SVRN Asset Management LLC Buys Shares of 5,420 Broadcom Inc. $AVGO

Key Points

• SVRN Asset Management initiated a new position in Broadcom, buying 5,420 shares worth about $1.88 million in the fourth quarter. The stock now makes up 1.5% of the firm’s holdings and is its 11th largest position.
• Broadcom’s latest earnings were strong, with revenue up 47.9% year over year to $22.19 billion and EPS of $2.44, slightly above estimates. Management also highlighted surging AI demand, including $10.8 billion in AI semiconductor revenue and more than $30 billion in AI bookings.
• Despite the strong results, the stock has faced pressure as investors worry about valuation and margin trends; some commentary says Broadcom is being penalized for having to keep AI growth exceptionally strong. Analysts remain broadly positive, with several raising price targets and a consensus Moderate Buy rating.

SVRN Asset Management LLC bought a new stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) in the fourth quarter, according to the company in its most recent Form 13F filing with the SEC. The firm bought 5,420 shares of the semiconductor manufacturer's stock, valued at approximately $1,876,000. Broadcom accounts for 1.5% of SVRN Asset Management LLC's holdings, making the stock its 11th largest position.

Other institutional investors and hedge funds have also modified their holdings of the company. ROSS JOHNSON & Associates LLC lifted its stake in shares of Broadcom by 1,320.0% in the 4th quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer's stock valued at $25,000 after purchasing an additional 66 shares during the last quarter. SWAN Capital LLC lifted its stake in shares of Broadcom by 261.9% in the 4th quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer's stock valued at $26,000 after purchasing an additional 55 shares during the last quarter. Miller Global Investments LLC acquired a new stake in shares of Broadcom in the 4th quarter valued at $31,000. Nvest Wealth Strategies Inc. acquired a new stake in shares of Broadcom in the 4th quarter valued at $33,000. Finally, Family CFO Inc acquired a new stake in shares of Broadcom in the 4th quarter valued at $35,000. Institutional investors and hedge funds own 76.43% of the company's stock.

Broadcom News Roundup

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

Insider Activity

In related news, insider Charlie B. Kawwas sold 39,116 shares of Broadcom 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 owned 74,626 shares in the company, valued at $24,000,467.86. This trade represents a 34.39% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Mark David Brazeal sold 50,488 shares of the business's stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $321.60, for a total transaction of $16,236,940.80. Following the transaction, the insider owned 278,141 shares in the company, valued at approximately $89,450,145.60. The trade was a 15.36% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 324,282 shares of company stock worth $106,425,249. Insiders own 1.90% of the company's stock.

Broadcom Stock Performance

Shares of AVGO opened at $382.07 on Friday. The company has a market capitalization of $1.82 trillion, a PE ratio of 63.68, a price-to-earnings-growth ratio of 0.68 and a beta of 1.41. Broadcom Inc. has a one year low of $244.17 and a one year high of $495.00. The company has a debt-to-equity ratio of 0.71, a current ratio of 2.24 and a quick ratio of 2.01. The company's fifty day moving average price is $404.26 and its 200 day moving average price is $363.33.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, topping the consensus estimate of $2.40 by $0.04. The firm had revenue of $22.19 billion for the quarter, compared to the consensus estimate of $22.13 billion. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The business's quarterly revenue was up 47.9% on a year-over-year basis. During the same quarter last year, the firm posted $1.58 EPS. As a group, analysts expect that Broadcom Inc. will post 10.24 earnings per share for the current year.

Broadcom Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 22nd will be issued a $0.65 dividend. This represents a $2.60 annualized dividend and a yield of 0.7%. The ex-dividend date is Monday, June 22nd. Broadcom's dividend payout ratio (DPR) is 43.33%.

Analysts Set New Price Targets

AVGO has been the subject of several analyst reports. Citigroup reaffirmed a "buy" rating on shares of Broadcom in a research note on Thursday, June 4th. JPMorgan Chase & Co. lifted their price objective on shares of Broadcom from $500.00 to $580.00 and gave the company an "overweight" rating in a research note on Thursday, June 4th. Royal Bank Of Canada lifted their price objective on shares of Broadcom from $360.00 to $400.00 and gave the company a "sector perform" rating in a research note on Thursday, June 4th. Wells Fargo & Company reaffirmed an "overweight" rating and issued a $545.00 price objective (up from $430.00) on shares of Broadcom in a research note on Thursday, May 14th. Finally, UBS Group set a $485.00 price objective on shares of Broadcom and gave the company a "buy" rating in a research note on Thursday, June 4th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $490.13.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.