Broadcom shareholders: Who owns the most AVGO stock?
Shareholders of Broadcom (AVGO), the semiconductor manufacturer, have endured a turbulent year with the stock falling sharply – before starting to recover.
The US-based growth company’s stock price dropped 36% from $663.32 in early January 2022 to $427.10 by mid-October in an economically challenging period.
Broadcom shareholders may have been delighted to see it recover 21% of this lost ground over the past month to reach $518.09 as the market closed on 11 November, 2022.
So, what does this mean for AVGO shareholders? Here we take a look at the company’s prospects and how they may affect Broadcom’s biggest shareholders.
What is Broadcom?
US-based Broadcom has a diverse product portfolio that includes semiconductor and infrastructure software solutions. It was founded in the early 1960s and went public on the Nasdaq in August 2009 under the ticker symbol ‘AVGO’.
Shares launched at $15. They subsequently traded as high as $19 and as low as $14.33, according to the company’s annual report for that year.
The Broadcom stock price has risen 124% over the past five years to 14 November 2022, from $271.86 to $521.02. Its all-time high of $658.71 was achieved on 27 December 2021.
In early November 2022, VMware stockholders voted to approve its proposed acquisition by Broadcom. The deal for VMware, a leading provider of multi-cloud services for all apps, is expected to close in Broadcom’s fiscal year 2023, which began in November 2022.
What is your sentiment on AVGO?
Broadcom shareholders: Who owns the most AVGO shares?
Most companies are owned by a mix of investors, including financial institutions, insiders working at the organisation and public shareholders. The split between these various groups can make a significant difference to how the business is managed.
A prime example is when one shareholder has a particularly large holding, giving them more influence over the business and its direction.
Shareholdings can also have voting implications as someone owning a large percentage of the stock can use their votes at annual meetings to direct company policy. Major shareholders often demand a seat on the board to give them even greater influence over decisions being taken at the most senior level. That’s why it’s important to know who owns the most shares of Broadcom.
Insiders holding significant stakes is also relevant. If these individuals buy more stock, it can be seen as a sign of faith in the company’s future prospects. Conversely, if a senior executive is offloading stock, it could be taken as an early warning of trouble. This is why it’s important to keep an eye on such share dealing.
Elsewhere, a rival company building up a stake in the business could suggest a takeover is being plotted, which may or may not be positive for existing shareholders.
Five biggest AVGO shareholders
Here we take a look at some of the Broadcom major shareholders, with institutions currently owning significant amounts of stock.
Dimensional Fund Advisors
The private investment firm based in Austin, Texas, US, is the largest shareholder in the company, according to MarketBeat. It currently holds 1,858,783 shares, with a market value of $823.16m. This gives it 0.458% ownership in Broadcom.
Dimensional was founded more than four decades ago. It boasts 1,500 employees in 14 offices around the world and currently has $540bn in assets under management. The company’s approach is to draw information about expected returns from the market:
Barrow Hanley Mewhinney & Straus
The US-based global investment management business has 781,383 shares with a market value of $346.94m. Its ownership of Broadcom is currently 0.19%.
Founded in 1979, the company’s services include portfolio management, mutual funds, and financial planning to clients around the world. It has a particular focus on global value investing with equity strategies across US, non-US, global, emerging markets and environmental, social and governance (ESG). There are also a wide array of fixed income strategies.
“Barrow Hanley enjoys a boutique culture with a singular focus to assist clients in meeting their investment objectives,” the company has said.
Credit Suisse AG
The Swiss-based financial services group was founded back in 1856 and now has more than 50,000 employees across the globe. Credit Suisse owns 579,563 shares in Broadcom, with a market value of $257.33m, giving it a 0.3% ownership in the business.
The company serves clients through four divisions: wealth management, investment banking, Swiss banking and asset management.
“We apply environmental, social and governance criteria at various points in the investment process with an active sustainability offering,” it has stated.
Envestnet Asset Management
The US-based financial services company owns 562,259 shares in Broadcom, with a market value of $249.65m. This puts its ownership level at 0.1%.
Envestnet was founded in 1999, and has since established itself as a leading provider of intelligent systems for wealth management and financial wellness.
It’s stated mission is to provide “innovative technology, solutions, and intelligence” to empower financial advisors and financial service providers.
Bill Crager, Envestnet’s CEO, has said:
Cullen Capital Management
Founded in the early 1980s, the company has more than $20bn assets under advisement. It currently owns 497,613 shares in Broadcom with a $180.98m market value.
Cullen has developed a range of value-based strategies that include a focus on the US, global and emerging markets.
“Every portfolio we manage owns stocks that we believe are undervalued and have above-average capital appreciation potential,” it has stated.
Insider ownership
Insider ownership in Broadcom is 2.30%, according to MarketBeat. The most recently recorded insider share transaction was Diane M. Bryant, who has been a member of Broadcom’s board of directors since January 2019.
According to documents filed with the US Securities and Exchange Commission (SEC), she sold 476 shares at an average price of $629.55 in early April, for an overall value of $299,655.
Previously, Kirsten Spears, Broadcom’s chief financial officer and chief accounting officer, sold 3,000 shares at an average price of $625.86 in March 2022. This made a total of $1.87m, according to data filed with the SEC.
Conclusion
In September, Abhinav Davuluri, sector strategist at Morningstar, maintained his fair value estimate for Broadcom at $624. This reflected a “75% probability” that its pending VMware acquisition closes sometime in fiscal 2023, with the fair value estimate of the combined entity at $645. This includes cost synergies that Broadcom can extract from the deal.
“Our standalone fair value estimate for Broadcom remains $562 per share,” he stated.
Davuluri pointed out that Broadcom’s foray into enterprise software has picked up steam over the past four years as it bought CA Technologies and Symantec’s enterprise business.
“VMware’s data centre virtualisation business fits nicely with Broadcom’s existing software offerings tailored to enterprises that generate strong cash flows,” he added.
While it may be useful to know who the shareholders of Broadcom are, it shouldn’t be used as a substitute for your own research. Always conduct your own due diligence, looking at the latest stock news, a wide range of analyst commentary, technical and fundamental analysis. And never invest money you cannot afford to lose.
FAQs
How many Broadcom shares are there?
How many shareholders does Broadcom have?
Broadcom has 3,290 institutional owners and shareholders. Institutional investors bought a total of 57,370,874 shares in the last 24 months. This represents approximately $30.43bn in transactions.
Who owns Broadcom?
Broadcom is owned by a mix of investors. According to MarketBeat, the majority of shareholders are institutions, which own 79.60% of the company.
