2,445 Shares in Broadcom Inc. $AVGO Acquired by FSA Advisors Inc.

Key Points

• FSA Advisors acquired 2,445 Broadcom shares worth approximately $921,000 in the second quarter, joining other institutional investors that increased their positions. Institutions collectively own 76.43% of Broadcom’s stock.
• Broadcom beat quarterly expectations with earnings of $3.32 per share and revenue of $29.59 billion, up 85.5% year over year. The company also declared a quarterly dividend of $0.65 per share, representing a 0.7% annualized yield.
• Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and a $500.60 price target, although concerns include slightly below-consensus revenue guidance, valuation, margin pressure, customer concentration, and insider selling.

FSA Advisors Inc. purchased a new stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the SEC. The firm purchased 2,445 shares of the semiconductor manufacturer's stock, valued at approximately $921,000.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in the stock. Harvey Capital Management Inc. bought a new position in shares of Broadcom in the second quarter valued at about $578,000. N10 Assets LLC bought a new position in shares of Broadcom during the second quarter worth approximately $7,888,000. Coastal Bridge Advisors LLC lifted its holdings in Broadcom by 8.2% during the 2nd quarter. Coastal Bridge Advisors LLC now owns 19,028 shares of the semiconductor manufacturer's stock worth $7,188,000 after purchasing an additional 1,438 shares during the last quarter. Triton Financial Group Inc acquired a new stake in shares of Broadcom during the second quarter worth $2,835,000. Finally, Stonehage Fleming Financial Services Holdings Ltd boosted its position in shares of Broadcom by 14.8% in the second quarter. Stonehage Fleming Financial Services Holdings Ltd now owns 610,705 shares of the semiconductor manufacturer's stock valued at $230,694,000 after acquiring an additional 78,556 shares during the period. 76.43% of the stock is owned by institutional investors.

Broadcom Price Performance

Shares of AVGO opened at $357.89 on Monday. The firm has a market cap of $1.70 trillion, a PE ratio of 45.71 and a beta of 1.44. Broadcom Inc. has a 52-week low of $289.96 and a 52-week high of $495.00. The business's 50 day moving average price is $383.57 and its two-hundred day moving average price is $377.59. The company has a debt-to-equity ratio of 0.57, a quick ratio of 2.29 and a current ratio of 2.50.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its quarterly earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share for the quarter, beating the consensus estimate of $3.22 by $0.10. The firm had revenue of $29.59 billion during 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 business's revenue was up 85.5% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.69 earnings per share. On average, equities analysts anticipate that Broadcom Inc. will post 10.25 EPS for the current year.

Broadcom Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Monday, September 21st will be given a dividend of $0.65 per share. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend is Monday, September 21st. Broadcom's dividend payout ratio is presently 33.21%.

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.

Insider Transactions at Broadcom

In related news, Director Justine Page sold 1,602 shares of the company's stock in a transaction dated Monday, June 29th. The shares were sold at an average price of $373.86, for a total value of $598,923.72. Following the sale, the director owned 17,426 shares in the company, valued at $6,514,884.36. This represents a 8.42% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Mark Brazeal sold 25,000 shares of the 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 directly owned 194,989 shares of the company's stock, valued at approximately $78,254,935.37. This trade represents a 11.36% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 61,644 shares of company stock valued at $24,016,214 in the last 90 days. 1.90% of the stock is currently owned by company insiders.

Analyst Ratings Changes

A number of analysts have issued reports on AVGO shares. Oppenheimer reissued an "outperform" rating and issued a $535.00 price objective (up from $450.00) on shares of Broadcom in a report on Thursday, June 4th. Mizuho lifted their price objective on shares of Broadcom from $480.00 to $530.00 and gave the company an "outperform" rating in a research note on Thursday, June 4th. JPMorgan Chase & Co. lifted their price target on Broadcom from $500.00 to $580.00 and gave the company an "overweight" rating in a research note on Thursday, June 4th. Fox Advisors raised Broadcom to an "outperform" rating in a research note on Thursday. Finally, BMO Capital Markets boosted their target price on shares of Broadcom from $455.00 to $575.00 and gave the stock an "outperform" rating in a research note on Thursday. Thirty-one research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $500.60.

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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