Arax Advisory Partners Reduces Holdings in Broadcom Inc. $AVGO

Arax Advisory Partners decreased its position in Broadcom Inc. (NASDAQ:AVGO) by 43.0% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 42,079 shares of the semiconductor manufacturer’s stock after selling 31,791 shares during the period. Arax Advisory Partners’ holdings in Broadcom were worth $14,563,000 as of its most recent SEC filing.

A number of other hedge funds have also recently made changes to their positions in AVGO. Avid Wealth Partners LLC boosted its stake in shares of Broadcom by 30.1% during the fourth quarter. Avid Wealth Partners LLC now owns 2,375 shares of the semiconductor manufacturer’s stock worth $822,000 after buying an additional 549 shares during the period. Blue Jean Financial LLC purchased a new stake in Broadcom during the fourth quarter worth about $1,621,000. Brasada Capital Management LP lifted its holdings in shares of Broadcom by 267.6% in the fourth quarter. Brasada Capital Management LP now owns 13,132 shares of the semiconductor manufacturer’s stock valued at $4,565,000 after purchasing an additional 9,560 shares in the last quarter. Brown Advisory Inc. lifted its holdings in shares of Broadcom by 1,024.8% in the fourth quarter. Brown Advisory Inc. now owns 2,478,453 shares of the semiconductor manufacturer’s stock valued at $857,801,000 after purchasing an additional 2,258,103 shares in the last quarter. Finally, Baldwin Investment Management LLC lifted its holdings in shares of Broadcom by 1.7% in the fourth quarter. Baldwin Investment Management LLC now owns 73,420 shares of the semiconductor manufacturer’s stock valued at $25,411,000 after purchasing an additional 1,208 shares in the last quarter. Hedge funds and other institutional investors own 76.43% of the company’s stock.

Insider Activity

In other news, insider S. Ram Velaga sold 38,841 shares of the company’s stock in a transaction on Tuesday, March 17th. The shares were 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 in the company, valued at approximately $30,920,875.20. This represents a 28.77% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Charlie B. Kawwas sold 39,116 shares of the stock in a transaction on 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 owned 74,626 shares in the company, valued at $24,000,467.86. This trade represents a 34.39% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 324,282 shares of company stock valued at $106,425,249 over the last ninety days. 1.90% of the stock is owned by company insiders.

Broadcom Price Performance

Shares of AVGO stock 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 0.67 and a beta of 1.41. The firm has a fifty day simple moving average of $404.26 and a 200-day simple moving average of $363.33. The company has a current ratio of 2.24, a quick ratio of 2.01 and a debt-to-equity ratio of 0.71. Broadcom Inc. has a twelve month low of $244.17 and a twelve month high of $495.00.

Broadcom (NASDAQ:AVGO) last announced its earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share for the quarter, beating the consensus estimate of $2.40 by $0.04. The business had revenue of $22.19 billion during 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% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.58 earnings per share. Equities research analysts anticipate that Broadcom Inc. will post 10.24 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

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

Analyst Ratings Changes

AVGO has been the subject of several research analyst reports. Seaport Research Partners reaffirmed a “neutral” rating on shares of Broadcom in a research report on Wednesday, April 8th. Jefferies Financial Group set a $550.00 price target on shares of Broadcom and gave the stock a “buy” rating in a research report on Thursday, June 4th. Weiss Ratings raised shares of Broadcom from a “buy (b-)” rating to a “buy (b)” rating in a research report on Tuesday. UBS Group set a $485.00 price target on shares of Broadcom and gave the stock a “buy” rating in a research report on Thursday, June 4th. Finally, Mizuho upped their price target on shares of Broadcom from $480.00 to $530.00 and gave the stock an “outperform” rating in a research report on Thursday, June 4th. One 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 stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $490.13.

Key Broadcom News

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

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.