Legato Capital Management LLC Decreases Holdings in Broadcom Inc. $AVGO

Legato Capital Management LLC lowered its position in shares of Broadcom Inc. (NASDAQ:AVGO) by 29.6% in the third quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 28,116 shares of the semiconductor manufacturer’s stock after selling 11,795 shares during the quarter. Broadcom makes up about 1.0% of Legato Capital Management LLC’s investment portfolio, making the stock its 8th largest position. Legato Capital Management LLC’s holdings in Broadcom were worth $9,276,000 at the end of the most recent reporting period.

Other large investors have also made changes to their positions in the company. Norges Bank bought a new position in shares of Broadcom in the 2nd quarter valued at about $18,579,549,000. Vanguard Group Inc. raised its stake in shares of Broadcom by 1.3% during the second quarter. Vanguard Group Inc. now owns 483,442,939 shares of the semiconductor manufacturer’s stock worth $133,261,046,000 after buying an additional 6,222,802 shares during the last quarter. Edgewood Management LLC acquired a new position in Broadcom in the second quarter valued at approximately $1,571,438,000. Massachusetts Financial Services Co. MA boosted its stake in Broadcom by 115.5% in the second quarter. Massachusetts Financial Services Co. MA now owns 6,017,340 shares of the semiconductor manufacturer’s stock valued at $1,658,680,000 after acquiring an additional 3,224,739 shares during the last quarter. Finally, Invesco Ltd. boosted its stake in Broadcom by 8.4% in the second quarter. Invesco Ltd. now owns 38,449,630 shares of the semiconductor manufacturer’s stock valued at $10,598,641,000 after acquiring an additional 2,978,768 shares during the last quarter. Institutional investors and hedge funds own 76.43% of the company’s stock.

Analyst Ratings Changes

A number of research analysts have recently weighed in on AVGO shares. Morgan Stanley increased their price target on Broadcom from $443.00 to $462.00 and gave the company an “overweight” rating in a research note on Friday, December 12th. Sanford C. Bernstein restated an “outperform” rating and set a $475.00 target price (up from $400.00) on shares of Broadcom in a report on Friday, December 12th. DA Davidson raised Broadcom to a “hold” rating in a research note on Friday, February 13th. Royal Bank Of Canada reduced their price objective on shares of Broadcom from $370.00 to $340.00 and set a “sector perform” rating on the stock in a research note on Monday. Finally, Robert W. Baird set a $420.00 price objective on shares of Broadcom in a report on Friday, December 12th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty have assigned a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Buy” and a consensus target price of $432.13.

Broadcom News Roundup

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Analysts and coverage note Broadcom’s AI franchise remains the primary growth driver — the stock’s 60% one‑year run reflects rapid AI revenue expansion that could support upside if guidance beats. Should You Buy Broadcom Stock Before Thursday? Here’s What History and Wall Street Suggest
• Positive Sentiment: Product roadmap: Broadcom announced a 2nm custom compute SoC for AI clusters and a BroadPeak RF front‑end SoC targeting 5G/6G — moves that reinforce data‑center and telecom leadership and could support longer‑term revenue and margin strength. Broadcom’s 2nm SoC And BroadPeak Aim At AI And 6G Growth
• Positive Sentiment: Competitive positioning: Morgan Stanley coverage on Marvell notes Broadcom is the main source of share pressure — implying Broadcom is winning design engagements in data‑center/AI networking. Marvell’s Solid Underlying Demand Should Offset Any Share Loss, Morgan Stanley Says
• Positive Sentiment: Bullish institutional view: Robert W. Baird reiterated a Buy rating, signaling some analysts still expect upside into earnings. Robert W. Baird Maintains Buy Rating on Broadcom Inc. (AVGO) Stock
• Neutral Sentiment: Earnings catalyst: Broadcom reports after the close tomorrow — results and forward commentary on AI revenue growth, margins and bookings are the key near‑term drivers and could produce volatility. Broadcom (AVGO) To Report Earnings Tomorrow: Here Is What To Expect
• Neutral Sentiment: Mixed outlook pieces highlight AI revenue doubling but warn of margin pressure and valuation — the story is positive for top‑line growth but raises execution and multiple‑risk questions ahead of guidance. Buy, Sell or Hold Broadcom Stock? Key Tips Ahead of Q1 Earnings
• Neutral Sentiment: Valuation check: Some models show a “deep discount” into earnings but short‑term returns have been weak — near‑term risk/reward depends heavily on this quarter’s guidance. Broadcom: Deep Discount Before Earnings
• Negative Sentiment: Analyst trim: RBC cut its price target from $370 to $340 and moved to sector perform, signaling reduced near‑term upside from current levels. RBC Lowers Price Target
• Negative Sentiment: Governance/headline risk: Reports show CEO Hock Tan’s 2025 pay package at $205.3M — a potential PR/governance overhang that can pressure sentiment. AI boom drives Broadcom CEO Hock Tan’s 2025 pay package to $205.3M
• Negative Sentiment: Market timing caution: High‑profile commentators (Jim Cramer) warned the stock is “too hard to own right now,” which can amplify selling pressure into earnings. Jim Cramer on Broadcom: “This Is One of Those That’s Just Too Hard to Own Right Now”

Broadcom Price Performance

NASDAQ AVGO opened at $318.82 on Tuesday. The firm’s 50 day moving average is $335.88 and its 200-day moving average is $342.81. The company has a quick ratio of 1.58, a current ratio of 1.71 and a debt-to-equity ratio of 0.76. The company has a market capitalization of $1.51 trillion, a PE ratio of 66.98, a price-to-earnings-growth ratio of 1.02 and a beta of 1.21. Broadcom Inc. has a 12-month low of $138.10 and a 12-month high of $414.61.

Broadcom (NASDAQ:AVGO) last announced its quarterly earnings data on Thursday, December 11th. The semiconductor manufacturer reported $1.95 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.87 by $0.08. The company had revenue of $18.02 billion for the quarter, compared to analysts’ expectations of $17.46 billion. Broadcom had a return on equity of 37.45% and a net margin of 36.20%.The business’s revenue was up 28.2% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.42 EPS. Equities research analysts anticipate that Broadcom Inc. will post 5.38 earnings per share for the current fiscal year.

Broadcom Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, December 31st. Stockholders of record on Monday, December 22nd were paid a dividend of $0.65 per share. The ex-dividend date was Monday, December 22nd. This represents a $2.60 annualized dividend and a dividend yield of 0.8%. This is an increase from Broadcom’s previous quarterly dividend of $0.59. Broadcom’s dividend payout ratio is presently 54.62%.

Insiders Place Their Bets

In other news, CEO Hock E. Tan sold 130,000 shares of the stock in a transaction dated Thursday, December 18th. The shares were sold at an average price of $326.02, for a total value of $42,382,600.00. Following the transaction, the chief executive officer directly owned 595,638 shares of the company’s stock, valued at $194,189,900.76. This represents a 17.92% 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, CFO Kirsten M. Spears sold 30,000 shares of the company’s stock in a transaction dated Wednesday, December 31st. The shares were sold at an average price of $347.82, for a total transaction of $10,434,600.00. Following the completion of the transaction, the chief financial officer owned 277,237 shares in the company, valued at approximately $96,428,573.34. This trade represents a 9.76% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 779,101 shares of company stock valued at $283,804,325 over the last 90 days. 2.00% of the stock is owned by insiders.

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.