Ally Financial Inc. Buys New Position in Broadcom Inc. $AVGO

Key Points

• Ally Financial initiated a Broadcom position in the second quarter, buying 34,000 shares valued at approximately $12.8 million. Broadcom now represents about 1.7% of Ally’s portfolio, while institutional investors collectively own 76.43% of the stock.
• Broadcom exceeded quarterly expectations with $29.59 billion in revenue and $3.32 in EPS, with revenue up 85.5% year over year. Analysts maintain a “Moderate Buy” consensus rating and an average price target of $501.77.
• The company declared a quarterly dividend of $0.65 per share, equivalent to a 0.7% annualized yield. Despite strong AI-driven growth expectations, investors remain focused on supply constraints, customer concentration and quarterly revenue guidance that fell slightly below estimates.

Ally Financial Inc. purchased a new position in Broadcom Inc. (NASDAQ:AVGO - Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the SEC. The fund purchased 34,000 shares of the semiconductor manufacturer's stock, valued at approximately $12,844,000. Broadcom makes up approximately 1.7% of Ally Financial Inc.'s holdings, making the stock its 11th largest holding.

A number of other institutional investors have also recently made changes to their positions in the stock. Cornerstone Advisors LLC purchased a new stake in Broadcom in the second quarter worth $92,522,000. Bank of America Corp DE lifted its position in Broadcom by 1.5% during the first quarter. Bank of America Corp DE now owns 58,737,097 shares of the semiconductor manufacturer's stock valued at $18,179,719,000 after buying an additional 894,564 shares during the period. Clear Harbor Asset Management LLC bought a new stake in shares of Broadcom during the 2nd quarter valued at $3,302,000. Bartlett & CO. Wealth Management LLC grew its position in shares of Broadcom by 129.3% in the 1st quarter. Bartlett & CO. Wealth Management LLC now owns 110,048 shares of the semiconductor manufacturer's stock worth $34,061,000 after buying an additional 62,050 shares during the period. Finally, First Bank & Trust grew its position in shares of Broadcom by 17.2% in the 2nd quarter. First Bank & Trust now owns 10,503 shares of the semiconductor manufacturer's stock worth $3,968,000 after buying an additional 1,545 shares during the period. Institutional investors own 76.43% of the company's stock.

Broadcom Stock Performance

AVGO stock opened at $357.16 on Friday. The stock has a market capitalization of $1.70 trillion, a PE ratio of 45.61, a price-to-earnings-growth ratio of 0.70 and a beta of 1.44. Broadcom Inc. has a 12-month low of $289.96 and a 12-month high of $495.00. The company has a current ratio of 2.24, a quick ratio of 2.01 and a debt-to-equity ratio of 0.71. The stock's 50 day simple moving average is $383.71 and its 200 day simple moving average is $377.36.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its quarterly earnings data on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 EPS for the quarter, beating the consensus estimate of $3.22 by $0.10. Broadcom had a return on equity of 50.76% and a net margin of 42.94%.The company had revenue of $29.59 billion for the quarter, compared to analysts' expectations of $29.24 billion. During the same period last year, the firm posted $1.69 earnings per share. Broadcom's revenue was up 85.5% compared to the same quarter last year. As a group, research analysts forecast that Broadcom Inc. will post 10.24 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Monday, September 21st will be issued 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 (DPR) is presently 43.33%.

Insider Activity at Broadcom

In related news, Director Harry L. You purchased 1,000 shares of Broadcom stock in a transaction dated Thursday, June 11th. The stock was purchased at an average cost of $373.57 per share, for a total transaction of $373,570.00. Following the completion of the purchase, the director directly owned 38,466 shares of the company's stock, valued at $14,369,743.62. The trade was a 2.67% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, Director Justine Page sold 1,602 shares of the business's stock in a transaction that occurred on Monday, June 29th. The shares were sold at an average price of $373.86, for a total transaction of $598,923.72. Following the transaction, 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 ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 61,644 shares of company stock worth $24,016,214. 1.90% of the stock is owned by insiders.

Analysts Set New Price Targets

A number of brokerages recently issued reports on AVGO. Bank of America lifted their price target on shares of Broadcom from $450.00 to $530.00 and gave the company a "buy" rating in a research report on Thursday, June 4th. Fox Advisors raised shares of Broadcom to an "outperform" rating in a research note on Thursday. DA Davidson boosted their price target on Broadcom from $375.00 to $400.00 and gave the stock a "neutral" rating in a research report on Thursday, June 4th. Oppenheimer restated an "outperform" rating and issued a $535.00 price target (up from $450.00) on shares of Broadcom in a research note on Thursday, June 4th. Finally, Dbs Bank raised Broadcom to a "moderate buy" rating in a research report on Thursday, June 18th. Thirty-one research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $501.77.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom reported fiscal third-quarter revenue of $29.6 billion, up 86% year over year, and non-GAAP EPS of $3.32, exceeding estimates of $29.43 billion and $3.22. AI semiconductor revenue surged 221% to $16.7 billion, while free cash flow reached $13.7 billion. Broadcom fiscal third-quarter results
• Positive Sentiment: Management raised its fiscal 2027 AI revenue outlook to $115 billion and projected $230 billion in fiscal 2028, alongside confidence in fiscal 2027 EPS of at least $30. Analysts including Macquarie, Cantor Fitzgerald, BMO and Rosenblatt responded with upgrades or higher price targets, supporting the long-term AI investment case. Broadcom AI growth outlook
• Neutral Sentiment: Broadcom declared a quarterly dividend of $0.65 per share, payable September 30 to shareholders of record September 21. The dividend provides modest income but is unlikely to drive the stock’s near-term performance. Broadcom dividend announcement
• Negative Sentiment: Fiscal fourth-quarter revenue guidance of approximately $34.8 billion was below Wall Street’s roughly $35.0 billion expectation. Investors viewed the outlook as insufficient given AVGO’s premium valuation and elevated AI expectations, overshadowing the earnings beat. Broadcom forecasts quarterly revenue below estimates
• Negative Sentiment: Investors are also weighing supply constraints involving power, land, chips and substrates, along with customer concentration among major hyperscalers such as Alphabet, Anthropic and OpenAI. Competition from custom-chip rivals, including Marvell, adds uncertainty to the ambitious long-term forecast. Broadcom AI supply constraints
• Negative Sentiment: Recent disclosures that Third Point exited its Broadcom position and that company insiders have overwhelmingly sold shares may reinforce profit-taking concerns, although these transactions are not necessarily indicative of deteriorating fundamentals. Dan Loeb exits Broadcom position

Broadcom Company 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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