3,983 shares of the semiconductor manufacturer's stock valued at $1,098,000 after buying an additional 378 shares in the last quarter. Institutional investors own 76.43% of the company's stock.

Analyst Ratings Changes

AVGO has been the topic of several research analyst reports. JPMorgan Chase & Co. raised their price objective on Broadcom from $475.00 to $500.00 and gave the company an "overweight" rating in a research note on Thursday, March 5th. Citigroup raised their price objective on Broadcom from $458.00 to $475.00 and gave the company a "buy" rating in a research note on Thursday, March 5th. Seaport Research Partners reaffirmed a "neutral" rating on shares of Broadcom in a research note on Wednesday, April 8th. Rosenblatt Securities reaffirmed a "buy" rating and issued a $500.00 price objective on shares of Broadcom in a research note on Tuesday, April 7th. Finally, Weiss Ratings lowered Broadcom from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday, April 24th. Two research 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 stock presently has a consensus rating of "Moderate Buy" and an average target price of $435.30.

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

Broadcom Price Performance

Shares of AVGO opened at $430.00 on Monday. Broadcom Inc. has a 1 year low of $206.52 and a 1 year high of $437.68. The company has a debt-to-equity ratio of 0.80, a current ratio of 1.90 and a quick ratio of 1.73. The company has a market capitalization of $2.04 trillion, a price-to-earnings ratio of 83.98, a price-to-earnings-growth ratio of 0.89 and a beta of 1.43. The business has a 50-day moving average of $352.89 and a 200-day moving average of $351.28.

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

Broadcom Dividend Announcement

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

Insiders Place Their Bets

In other news, CFO Kirsten M. Spears sold 36,292 shares of Broadcom stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $321.60, for a total value of $11,671,507.20. Following the completion of the transaction, the chief financial officer directly owned 327,760 shares of the company's stock, valued at approximately $105,407,616. This trade represents a 9.97% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider S. Ram Velaga sold 38,841 shares of Broadcom stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $321.60, for a total value 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 approximately $30,920,875.20. This trade represents a 28.77% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 324,282 shares of company stock valued at $106,425,249. 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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