IFS Group LLC Purchases New Stake in Broadcom Inc. $AVGO

IFS Group LLC acquired a new position in Broadcom Inc. (NASDAQ:AVGO) in the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm acquired 1,571 shares of the semiconductor manufacturer’s stock, valued at approximately $486,000.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its stake in shares of Broadcom by 0.8% during the fourth quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer’s stock worth $167,064,997,000 after buying an additional 3,919,715 shares during the last quarter. State Street Corp boosted its stake in Broadcom by 2.7% in the fourth quarter. State Street Corp now owns 190,084,351 shares of the semiconductor manufacturer’s stock valued at $65,788,194,000 after acquiring an additional 5,040,801 shares during the last quarter. Geode Capital Management LLC boosted its stake in Broadcom by 1.4% in the fourth quarter. Geode Capital Management LLC now owns 111,277,280 shares of the semiconductor manufacturer’s stock valued at $38,396,634,000 after acquiring an additional 1,548,699 shares during the last quarter. Price T Rowe Associates Inc. MD grew its holdings in Broadcom by 3.0% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 85,546,083 shares of the semiconductor manufacturer’s stock worth $29,607,500,000 after acquiring an additional 2,491,644 shares during the period. Finally, Norges Bank acquired a new stake in Broadcom during the 4th quarter worth $24,252,196,000. 76.43% of the stock is owned by institutional investors.

Broadcom Price Performance

Shares of AVGO opened at $370.32 on Thursday. The company has a debt-to-equity ratio of 0.71, a quick ratio of 2.01 and a current ratio of 2.24. The stock has a 50 day simple moving average of $395.11 and a 200 day simple moving average of $367.66. Broadcom Inc. has a 52-week low of $281.61 and a 52-week high of $495.00. The firm has a market capitalization of $1.76 trillion, a PE ratio of 61.72, a P/E/G ratio of 0.73 and a beta of 1.45.

Broadcom (NASDAQ:AVGO) last posted its earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share (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%.Broadcom’s revenue for the quarter was up 47.9% compared to the same quarter last year. During the same period in the prior year, the business earned $1.58 EPS. Sell-side analysts predict that Broadcom Inc. will post 10.24 EPS for the current fiscal year.

Broadcom Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Monday, June 22nd were given a dividend of $0.65 per share. The ex-dividend date of this dividend was Monday, June 22nd. This represents a $2.60 annualized dividend and a dividend yield of 0.7%. Broadcom’s dividend payout ratio is currently 43.33%.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on AVGO shares. Royal Bank Of Canada increased their price target on Broadcom from $360.00 to $400.00 and gave the company a “sector perform” rating in a research note on Thursday, June 4th. Wall Street Zen cut Broadcom from a “strong-buy” rating to a “buy” rating in a research note on Saturday, July 18th. DA Davidson upped their price objective on Broadcom from $375.00 to $400.00 and gave the company a “neutral” rating in a report on Thursday, June 4th. KeyCorp reissued an “overweight” rating and issued a $575.00 target price (up from $500.00) on shares of Broadcom in a research note on Thursday, June 4th. Finally, Weiss Ratings upgraded Broadcom from a “buy (b-)” rating to a “buy (b)” rating in a report on Wednesday, July 15th. Twenty-eight analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. According to data from MarketBeat.com, Broadcom has an average rating of “Moderate Buy” and a consensus price target of $493.24.

Insider Activity at Broadcom

In related news, insider Mark David Brazeal sold 25,000 shares of the company’s stock in a transaction on Friday, July 10th. The shares were sold at an average price of $401.33, for a total value of $10,033,250.00. Following the completion of the transaction, the insider directly owned 194,989 shares of the company’s stock, valued at approximately $78,254,935.37. This represents a 11.36% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Harry L. You bought 1,000 shares of the stock in a transaction on Thursday, June 11th. The shares were purchased at an average price of $373.57 per share, with a total value of $373,570.00. Following the acquisition, the director owned 38,466 shares in the company, valued at approximately $14,369,743.62. This represents a 2.67% increase in their position. The SEC filing for this purchase provides additional information. In the last ninety days, insiders have sold 61,644 shares of company stock valued at $24,016,214. Insiders own 1.90% of the company’s stock.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom reportedly signed a five-year, $200 billion agreement with Samsung covering memory chips, including high-bandwidth memory (HBM), and potentially advanced packaging. The deal could help solve a key constraint for Broadcom’s AI accelerators by securing critical memory supply and supporting long-term growth. Broadcom Just Signed a $200 Billion AI Agreement
• Positive Sentiment: Analysts and investors remain optimistic that Broadcom’s custom AI-chip business and relationships with hyperscale cloud providers can continue benefiting from infrastructure spending. Some valuation analysis indicates AVGO may be below estimated fair value based on discounted cash flow and earnings multiples despite its strong long-term appreciation. Is Broadcom Stock Below Fair Value After Its AI Deals?
• Neutral Sentiment: The Samsung agreement highlights both the scale of AI demand and the industry’s rising costs. While guaranteed memory access may support revenue, the size of the commitment could pressure margins, capital requirements, and returns if AI demand or customer orders weaken. Broadcom’s $200 Billion Samsung Deal
• Negative Sentiment: Chip stocks have continued to pull back amid fears that AI-related valuations and capital spending expectations have become excessive, creating a broader headwind for AVGO. Chip Stocks Extend Pullback Amid AI Bubble Fears
• Negative Sentiment: One analyst raised concerns about AI “backstop” arrangements involving Broadcom and Nvidia, warning that these structures could leave the companies with additional liabilities if customers do not meet expected commitments. AI Backstop Concerns

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.