VIRGINIA RETIREMENT SYSTEMS ET Al Acquires 236,600 Shares of Broadcom Inc. $AVGO

Key Points

• VIRGINIA RETIREMENT SYSTEMS ET Al increased its Broadcom stake by 32.4% in the fourth quarter, buying 236,600 more shares to bring its total to 966,310 shares valued at about $334.4 million.
• Broadcom posted strong quarterly results, with EPS of $2.05 and revenue of $19.31 billion, both slightly above analyst expectations, while revenue climbed 29.5% year over year.
• The company has continued to attract mostly bullish analyst coverage and new partnership momentum, including a five-year renewal with LSEG; however, insiders have recently sold shares and the stock has been trading lower than the broader market in the near term.

VIRGINIA RETIREMENT SYSTEMS ET Al grew its holdings in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 32.4% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 966,310 shares of the semiconductor manufacturer's stock after buying an additional 236,600 shares during the period. Broadcom accounts for about 2.0% of VIRGINIA RETIREMENT SYSTEMS ET Al's investment portfolio, making the stock its 7th biggest holding. VIRGINIA RETIREMENT SYSTEMS ET Al's holdings in Broadcom were worth $334,440,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds also recently modified their holdings of the business. JCIC Asset Management Inc. bought a new position in shares of Broadcom in the third quarter valued at approximately $31,000. Miller Global Investments LLC bought a new stake in Broadcom during the fourth quarter worth approximately $31,000. Nvest Wealth Strategies Inc. bought a new stake in Broadcom during the fourth quarter worth approximately $33,000. Manning & Napier Advisors LLC acquired a new stake in Broadcom in the third quarter worth approximately $34,000. Finally, Family CFO Inc bought a new position in Broadcom during the 4th quarter valued at $35,000. Institutional investors own 76.43% of the company's stock.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom renewed its long-standing technology partnership with LSEG in a new five-year agreement centered on VMware Cloud Foundation, which expands Broadcom’s role in a mission-critical financial market infrastructure environment and reinforces recurring software demand. Article: LSEG Renews Partnership with Broadcom to Enhance Technology Infrastructure and Client Experience
• Positive Sentiment: The agreement includes Broadcom professional services to help roll out VMware Cloud Foundation 9, suggesting additional implementation revenue and deeper customer stickiness over time. Article: LSEG Renews Partnership with Broadcom to Enhance Technology Infrastructure and Client Experience
• Neutral Sentiment: Recent commentary continues to highlight Broadcom’s strong AI-related revenue growth and multiple bullish analyst price targets, which may help keep investor sentiment constructive. Article: ALAB vs. AVGO: Which AI Infrastructure Stock Is the Better Buy Now?
• Negative Sentiment: Despite the positive partnership news, Broadcom has recently been trading lower than the broader market, reflecting some near-term caution after a strong run-up. Article: Broadcom Inc. (AVGO) Declines More Than Market: Some Information for Investors

Analysts Set New Price Targets

Several research analysts recently weighed in on AVGO shares. Royal Bank Of Canada decreased their target price on Broadcom from $370.00 to $340.00 and set a "sector perform" rating for the company in a research note on Monday, March 2nd. Weiss Ratings downgraded shares of Broadcom from a "buy (b-)" rating to a "hold (c+)" rating in a report on Friday, April 24th. Rosenblatt Securities restated a "buy" rating and set a $500.00 price objective on shares of Broadcom in a research report on Tuesday, April 7th. Wells Fargo & Company reiterated an "overweight" rating and issued a $545.00 target price (up from $430.00) on shares of Broadcom in a report on Thursday. Finally, Morgan Stanley upped their price target on Broadcom from $462.00 to $470.00 and gave the company an "overweight" rating in a report on Friday, March 6th. Two analysts have rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, Broadcom has a consensus rating of "Moderate Buy" and a consensus price target of $442.13.

Broadcom Trading Down 1.1%

Shares of Broadcom stock opened at $420.71 on Tuesday. Broadcom Inc. has a 52-week low of $221.60 and a 52-week high of $442.36. The firm has a market capitalization of $1.99 trillion, a PE ratio of 82.17, a price-to-earnings-growth ratio of 0.88 and a beta of 1.43. The company's fifty day moving average price is $367.36 and its two-hundred day moving average price is $354.90. The company has a debt-to-equity ratio of 0.80, a current ratio of 1.90 and a quick ratio of 1.73.

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

Broadcom Announces Dividend

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

Insider Buying and Selling at Broadcom

In related news, insider Mark David Brazeal sold 50,488 shares of the business's stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $321.60, for a total value of $16,236,940.80. Following the completion of the transaction, the insider owned 278,141 shares in the company, valued at $89,450,145.60. The trade was a 15.36% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider S. Ram Velaga sold 8,000 shares of Broadcom 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 completion of the sale, the insider directly owned 57,932 shares of the company's stock, valued at $21,464,964.64. This trade represents a 12.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 324,282 shares of company stock valued at $106,425,249 over the last three months. Insiders own 1.90% of the company's stock.

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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