14,645 Shares in Broadcom Inc. $AVGO Purchased by Magnolia Capital Advisors LLC

Key Points

• Magnolia Capital Advisors initiated a Broadcom position by buying 14,645 shares worth approximately $5.5 million, while institutional investors collectively own 76.43% of the company.
• Broadcom exceeded quarterly expectations with adjusted earnings of $3.32 per share and revenue of $29.59 billion, up 85.5% year over year. AI semiconductor revenue rose 221%, though supply constraints and slightly disappointing fourth-quarter guidance remain concerns.
• Analysts maintain a largely bullish outlook, with 31 Buy ratings and four Holds producing a “Moderate Buy” consensus and an average price target of $500.60. Broadcom also declared a quarterly dividend of $0.65 per share.

Magnolia Capital Advisors LLC purchased a new stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund purchased 14,645 shares of the semiconductor manufacturer's stock, valued at approximately $5,532,000. Broadcom accounts for 0.9% of Magnolia Capital Advisors LLC's investment portfolio, making the stock its 27th largest holding.

A number of other hedge funds and other institutional investors have also bought and sold shares of the business. ROSS JOHNSON & Associates LLC increased its stake in shares of Broadcom by 1,320.0% during the fourth quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer's stock valued at $25,000 after buying an additional 66 shares during the period. SWAN Capital LLC lifted its stake in Broadcom by 261.9% in the fourth quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer's stock worth $26,000 after acquiring an additional 55 shares during the period. Networth Advisors LLC lifted its stake in Broadcom by 546.2% in the first quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer's stock worth $26,000 after acquiring an additional 71 shares during the period. Harborfront Financial Group LLC bought a new stake in Broadcom in the second quarter valued at $38,000. Finally, Cherry Tree Wealth Management LLC boosted its holdings in Broadcom by 44.9% in the fourth quarter. Cherry Tree Wealth Management LLC now owns 129 shares of the semiconductor manufacturer's stock valued at $45,000 after acquiring an additional 40 shares in the last quarter. Institutional investors own 76.43% of the company's stock.

Insider Buying and Selling at Broadcom

In other news, Director Justine Page sold 1,602 shares of the business's stock in a transaction that occurred on Monday, June 29th. The stock was sold at an average price of $373.86, for a total value of $598,923.72. Following the sale, the director directly owned 17,426 shares of the company's stock, valued at $6,514,884.36. The trade was a 8.42% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Mark Brazeal sold 25,000 shares of the company's stock in a transaction that occurred on Friday, July 10th. The stock was sold at an average price of $401.33, for a total value of $10,033,250.00. Following the completion of the sale, the insider owned 194,989 shares in the company, valued at $78,254,935.37. The trade was a 11.36% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 61,644 shares of company stock worth $24,016,214 over the last three months. Company insiders own 1.90% of the company's stock.

Analyst Upgrades and Downgrades

Several brokerages have commented on AVGO. Deutsche Bank Aktiengesellschaft restated a "buy" rating and issued a $515.00 price objective (up from $430.00) on shares of Broadcom in a report on Thursday, June 4th. Wall Street Zen cut shares of Broadcom from a "strong-buy" rating to a "buy" rating in a research report on Saturday, July 18th. Weiss Ratings downgraded shares of Broadcom from a "buy (b)" rating to a "buy (b-)" rating in a research note on Thursday, July 30th. Wells Fargo & Company restated an "overweight" rating and issued a $545.00 price objective (up from $430.00) on shares of Broadcom in a report on Thursday, May 14th. Finally, Cantor Fitzgerald lifted their price objective on Broadcom from $525.00 to $600.00 and gave the company an "overweight" rating in a research report on Thursday. Thirty-one investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $500.60.

Key Headlines Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Investor interest in Broadcom’s AI opportunity remains strong. AI semiconductor revenue surged 221% year over year to $16.7 billion, while management raised its AI revenue outlook to approximately $115 billion for fiscal 2027 and $230 billion for fiscal 2028. Several analysts and commentators view the selloff as a buying opportunity. The Path to $230 Billion: Broadcom Outlines the Next Phase of Its AI Growth Story
• Positive Sentiment: Analysts continue to see substantial upside despite some target reductions. Truist maintained a buy rating with a $520 target, while other firms cited targets ranging from $575 to $600. Macquarie upgraded Broadcom to Outperform, citing strong custom-chip growth and reduced concerns about customers developing chips internally. These Analysts Increase Their Forecasts On Broadcom Following Upbeat Q3 Earnings
• Positive Sentiment: Unusual options activity provided another bullish trading signal: investors purchased roughly 373,000 call options, about 26% above average call volume. Broadcom also declared a quarterly dividend of $0.65 per share, payable September 30 to eligible shareholders.
• Neutral Sentiment: Broadcom beat quarterly expectations with adjusted earnings of $3.32 per share versus a $3.22 consensus and revenue of $29.59 billion. The company’s long-term AI demand commentary was strong, but investors are focused on whether supply, power, land and data-center construction constraints can limit near-term shipments. Broadcom CEO Says AI Demand Could Be Significantly Higher
• Negative Sentiment: The main pressure remains Broadcom’s fourth-quarter revenue outlook of $34.8 billion, slightly below Wall Street’s roughly $35.0 billion expectation. The modest guidance miss, concerns about margin compression and customer concentration—including major AI customers—caused the initial sell-the-news reaction despite excellent AI growth.
• Negative Sentiment: Third Point disclosed that it exited its remaining Broadcom position during the second quarter. Although the holding was relatively small, the sale adds to caution around elevated valuation and expectations for the AI-chip cycle.

Broadcom Stock Performance

Shares of AVGO stock opened at $357.89 on Friday. Broadcom Inc. has a 12 month low of $289.96 and a 12 month high of $495.00. The stock has a market cap of $1.70 trillion, a PE ratio of 45.71, a price-to-earnings-growth ratio of 0.68 and a beta of 1.44. The company has a current ratio of 2.50, a quick ratio of 2.01 and a debt-to-equity ratio of 0.57. The company's fifty day moving average price is $383.57 and its 200-day moving average price is $377.23.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share for the quarter, topping analysts' consensus estimates of $3.22 by $0.10. The firm had revenue of $29.59 billion for the quarter, compared to the consensus estimate of $29.24 billion. Broadcom had a net margin of 42.94% and a return on equity of 48.33%. The company's revenue was up 85.5% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.69 EPS. On average, equities analysts expect that Broadcom Inc. will post 10.25 EPS for the current fiscal year.

Broadcom Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Monday, September 21st will be issued a $0.65 dividend. This represents a $2.60 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date is Monday, September 21st. Broadcom's dividend payout ratio is 33.21%.

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.

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