Abound Wealth Management Boosts Stock Position in Broadcom Inc. $AVGO

Key Points

• Abound Wealth Management increased its Broadcom stake by 60% in the second quarter, bringing its holdings to 20,872 shares valued at approximately $7.9 million. Institutional investors collectively own 76.43% of Broadcom.
• Broadcom reported quarterly revenue of $22.19 billion, up 47.9% year over year, and earnings of $2.44 per share, exceeding analyst expectations. AI semiconductor revenue rose 143% to $10.8 billion, while management reaffirmed its long-term AI revenue outlook.
• Shares opened at $416.08, with a market capitalization near $2 trillion and a price-to-earnings ratio of 69.35. Despite broadly positive analyst sentiment and a $493.24 average price target, insiders sold more than $24 million of stock over the past 90 days, highlighting valuation and profit-taking risks.

Abound Wealth Management lifted its holdings in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 60.0% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 20,872 shares of the semiconductor manufacturer's stock after buying an additional 7,827 shares during the quarter. Broadcom makes up approximately 1.6% of Abound Wealth Management's investment portfolio, making the stock its 15th largest position. Abound Wealth Management's holdings in Broadcom were worth $7,884,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also recently made changes to their positions in the company. Norges Bank purchased a new stake in Broadcom in the 4th quarter worth $24,252,196,000. Cardano Risk Management B.V. lifted its holdings in Broadcom by 895.2% during the fourth quarter. Cardano Risk Management B.V. now owns 12,689,800 shares of the semiconductor manufacturer's stock valued at $4,391,940,000 after purchasing an additional 11,414,701 shares in the last quarter. Arrowstreet Capital Limited Partnership lifted its holdings in Broadcom by 118.1% during the first quarter. Arrowstreet Capital Limited Partnership now owns 18,739,006 shares of the semiconductor manufacturer's stock valued at $5,799,889,000 after purchasing an additional 10,145,377 shares in the last quarter. State Street Corp grew its position in shares of Broadcom by 2.7% in the fourth 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 period. Finally, Vanguard Group Inc. grew its position in shares of Broadcom by 0.8% in the fourth 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 period. Hedge funds and other institutional investors own 76.43% of the company's stock.

Insider Buying and Selling at Broadcom

In related news, Director Justine Page sold 1,602 shares of the 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 completion of the sale, the director owned 17,426 shares of the company's stock, valued at approximately $6,514,884.36. This trade represents a 8.42% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Gayla J. Delly sold 1,890 shares of Broadcom stock in a transaction that occurred on Wednesday, July 8th. The stock was sold at an average price of $385.38, for a total value of $728,368.20. Following the transaction, the director owned 31,326 shares in the company, valued at approximately $12,072,413.88. The trade was a 5.69% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 61,644 shares of company stock valued at $24,016,214. Company insiders own 1.90% of the company's stock.

Broadcom Price Performance

Shares of NASDAQ AVGO opened at $416.08 on Wednesday. The firm has a 50-day simple moving average of $390.93 and a 200-day simple moving average of $371.83. The stock has a market capitalization of $1.98 trillion, a price-to-earnings ratio of 69.35, a price-to-earnings-growth ratio of 0.81 and a beta of 1.45. The company has a quick ratio of 2.01, a current ratio of 2.24 and a debt-to-equity ratio of 0.71. Broadcom Inc. has a 52 week low of $281.87 and a 52 week high of $495.00.

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

Broadcom Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Monday, June 22nd were paid a $0.65 dividend. This represents a $2.60 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date of this dividend was Monday, June 22nd. Broadcom's dividend payout ratio (DPR) is 43.33%.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: AI revenue outlook remains a major catalyst. Broadcom’s AI semiconductor revenue increased 143% year over year to $10.8 billion in fiscal second quarter. CEO Hock Tan reaffirmed that fiscal 2027 AI semiconductor revenue should exceed $100 billion, supporting the long-term growth narrative. Hock Tan Reaffirmed Broadcom's $100 Billion AI Forecast
• Positive Sentiment: Broadcom could benefit from multiple AI infrastructure channels. Coverage highlighted its custom-chip and networking exposure, while AMD’s Helios rack-scale systems could create additional demand for Broadcom components. Analysts also view Broadcom as a potentially attractive complement to NVIDIA in an AI-focused portfolio. AMD’s Helios Launch Could Create Winners Beyond AMD Stock
• Positive Sentiment: Software and security initiatives broaden the story. Broadcom joined NVIDIA and other companies as a founding member of the Open Secure AI Alliance, while expanding VMware Cloud Foundation security features. These efforts may strengthen its enterprise software position and help defend against Nutanix and IBM. Broadcom Boosts VCF Security
• Neutral Sentiment: Brokerage sentiment remains supportive, with Broadcom carrying a consensus “Moderate Buy” rating and at least one firm raising its fiscal 2027 EPS estimate. Reported short interest was zero shares, offering no meaningful evidence of either short-covering demand or elevated bearish positioning.
• Negative Sentiment: Near-term trading pressure reflects valuation and profit-taking. Broadcom pulled back after its extended rally, while comparisons showed NVIDIA retaining advantages in some AI markets. Crake Asset Management also trimmed its position by 330,000 shares, a modest sentiment headwind. Broadcom Slips After Seven-Session Advance

Wall Street Analyst Weigh In

AVGO has been the subject of several research analyst reports. Weiss Ratings downgraded shares of Broadcom from a "buy (b)" rating to a "buy (b-)" rating in a research report on Thursday, July 30th. TD Cowen reiterated a "buy" rating and issued a $500.00 price objective on shares of Broadcom in a report on Thursday, June 4th. JPMorgan Chase & Co. boosted their price objective on Broadcom from $500.00 to $580.00 and gave the stock an "overweight" rating in a research note on Thursday, June 4th. Susquehanna reissued a "positive" rating and set a $490.00 target price (up from $450.00) on shares of Broadcom in a report on Thursday, May 28th. Finally, The Goldman Sachs Group restated a "buy" rating on shares of Broadcom in a research report on Monday, August 3rd. Twenty-eight equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $493.24.

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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