Intact Investment Management Inc. Reduces Stock Position in Broadcom Inc. $AVGO

Intact Investment Management Inc. lowered its stake in Broadcom Inc. (NASDAQ:AVGO) by 29.8% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 65,400 shares of the semiconductor manufacturer’s stock after selling 27,800 shares during the quarter. Intact Investment Management Inc.’s holdings in Broadcom were worth $22,635,000 at the end of the most recent quarter.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. JCIC Asset Management Inc. purchased a new stake in Broadcom in the third quarter worth approximately $31,000. Miller Global Investments LLC purchased a new stake in Broadcom in the fourth quarter worth approximately $31,000. Nvest Wealth Strategies Inc. purchased a new stake in Broadcom in the fourth quarter worth approximately $33,000. Manning & Napier Advisors LLC bought a new position in Broadcom in the third quarter worth approximately $34,000. Finally, Family CFO Inc bought a new position in Broadcom in the fourth quarter worth approximately $35,000. Hedge funds and other institutional investors own 76.43% of the company’s stock.

Key Headlines Impacting Broadcom

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

Insider Activity at Broadcom

In related news, insider S. Ram Velaga sold 38,841 shares of the firm’s stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $321.60, for a total transaction of $12,491,265.60. Following the completion of the transaction, the insider directly owned 96,147 shares of the company’s stock, valued at approximately $30,920,875.20. This trade represents a 28.77% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Mark David Brazeal sold 50,488 shares of the company’s stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $321.60, for a total value of $16,236,940.80. Following the sale, the insider directly owned 278,141 shares in the company, valued at $89,450,145.60. This trade represents a 15.36% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 324,282 shares of company stock valued at $106,425,249. Insiders own 1.90% of the company’s stock.

Broadcom Stock Performance

AVGO opened at $430.00 on Monday. The stock has a market capitalization of $2.04 trillion, a price-to-earnings ratio of 83.98, a PEG ratio of 0.89 and a beta of 1.43. The company has a fifty day moving average of $352.89 and a 200 day moving average of $351.28. Broadcom Inc. has a fifty-two week low of $206.52 and a fifty-two week high of $437.68. The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.73 and a current ratio of 1.90.

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

Broadcom Announces Dividend

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

Analyst Ratings Changes

Several research firms have weighed in on AVGO. Benchmark reiterated a “buy” rating and issued a $485.00 price target on shares of Broadcom in a research report on Thursday, March 5th. Truist Financial increased their price target on shares of Broadcom from $510.00 to $545.00 and gave the stock a “buy” rating in a research report on Thursday, March 5th. Erste Group Bank downgraded shares of Broadcom from a “buy” rating to a “hold” rating in a research report on Thursday, April 2nd. Bank of America decreased their price target on shares of Broadcom from $500.00 to $450.00 and set a “buy” rating on the stock in a research report on Thursday, March 5th. Finally, Rosenblatt Securities reiterated a “buy” rating and issued a $500.00 price target on shares of Broadcom in a research report on Tuesday, April 7th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, Broadcom currently has an average rating of “Moderate Buy” and an average price target of $435.30.

About Broadcom

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.