Westpac Banking Corp Increases Stock Holdings in Broadcom Inc. $AVGO

Key Points

• Westpac Banking Corp boosted its Broadcom stake by 6.4% in the fourth quarter, ending with 120,024 shares valued at about $41.5 million. Broadcom now ranks as Westpac’s sixth-largest holding and makes up 2.6% of its portfolio.
• Broadcom reported strong quarterly results, with earnings of $2.44 per share beating estimates and revenue of $22.19 billion slightly above forecasts. Revenue jumped 47.9% year over year, and the company also said AI semiconductor demand remains strong.
• The company declared a quarterly dividend of $0.65 per share, payable June 30, and analysts remain broadly positive, with a consensus rating of Moderate Buy and an average price target of $490.13.

Westpac Banking Corp increased its holdings in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 6.4% during the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 120,024 shares of the semiconductor manufacturer's stock after purchasing an additional 7,207 shares during the quarter. Broadcom accounts for 2.6% of Westpac Banking Corp's portfolio, making the stock its 6th biggest holding. Westpac Banking Corp's holdings in Broadcom were worth $41,540,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently modified their holdings of the business. Brighton Jones LLC lifted its holdings in Broadcom by 21.8% in the fourth quarter. Brighton Jones LLC now owns 29,683 shares of the semiconductor manufacturer's stock valued at $6,882,000 after acquiring an additional 5,322 shares during the period. Revolve Wealth Partners LLC lifted its holdings 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 acquiring an additional 756 shares during the period. United Bank lifted its holdings 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 acquiring an additional 1,014 shares during the period. Sivia Capital Partners LLC lifted its holdings 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 acquiring an additional 1,160 shares during the period. Finally, Capital & Planning LLC lifted its holdings 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 acquiring an additional 378 shares during the period. 76.43% of the stock is owned by institutional investors.

Broadcom Stock Performance

Shares of AVGO opened at $385.73 on Friday. The company has a quick ratio of 1.73, a current ratio of 2.24 and a debt-to-equity ratio of 0.71. The business has a 50-day simple moving average of $396.22 and a two-hundred day simple moving average of $361.90. The stock has a market cap of $1.83 trillion, a price-to-earnings ratio of 64.29, a PEG ratio of 0.86 and a beta of 1.41. Broadcom Inc. has a 52 week low of $241.11 and a 52 week high of $495.00.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its quarterly earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, topping analysts' consensus estimates of $2.40 by $0.04. The business had revenue of $22.19 billion during the quarter, compared to analysts' expectations of $22.13 billion. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.The business's quarterly revenue was up 47.9% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.58 earnings per share. On average, analysts expect that Broadcom Inc. will post 9.97 EPS for the current year.

Broadcom Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Monday, June 22nd will be given a $0.65 dividend. The ex-dividend date is Monday, June 22nd. This represents a $2.60 dividend on an annualized basis and a yield of 0.7%. Broadcom's dividend payout ratio is presently 43.33%.

Insiders Place Their Bets

In other Broadcom news, 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. This represents a 1.25% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Gayla J. Delly sold 1,000 shares of the company's stock in a transaction dated Thursday, April 9th. The stock was sold at an average price of $358.31, for a total value of $358,310.00. Following the completion of the sale, the director owned 32,352 shares of the company's stock, valued at approximately $11,592,045.12. The trade was a 3.00% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 324,282 shares of company stock valued at $106,425,249. 1.90% of the stock is currently owned by corporate insiders.

Broadcom News Summary

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom posted record quarterly revenue, beat earnings estimates, and said AI semiconductor demand remains strong, supporting the long-term growth story. Broadcom Q2 Earnings Surpasses Estimates, Revenues Surge Y/Y
• Positive Sentiment: Several analysts remain bullish and raised price targets after the pullback, arguing the market is overreacting to expectations rather than fundamentals. Goldman Sachs urges investors to buy Broadcom dip with still AI revenue trajectory intact
• Positive Sentiment: Management still expects AI revenue to reach $56 billion in fiscal 2026 and more than $100 billion in fiscal 2027, keeping the longer-term AI thesis intact. AVGO Shares Drop 13% Post Q2 Results: Buy, Sell or Hold on the Dip?
• Neutral Sentiment: Broadcom also declared a quarterly dividend, which is supportive for income investors but not a major near-term stock driver.
• Negative Sentiment: The stock is under pressure because the AI outlook, while strong, was not upgraded enough to satisfy investors who had priced in an even bigger upside surprise. Broadcom's sales and AI chip forecast comes in below expectations, shares tumble
• Negative Sentiment: The disappointment has spilled over into the semiconductor sector, pressuring peers such as AMD, Intel, Micron, and Marvell as investors reassess AI trade valuations. Intel, AMD stocks slide again in aftermath of Broadcom's weak outlook

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on AVGO shares. Truist Financial increased their target price on Broadcom from $545.00 to $550.00 and gave the company a "buy" rating in a report on Thursday. Wells Fargo & Company reissued an "overweight" rating and issued a $545.00 target price (up from $430.00) on shares of Broadcom in a report on Thursday, May 14th. DA Davidson increased their target price on Broadcom from $375.00 to $400.00 and gave the company a "neutral" rating in a report on Thursday. KeyCorp reissued an "overweight" rating and issued a $575.00 target price (up from $500.00) on shares of Broadcom in a report on Thursday. Finally, Mizuho increased their target price on Broadcom from $480.00 to $530.00 and gave the company an "outperform" rating in a report on Thursday. One analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $490.13.

Broadcom Company 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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