AlphaGrep UK Ltd Purchases New Shares in Broadcom Inc. $AVGO

Key Points

• AlphaGrep UK Ltd. purchased 1,906 Broadcom shares worth approximately $720,000 during the second quarter, while institutional investors collectively own 76.43% of AVGO.
• Broadcom reported quarterly EPS of $3.32 and revenue of $29.59 billion, beating estimates, with revenue rising 85.5% year over year. Analysts remain broadly bullish, assigning the stock a “Moderate Buy” consensus rating and an average price target of $509.04.
• Despite strong AI-related growth expectations and a recently declared $0.65 quarterly dividend, Broadcom shares were down 4.8%; insiders sold 58,317 shares worth $22.7 million over the past quarter, highlighting valuation and execution concerns.

AlphaGrep UK Ltd bought a new stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm bought 1,906 shares of the semiconductor manufacturer's stock, valued at approximately $720,000.

A number of other hedge funds and other institutional investors have also recently made changes to their positions in AVGO. Networth Advisors LLC lifted its stake in 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 buying an additional 71 shares in the last quarter. Harborfront Financial Group LLC purchased a new stake in shares of Broadcom during the second quarter worth $38,000. Cherry Tree Wealth Management LLC grew its holdings in shares of Broadcom by 44.9% during the fourth 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 in the last quarter. Godfrey Financial Associates Inc. acquired a new stake in shares of Broadcom in the fourth quarter valued at about $56,000. Finally, IMG Wealth Management Inc. acquired a new stake in shares of Broadcom in the second quarter valued at about $64,000. Hedge funds and other institutional investors own 76.43% of the company's stock.

Insider Transactions at Broadcom

In related news, Director Gayla J. Delly sold 1,890 shares of the company's stock in a transaction that occurred on Wednesday, July 8th. The shares were sold at an average price of $385.38, for a total transaction of $728,368.20. Following the sale, the director directly owned 31,326 shares of the company's stock, valued at $12,072,413.88. This represents a 5.69% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 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 transaction of $10,033,250.00. Following the sale, the insider owned 194,989 shares in the company, valued at approximately $78,254,935.37. This trade represents a 11.36% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 58,317 shares of company stock valued at $22,745,733. 1.90% of the stock is currently owned by corporate insiders.

Key Headlines Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom remains a favored way to gain exposure to AI while receiving dividend income. Its custom AI-chip business is expected to continue expanding rapidly as hyperscalers and AI companies build additional computing capacity. 3 Stocks That Offer AI Exposure and Dividends
• Positive Sentiment: CEO Hock Tan reportedly said demand already exceeds Broadcom’s $115 billion AI forecast, with AI revenue projected to double in fiscal 2027 and again in 2028. Accelerating shipments of Ironwood chips to Anthropic could further strengthen Broadcom’s custom-hardware opportunity. Broadcom CEO Hock Tan Says Demand Already Exceeds Broadcom’s $115 Billion AI Forecast
• Positive Sentiment: Mizuho analyst Vijay Rakesh expects AVGO to rally toward a new all-time high over the next 12 months, supporting the longer-term bullish case despite recent weakness. Wall Street Sets Broadcom Stock Price for the Next 12 Months
• Neutral Sentiment: Analyst commentary remains divided: Broadcom is viewed as a major beneficiary of AI demand, but Vertiv is considered better positioned on valuation, earnings momentum and near-term upside. Vertiv vs. Broadcom: Which AI Infrastructure Stock Has More Upside?
• Negative Sentiment: Investors are questioning whether AI spending can maintain its current pace. Broadcom also faces concerns about elevated valuation, customer concentration, margins and execution, while reports cite a failure to meet Wall Street’s fiscal fourth-quarter revenue expectations. Marvell Falls as AI Pacing Debate Collides With Fed Week

Broadcom Stock Down 4.8%

Broadcom stock opened at $344.72 on Tuesday. Broadcom Inc. has a fifty-two week low of $289.96 and a fifty-two week high of $495.00. The company has a debt-to-equity ratio of 0.57, a quick ratio of 2.29 and a current ratio of 2.50. The firm has a 50 day moving average price of $382.45 and a 200 day moving average price of $378.79. The company has a market capitalization of $1.65 trillion, a PE ratio of 44.03 and a beta of 1.44.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.22 by $0.10. Broadcom had a return on equity of 48.33% and a net margin of 42.94%.The firm had revenue of $29.59 billion for the quarter, compared to analyst estimates of $29.24 billion. During the same quarter in the prior year, the company earned $1.69 EPS. Broadcom's revenue was up 85.5% on a year-over-year basis. Research analysts expect that Broadcom Inc. will post 10.36 earnings per share for the current year.

Broadcom Dividend Announcement

The firm also recently declared 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 annualized dividend and a dividend yield of 0.8%. The ex-dividend date of this dividend is Monday, September 21st. Broadcom's dividend payout ratio is currently 33.21%.

Wall Street Analyst Weigh In

AVGO has been the topic of a number of recent research reports. Fox Advisors upgraded shares of Broadcom to an "outperform" rating in a research report on Thursday, September 3rd. Lake Street Capital raised shares of Broadcom to a "buy" rating in a research note on Thursday, September 3rd. Susquehanna restated 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. Oppenheimer restated an "outperform" rating and issued a $535.00 price target (up from $450.00) on shares of Broadcom in a research report on Thursday, June 4th. Finally, Bank of America increased their price target on Broadcom from $450.00 to $530.00 and gave the company a "buy" rating in a report on Thursday, June 4th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating and four have given a Hold rating to the company's stock. According to MarketBeat, Broadcom currently has a consensus rating of "Moderate Buy" and a consensus target price of $509.04.

Broadcom Company Profile

Broadcom Inc NASDAQ: AVGO designs, develops and supplies semiconductor and infrastructure software products for businesses, telecommunications providers and other organizations worldwide. Its semiconductor portfolio includes networking and connectivity components, custom application-specific integrated circuits, broadband and wireless communications products, storage adapters, optical components, and industrial solutions.

The company also provides enterprise infrastructure software through businesses including VMware, which offers virtualization and private- and hybrid-cloud solutions; mainframe and enterprise software; and cybersecurity products.

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