AXQ Capital LP Takes $2.24 Million Position in Broadcom Inc. $AVGO

Key Points

• AXQ Capital LP opened a new Broadcom position in Q4, buying 6,462 shares worth about $2.24 million. The stake represents 0.5% of AXQ’s portfolio and its 18th-largest holding.
• Broadcom recently reported record quarterly revenue and beat earnings estimates, with Q2 EPS of $2.44 versus $2.40 expected and revenue of $22.19 billion, up 47.9% year over year. Management also said AI demand remains strong and reiterated a big long-term AI revenue outlook.
• Despite the strong results, the stock is under pressure after investors viewed the AI outlook as not bullish enough, and the shares fell sharply. Even so, several analysts remain constructive, with multiple firms raising price targets and keeping buy/overweight ratings.

AXQ Capital LP purchased a new position in Broadcom Inc. (NASDAQ:AVGO - Free Report) in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor purchased 6,462 shares of the semiconductor manufacturer's stock, valued at approximately $2,236,000. Broadcom makes up 0.5% of AXQ Capital LP's investment portfolio, making the stock its 18th largest holding.

Several other hedge funds have also recently added to or reduced their stakes in AVGO. Vanguard Group Inc. grew its stake in Broadcom by 0.8% during the fourth quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer's stock worth $167,064,997,000 after buying an additional 3,919,715 shares during the last quarter. Geode Capital Management LLC grew its stake in shares of Broadcom by 1.4% during the fourth quarter. Geode Capital Management LLC now owns 111,277,280 shares of the semiconductor manufacturer's stock valued at $38,396,634,000 after purchasing an additional 1,548,699 shares during the last quarter. Norges Bank bought a new position in Broadcom in the fourth quarter valued at approximately $24,252,196,000. Invesco Ltd. boosted its stake in Broadcom by 1.8% in the third quarter. Invesco Ltd. now owns 39,149,651 shares of the semiconductor manufacturer's stock valued at $12,915,861,000 after acquiring an additional 700,021 shares during the last quarter. Finally, Legal & General Group Plc boosted its stake in Broadcom by 2.3% in the third quarter. Legal & General Group Plc now owns 33,450,786 shares of the semiconductor manufacturer's stock valued at $11,035,749,000 after acquiring an additional 748,709 shares during the last quarter. Institutional investors and hedge funds own 76.43% of the company's stock.

Key Stories Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom posted record quarterly revenue, beat earnings estimates, and said AI semiconductor demand remains strong, supporting the long-term growth story. Broadcom Q2 Earnings Surpasses Estimates, Revenues Surge Y/Y
• Positive Sentiment: Several analysts remain bullish and raised price targets after the pullback, arguing the market is overreacting to expectations rather than fundamentals. Goldman Sachs urges investors to buy Broadcom dip with still AI revenue trajectory intact
• Positive Sentiment: Management still expects AI revenue to reach $56 billion in fiscal 2026 and more than $100 billion in fiscal 2027, keeping the longer-term AI thesis intact. AVGO Shares Drop 13% Post Q2 Results: Buy, Sell or Hold on the Dip?
• Neutral Sentiment: Broadcom also declared a quarterly dividend, which is supportive for income investors but not a major near-term stock driver.
• Negative Sentiment: The stock is under pressure because the AI outlook, while strong, was not upgraded enough to satisfy investors who had priced in an even bigger upside surprise. Broadcom's sales and AI chip forecast comes in below expectations, shares tumble
• Negative Sentiment: The disappointment has spilled over into the semiconductor sector, pressuring peers such as AMD, Intel, Micron, and Marvell as investors reassess AI trade valuations. Intel, AMD stocks slide again in aftermath of Broadcom's weak outlook

Insider Transactions at Broadcom

In other news, Director Gayla J. Delly sold 1,000 shares of the company's stock in a transaction dated Thursday, April 9th. The shares were sold at an average price of $358.31, for a total value of $358,310.00. Following the sale, the director directly owned 32,352 shares of the company's stock, valued at $11,592,045.12. This represents a 3.00% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Justine Page sold 2,018 shares of the company's stock in a transaction dated Wednesday, April 8th. The shares were sold at an average price of $353.00, for a total transaction of $712,354.00. Following the transaction, the director owned 18,164 shares in the company, valued at $6,411,892. This represents a 10.00% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 324,282 shares of company stock worth $106,425,249. Corporate insiders own 1.90% of the company's stock.

Broadcom Trading Down 7.9%

Shares of NASDAQ AVGO opened at $385.73 on Friday. Broadcom Inc. has a 52-week low of $241.11 and a 52-week high of $495.00. The company has a debt-to-equity ratio of 0.71, a quick ratio of 1.73 and a current ratio of 2.24. The firm has a 50 day moving average price of $396.22 and a two-hundred day moving average price of $361.90. The stock has a market cap of $1.83 trillion, a P/E ratio of 64.29, a price-to-earnings-growth ratio of 0.86 and a beta of 1.41.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its quarterly earnings data on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share for the quarter, beating analysts' consensus estimates of $2.40 by $0.04. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The firm had revenue of $22.19 billion for the quarter, compared to analyst estimates of $22.13 billion. During the same period last year, the firm earned $1.58 earnings per share. The business's quarterly revenue was up 47.9% compared to the same quarter last year. As a group, equities analysts forecast that Broadcom Inc. will post 9.97 EPS for the current year.

Broadcom Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Monday, June 22nd will be given a dividend of $0.65 per share. The ex-dividend date is Monday, June 22nd. This represents a $2.60 annualized dividend and a yield of 0.7%. Broadcom's payout ratio is presently 43.33%.

Analyst Ratings Changes

A number of research firms have recently commented on AVGO. Cantor Fitzgerald reaffirmed an "overweight" rating and set a $525.00 price target on shares of Broadcom in a research report on Thursday. JPMorgan Chase & Co. boosted their price objective on shares of Broadcom from $500.00 to $580.00 and gave the company an "overweight" rating in a research report on Thursday. Rosenblatt Securities reaffirmed a "buy" rating and issued a $500.00 price objective on shares of Broadcom in a research report on Thursday. Zacks Research cut Broadcom from a "strong-buy" rating to a "hold" rating in a research report on Thursday, May 21st. Finally, KeyCorp reaffirmed an "overweight" rating and set a $575.00 price objective (up from $500.00) on shares of Broadcom in a research report on Thursday. One research analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $490.13.

About Broadcom

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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