Opal Capital LLC Buys 4,127 Shares of Broadcom Inc. $AVGO

Opal Capital LLC boosted its stake in Broadcom Inc. (NASDAQ:AVGO) by 55.7% during the 1st quarter, HoldingsChannel.com reports. The fund owned 11,532 shares of the semiconductor manufacturer’s stock after purchasing an additional 4,127 shares during the period. Opal Capital LLC’s holdings in Broadcom were worth $3,569,000 as of its most recent filing with the SEC.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in the stock. Sunbelt Securities Inc. grew its position in shares of Broadcom by 1.9% during the 1st quarter. Sunbelt Securities Inc. now owns 82,762 shares of the semiconductor manufacturer’s stock valued at $25,616,000 after acquiring an additional 1,504 shares during the period. Guardian Partners Inc. increased its stake in shares of Broadcom by 25.9% during the 1st quarter. Guardian Partners Inc. now owns 9,928 shares of the semiconductor manufacturer’s stock worth $3,081,000 after purchasing an additional 2,044 shares during the last quarter. Amundi raised its holdings in shares of Broadcom by 9.6% in the 1st quarter. Amundi now owns 26,064,886 shares of the semiconductor manufacturer’s stock worth $8,067,329,000 after purchasing an additional 2,277,256 shares during the period. Constant Guidance Financial LLC bought a new stake in shares of Broadcom in the 1st quarter worth approximately $200,000. Finally, EverSource Wealth Advisors LLC lifted its stake in Broadcom by 10.6% in the first quarter. EverSource Wealth Advisors LLC now owns 102,979 shares of the semiconductor manufacturer’s stock valued at $31,874,000 after purchasing an additional 9,882 shares during the last quarter. 76.43% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Broadcom

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 Stock Performance

Broadcom stock opened at $370.32 on Thursday. The firm’s 50 day simple moving average is $395.11 and its 200 day simple moving average is $367.66. The company has a current ratio of 2.24, a quick ratio of 2.01 and a debt-to-equity ratio of 0.71. The firm has a market capitalization of $1.76 trillion, a PE ratio of 61.72, a price-to-earnings-growth ratio of 0.73 and a beta of 1.45. Broadcom Inc. has a 1-year low of $281.61 and a 1-year high of $495.00.

Broadcom (NASDAQ:AVGO) last announced its quarterly earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, beating the consensus estimate of $2.40 by $0.04. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The firm had revenue of $22.19 billion during the quarter, compared to the consensus estimate of $22.13 billion. During the same period last year, the firm earned $1.58 EPS. The business’s quarterly revenue was up 47.9% compared to the same quarter last year. As a group, analysts expect that Broadcom Inc. will post 10.24 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Monday, June 22nd were issued a $0.65 dividend. 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 (DPR) is presently 43.33%.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on AVGO. Zacks Research downgraded Broadcom from a “strong-buy” rating to a “hold” rating in a research report on Thursday, May 21st. Evercore reaffirmed an “outperform” rating and set a $582.00 price target on shares of Broadcom in a research report on Tuesday, May 19th. JPMorgan Chase & Co. increased their price target on Broadcom from $500.00 to $580.00 and gave the stock an “overweight” rating in a research note on Thursday, June 4th. Bank of America lifted their price objective on Broadcom from $450.00 to $530.00 and gave the stock a “buy” rating in a report on Thursday, June 4th. Finally, Mizuho boosted their price objective on Broadcom from $480.00 to $530.00 and gave the company an “outperform” rating in a research note on Thursday, June 4th. Twenty-eight research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, Broadcom has a consensus rating of “Moderate Buy” and an average target price of $493.24.

Insiders Place Their Bets

In related news, Director Gayla J. Delly sold 1,890 shares of the firm’s stock in a transaction that occurred on Wednesday, July 8th. The shares were sold at an average price of $385.38, for a total value of $728,368.20. Following the sale, the director directly owned 31,326 shares of the company’s stock, valued at $12,072,413.88. This trade represents a 5.69% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Harry L. You bought 1,000 shares of the company’s stock in a transaction on Thursday, June 11th. The shares were bought at an average price of $373.57 per share, with a total value of $373,570.00. Following the completion of the transaction, the director owned 38,466 shares of the company’s stock, valued at $14,369,743.62. The trade was a 2.67% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last 90 days, insiders have sold 61,644 shares of company stock worth $24,016,214. 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.