7,162 Shares in Broadcom Inc. $AVGO Purchased by D.B. Root & Company LLC

Key Points

• D.B. Root & Company LLC initiated a Broadcom position by purchasing 7,162 shares worth approximately $2.7 million, making AVGO its 25th-largest holding. Institutional investors collectively own 76.43% of the company.
• Broadcom exceeded quarterly expectations with adjusted EPS of $3.32 and revenue of $29.59 billion, up 85.5% year over year. AI semiconductor revenue surged 221% to $16.7 billion, though supply constraints, customer concentration and slightly below-consensus guidance remain concerns.
• Wall Street maintains a Moderate Buy consensus, with 31 Buy ratings and an average price target of $500.60. Broadcom also declared a quarterly dividend of $0.65 per share, representing a 0.7% annualized yield.

D.B. Root & Company LLC purchased a new position in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 7,162 shares of the semiconductor manufacturer's stock, valued at approximately $2,705,000. Broadcom comprises about 0.6% of D.B. Root & Company LLC's holdings, making the stock its 25th largest holding.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in AVGO. ROSS JOHNSON & Associates LLC boosted its position 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 worth $25,000 after purchasing an additional 66 shares in the last quarter. Networth Advisors LLC grew its position in shares of Broadcom by 546.2% in the 1st quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer's stock valued at $26,000 after purchasing an additional 71 shares during the period. SWAN Capital LLC grew its position in shares of Broadcom by 261.9% in the 4th quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer's stock valued at $26,000 after purchasing an additional 55 shares during the period. Harborfront Financial Group LLC bought a new stake in Broadcom during the 2nd quarter worth approximately $38,000. Finally, Cherry Tree Wealth Management LLC raised its holdings in Broadcom by 44.9% during the 4th quarter. Cherry Tree Wealth Management LLC now owns 129 shares of the semiconductor manufacturer's stock worth $45,000 after buying an additional 40 shares during the period. Institutional investors own 76.43% of the company's stock.

Insider Activity

In other news, Director Harry L. You acquired 1,000 shares of Broadcom stock in a transaction dated Thursday, June 11th. The shares were bought at an average cost of $373.57 per share, with a total value of $373,570.00. Following the purchase, the director owned 38,466 shares in the company, valued at $14,369,743.62. This trade represents a 2.67% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Mark Brazeal sold 25,000 shares of the company's stock in a transaction dated Friday, July 10th. The shares were sold at an average price of $401.33, for a total value of $10,033,250.00. Following the sale, the insider owned 194,989 shares in the company, valued at approximately $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 have sold a total of 61,644 shares of company stock worth $24,016,214 over the last quarter. Company insiders own 1.90% of the company's stock.

Broadcom News Summary

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 Up 0.2%

AVGO opened at $357.89 on Friday. 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. Broadcom Inc. has a 1-year low of $289.96 and a 1-year high of $495.00. The stock's fifty day simple moving average is $383.57 and its 200 day simple moving average is $377.23.

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

Broadcom Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Monday, September 21st will be paid a $0.65 dividend. 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 payout ratio is currently 43.33%.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on AVGO. Evercore set a $578.00 price target on shares of Broadcom in a report on Thursday. Lake Street Capital upgraded shares of Broadcom to a "buy" rating in a report on Thursday. Wall Street Zen cut shares of Broadcom from a "strong-buy" rating to a "buy" rating in a research report on Saturday, July 18th. Susquehanna reaffirmed a "positive" rating and issued a $490.00 target price (up from $450.00) on shares of Broadcom in a research note on Thursday, May 28th. Finally, Morgan Stanley reiterated an "overweight" rating and set a $505.00 target price (up from $502.00) on shares of Broadcom in a report on Thursday. Thirty-one analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average 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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