Montag A & Associates Inc. Trims Stake in Broadcom Inc. $AVGO

Montag A & Associates Inc. lowered its position in Broadcom Inc. (NASDAQ:AVGO) by 6.7% during the 4th quarter, HoldingsChannel reports. The fund owned 70,710 shares of the semiconductor manufacturer’s stock after selling 5,091 shares during the period. Broadcom comprises about 1.1% of Montag A & Associates Inc.’s investment portfolio, making the stock its 19th largest holding. Montag A & Associates Inc.’s holdings in Broadcom were worth $24,473,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also made changes to their positions in the company. Core Alternative Capital raised its stake in shares of Broadcom by 57.0% in the fourth quarter. Core Alternative Capital now owns 5,542 shares of the semiconductor manufacturer’s stock valued at $1,918,000 after acquiring an additional 2,012 shares during the period. AlphaStar Capital Management LLC raised its stake in shares of Broadcom by 5.7% in the fourth quarter. AlphaStar Capital Management LLC now owns 36,734 shares of the semiconductor manufacturer’s stock valued at $12,714,000 after acquiring an additional 1,984 shares during the period. Greenfield Savings Bank raised its stake in shares of Broadcom by 1.2% in the fourth quarter. Greenfield Savings Bank now owns 4,338 shares of the semiconductor manufacturer’s stock valued at $1,501,000 after acquiring an additional 50 shares during the period. Legacy Edge Advisors LLC purchased a new stake in shares of Broadcom in the fourth quarter valued at $3,056,000. Finally, Robocap Asset Management Ltd raised its stake in shares of Broadcom by 359.1% in the fourth quarter. Robocap Asset Management Ltd now owns 12,856 shares of the semiconductor manufacturer’s stock valued at $4,449,000 after acquiring an additional 10,056 shares during the period. Hedge funds and other institutional investors own 76.43% of the company’s stock.

Insider Buying and Selling at Broadcom

In other Broadcom news, insider Charlie B. Kawwas sold 39,116 shares of the stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $321.61, for a total transaction 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Kirsten M. Spears sold 36,292 shares of the stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $321.60, for a total transaction of $11,671,507.20. Following the transaction, the chief financial officer owned 327,760 shares in the company, valued at approximately $105,407,616. The trade was a 9.97% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 324,282 shares of company stock valued at $106,425,249 in the last 90 days. Insiders own 1.90% of the company’s stock.

Analyst Ratings Changes

Several brokerages have recently weighed in on AVGO. Morgan Stanley increased their target price on shares of Broadcom from $462.00 to $470.00 and gave the company an “overweight” rating in a research note on Friday, March 6th. JPMorgan Chase & Co. raised their price target on shares of Broadcom from $475.00 to $500.00 and gave the stock an “overweight” rating in a research note on Thursday, March 5th. Mizuho reaffirmed an “outperform” rating and issued a $480.00 price target on shares of Broadcom in a research note on Thursday, April 16th. Bank of America reduced their price target on shares of Broadcom from $500.00 to $450.00 and set a “buy” rating on the stock in a research note on Thursday, March 5th. Finally, Rosenblatt Securities reaffirmed a “buy” rating and issued a $500.00 price target on shares of Broadcom in a research note on Tuesday, April 7th. Two research analysts have rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and four have given a Hold rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $435.30.

Broadcom Price Performance

Shares of Broadcom stock opened at $430.00 on Monday. 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 Inc. has a 1 year low of $206.52 and a 1 year high of $437.68. The firm’s 50-day moving average is $352.89 and its two-hundred day moving average is $351.28. The stock has a market cap of $2.04 trillion, a price-to-earnings ratio of 83.98, a PEG ratio of 0.89 and a beta of 1.43.

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

Broadcom Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Monday, March 23rd were issued a dividend of $0.65 per share. This represents a $2.60 annualized dividend and a yield of 0.6%. The ex-dividend date was Monday, March 23rd. Broadcom’s dividend payout ratio is presently 50.78%.

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 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.