2,710 Shares in Broadcom Inc. $AVGO Acquired by Prospect Financial Services LLC

Key Points

• Prospect Financial Services LLC acquired 2,710 Broadcom shares in the second quarter, valued at approximately $1.02 million. Institutional investors collectively own 76.43% of Broadcom’s outstanding stock.
• Broadcom reported strong quarterly results, with revenue rising 47.9% year over year to $22.19 billion and EPS of $2.44, exceeding analyst estimates. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $491.97.
• Despite optimism around AI infrastructure and VMware growth, investors face risks including expected margin contraction, concerns over roughly $60 billion in AI-related financing, and increased competition and customer-concentration worries.

Prospect Financial Services LLC acquired a new stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) in the second quarter, according to the company in its most recent disclosure with the SEC. The firm acquired 2,710 shares of the semiconductor manufacturer's stock, valued at approximately $1,024,000.

Other institutional investors have also recently modified their holdings of the company. Norges Bank purchased a new stake in shares of Broadcom during the fourth quarter valued at approximately $24,252,196,000. Cardano Risk Management B.V. raised its holdings in Broadcom by 895.2% in the 4th quarter. Cardano Risk Management B.V. now owns 12,689,800 shares of the semiconductor manufacturer's stock worth $4,391,940,000 after acquiring an additional 11,414,701 shares during the last quarter. Arrowstreet Capital Limited Partnership lifted its position in Broadcom by 118.1% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 18,739,006 shares of the semiconductor manufacturer's stock valued at $5,799,889,000 after acquiring an additional 10,145,377 shares in the last quarter. State Street Corp boosted its stake in Broadcom by 2.7% during the 4th quarter. State Street Corp now owns 190,084,351 shares of the semiconductor manufacturer's stock valued at $65,788,194,000 after purchasing an additional 5,040,801 shares during the last quarter. Finally, Vanguard Group Inc. boosted its stake in Broadcom by 0.8% during the 4th quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer's stock valued at $167,064,997,000 after purchasing an additional 3,919,715 shares during the last quarter. 76.43% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Rackspace Technology launched a fully managed multitenant cloud platform based on Broadcom’s VMware Cloud Foundation 9.1. The deployment provides early commercial validation for Broadcom’s VMware strategy and targets regulated customers running Kubernetes and AI workloads. Broadcom (AVGO) Debuts VMware Cloud Foundation 9.1 In Managed Multitenant Cloud
• Positive Sentiment: Analysts continue to view Broadcom as a major beneficiary of the shift from AI training toward inference and agentic workloads, supporting the long-term outlook for its custom silicon and networking businesses. Broadcom Vs. Micron: Why They're So Strong as Capital Shifts to Inference and Agentic AI
• Positive Sentiment: Historical analysis argues that the loss or reduction of a major customer’s chip program does not necessarily imply sustained weakness; Broadcom’s revenue grew substantially after a comparable Apple-related concern in 2023. Broadcom Has Seen Its Biggest Customer Drop a Key Chip Before
• Neutral Sentiment: Upcoming NVIDIA earnings and guidance could move Broadcom and other AI stocks, making NVIDIA’s results an important read-through for AI infrastructure demand. NVIDIA Earnings Could Move These 3 AI Stocks
• Neutral Sentiment: Reported short-interest data showed no measurable short position, but the figures appear incomplete or erroneous, limiting their usefulness as a trading signal.
• Negative Sentiment: Analysts expect continued gross-margin contraction in the upcoming third-quarter report, raising concerns that Broadcom’s rapid AI expansion could pressure profitability. Broadcom Q3 Earnings Preview
• Negative Sentiment: Reports that Broadcom is arranging roughly $60 billion of AI-related financing, potentially through structures that keep debt off its balance sheet, have increased investor concerns about leverage, credit-default-swap risk and the ultimate scale of AI deployment obligations. Broadcom’s $60 Billion AI Debt Deal
• Negative Sentiment: Broadcom is also facing broader semiconductor-sector selling ahead of NVIDIA’s report, while Marvell’s expanded custom-chip agreement with Google has intensified worries about customer concentration and competitive pressure. Broadcom Stock Drops Amid Rising Credit Default Swap Concerns

Broadcom Stock Performance

NASDAQ:AVGO opened at $356.74 on Wednesday. The company has a debt-to-equity ratio of 0.71, a quick ratio of 2.01 and a current ratio of 2.24. The stock has a 50-day simple moving average of $387.47 and a two-hundred day simple moving average of $375.72. The firm has a market capitalization of $1.70 trillion, a PE ratio of 59.46, a P/E/G ratio of 0.68 and a beta of 1.45. Broadcom Inc. has a 52-week low of $287.17 and a 52-week high of $495.00.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its quarterly earnings data on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, topping the consensus estimate of $2.40 by $0.04. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.The firm had revenue of $22.19 billion for the quarter, compared to the consensus estimate of $22.13 billion. During the same quarter last year, the company earned $1.58 earnings per share. The business's revenue for the quarter was up 47.9% compared to the same quarter last year. Analysts forecast that Broadcom Inc. will post 10.24 EPS for the current year.

Broadcom Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Monday, June 22nd were paid a $0.65 dividend. The ex-dividend date of this dividend was Monday, June 22nd. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.7%. Broadcom's dividend payout ratio is 43.33%.

Insider Activity

In related news, Director Gayla J. Delly sold 1,890 shares of the company's stock in a transaction on Wednesday, July 8th. The shares were sold at an average price of $385.38, for a total value of $728,368.20. Following the completion of the transaction, the director owned 31,326 shares of the company's stock, valued at approximately $12,072,413.88. This represents a 5.69% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Harry L. You purchased 1,000 shares of the business's stock in a transaction on Thursday, June 11th. The stock was acquired at an average price of $373.57 per share, with a total value of $373,570.00. Following the purchase, the director directly owned 38,466 shares in the company, valued at $14,369,743.62. This represents a 2.67% increase in their position. The SEC filing for this purchase provides additional information. Insiders have sold a total of 61,644 shares of company stock worth $24,016,214 in the last quarter. Corporate insiders own 1.90% of the company's stock.

Wall Street Analysts Forecast Growth

AVGO has been the subject of several recent analyst reports. Truist Financial boosted their price target on Broadcom from $545.00 to $550.00 and gave the stock a "buy" rating in a research note on Thursday, June 4th. Susquehanna reaffirmed a "positive" rating and set a $490.00 price objective (up from $450.00) on shares of Broadcom in a research report on Thursday, May 28th. Weiss Ratings downgraded Broadcom from a "buy (b)" rating to a "buy (b-)" rating in a report on Thursday, July 30th. Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a $515.00 target price (up from $430.00) on shares of Broadcom in a research note on Thursday, June 4th. Finally, Royal Bank Of Canada boosted their price objective on shares of Broadcom from $360.00 to $400.00 and gave the company a "sector perform" rating in a report on Thursday, June 4th. Twenty-nine 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 $491.97.

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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