Alta Advisers Ltd Purchases New Holdings in Broadcom Inc. $AVGO

Key Points

• Alta Advisers Ltd. purchased 18,279 Broadcom shares worth approximately $6.9 million in the second quarter, making AVGO its 12th-largest holding and about 1.6% of its portfolio.
• Broadcom reported quarterly revenue of $29.59 billion, up 85.5% year over year, while adjusted EPS of $3.32 exceeded estimates. AI semiconductor revenue surged 221% to $16.7 billion.
• Despite strong growth and a “Moderate Buy” consensus rating, Broadcom’s fourth-quarter revenue guidance of roughly $34.8 billion fell slightly below analyst expectations, while the stock traded at an elevated price-to-earnings ratio of about 61.

Alta Advisers Ltd purchased a new stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) in the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm purchased 18,279 shares of the semiconductor manufacturer's stock, valued at approximately $6,905,000. Broadcom makes up approximately 1.6% of Alta Advisers Ltd's investment portfolio, making the stock its 12th biggest holding.

Several other institutional investors have also recently made changes to their positions in AVGO. Cornerstone Advisors LLC purchased a new position in Broadcom in the second quarter worth $92,522,000. Bank of America Corp DE grew its stake in Broadcom by 1.5% in the 1st 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 purchasing an additional 894,564 shares during the period. Bartlett & CO. Wealth Management LLC increased its position in shares of Broadcom by 129.3% during the 1st quarter. Bartlett & CO. Wealth Management LLC now owns 110,048 shares of the semiconductor manufacturer's stock valued at $34,061,000 after purchasing an additional 62,050 shares during the last quarter. First Bank & Trust raised its stake in shares of Broadcom by 17.2% during the 2nd quarter. First Bank & Trust now owns 10,503 shares of the semiconductor manufacturer's stock worth $3,968,000 after purchasing an additional 1,545 shares during the period. Finally, Fifth Lane Capital LP boosted its holdings in shares of Broadcom by 77.8% in the 4th quarter. Fifth Lane Capital LP now owns 4,000 shares of the semiconductor manufacturer's stock worth $1,384,000 after buying an additional 1,750 shares during the last quarter. Institutional investors and hedge funds own 76.43% of the company's stock.

Broadcom Price Performance

NASDAQ AVGO opened at $367.24 on Thursday. The company has a quick ratio of 2.01, a current ratio of 2.24 and a debt-to-equity ratio of 0.71. The company has a market cap of $1.75 trillion, a PE ratio of 61.21, a price-to-earnings-growth ratio of 0.71 and a beta of 1.44. Broadcom Inc. has a 52 week low of $289.96 and a 52 week high of $495.00. The firm's 50-day simple moving average is $384.15 and its two-hundred day simple moving average is $377.14.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share for the quarter, topping the consensus estimate of $3.22 by $0.10. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The firm had revenue of $29.59 billion during the quarter, compared to the consensus estimate of $29.24 billion. During the same quarter last year, the company earned $1.69 earnings per share. The company's revenue was up 85.5% on a year-over-year basis. Research analysts predict that Broadcom Inc. will post 10.24 earnings per share for the current year.

Insider Buying and Selling at Broadcom

In other Broadcom news, Director Justine Page sold 1,602 shares of the stock in a transaction on Monday, June 29th. The stock was sold at an average price of $373.86, for a total transaction of $598,923.72. Following the sale, the director owned 17,426 shares in the company, valued at $6,514,884.36. This represents a 8.42% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Harry L. You purchased 1,000 shares of the business's stock in a transaction dated Thursday, June 11th. The stock was bought at an average cost of $373.57 per share, with a total value of $373,570.00. Following the completion of the acquisition, the director directly owned 38,466 shares of the company's stock, valued at approximately $14,369,743.62. This trade represents a 2.67% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders sold a total of 61,644 shares of company stock valued at $24,016,214 in the last quarter. Corporate insiders own 1.90% of the company's stock.

Wall Street Analyst Weigh In

A number of analysts recently issued reports on AVGO shares. Bank of America raised their price objective on shares of Broadcom from $450.00 to $530.00 and gave the stock a "buy" rating in a report on Thursday, June 4th. Susquehanna reiterated 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. Truist Financial increased their target price on shares of Broadcom from $545.00 to $550.00 and gave the company a "buy" rating in a research report on Thursday, June 4th. UBS Group set a $485.00 price target on shares of Broadcom and gave the stock a "buy" rating in a research note on Thursday, June 4th. Finally, Jefferies Financial Group set a $550.00 price target on shares of Broadcom and gave the stock a "buy" rating in a report on Thursday, June 4th. Twenty-nine analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $491.97.

Key Stories Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom reported fiscal third-quarter revenue of $29.59 billion, up 85.5% year over year, while non-GAAP EPS of $3.32 exceeded the $3.22 analyst consensus. GAAP profit rose sharply to $13.09 billion from $4.14 billion a year earlier. Broadcom third-quarter earnings report
• Positive Sentiment: AI semiconductor revenue reached $16.7 billion, increasing 221% year over year and 54% sequentially, highlighting strong demand for Broadcom’s custom AI accelerators. The company also generated $13.7 billion in free cash flow and declared a quarterly dividend of $0.65 per share. Broadcom AI semiconductor revenue and guidance
• Neutral Sentiment: Broadcom guided to approximately $34.8 billion in fourth-quarter revenue, representing 93% year-over-year growth, with non-GAAP operating margin of about 66%. The outlook still implies substantial growth, but management did not provide an EPS forecast in the reported guidance.
• Negative Sentiment: The fourth-quarter revenue forecast was below Wall Street expectations of roughly $35.0 billion to $35.03 billion. Investors viewed the shortfall as a sign that competition or execution risks could limit further gains from custom AI processors, particularly after the stock’s strong run and premium valuation. Reuters report on Broadcom guidance
• Negative Sentiment: Broadcom’s elevated valuation—approximately 61 times earnings—left little room for a merely solid outlook. Recent insider activity was also heavily weighted toward selling, although this is a secondary consideration compared with the earnings guidance.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.