Bamco Inc. NY Lowers Position in Broadcom Inc. $AVGO

Key Points

• Bamco Inc. NY reduced its Broadcom position by 1.7% in the second quarter, selling 8,683 shares and retaining 514,536 shares valued at approximately $194.4 million. Institutional investors collectively own 76.43% of Broadcom.
• Broadcom reported quarterly adjusted EPS of $3.32 and revenue of $29.59 billion, exceeding analyst expectations, while revenue rose 85.5% year over year. The company declared a quarterly dividend of $0.65 per share, representing a 0.7% yield.
• Analyst sentiment remains broadly positive, with 31 Buy ratings and four Holds and an average price target of $500.60, although concerns include elevated valuation, customer concentration, margin pressure and fourth-quarter guidance slightly below Wall Street expectations.

Bamco Inc. NY trimmed its holdings in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 1.7% during the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 514,536 shares of the semiconductor manufacturer's stock after selling 8,683 shares during the period. Bamco Inc. NY's holdings in Broadcom were worth $194,366,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other large investors have also modified their holdings of the business. Bank of America Corp DE boosted its stake in shares of Broadcom by 4.6% during the second quarter. Bank of America Corp DE now owns 61,423,013 shares of the semiconductor manufacturer's stock valued at $23,202,543,000 after purchasing an additional 2,685,916 shares in the last quarter. Magnolia Capital Advisors LLC purchased a new stake in Broadcom during the second quarter worth $5,532,000. Arini Capital Management Ltd bought a new stake in Broadcom during the 2nd quarter valued at $7,555,000. Strategic Global Advisors LLC bought a new stake in Broadcom during the 2nd quarter valued at $27,247,000. Finally, Port Capital LLC purchased a new position in shares of Broadcom in the 2nd quarter valued at $201,000. Institutional investors own 76.43% of the company's stock.

Broadcom Stock Performance

AVGO opened at $357.89 on Monday. Broadcom Inc. has a 52-week low of $289.96 and a 52-week high of $495.00. The company has a quick ratio of 2.29, a current ratio of 2.50 and a debt-to-equity ratio of 0.57. The company has a market cap of $1.70 trillion, a P/E ratio of 45.71 and a beta of 1.44. The firm's 50-day moving average price is $383.57 and its 200-day moving average price is $377.59.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 EPS for the quarter, topping analysts' consensus estimates of $3.22 by $0.10. The company had revenue of $29.59 billion during the quarter, compared to analysts' expectations of $29.24 billion. Broadcom had a net margin of 42.94% and a return on equity of 48.33%. Broadcom's revenue for the quarter was up 85.5% on a year-over-year basis. During the same period last year, the business earned $1.69 EPS. As a group, equities analysts anticipate that Broadcom Inc. will post 10.25 EPS for the current fiscal year.

Broadcom Dividend Announcement

The business also recently disclosed 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. The ex-dividend date of this dividend is Monday, September 21st. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.7%. Broadcom's payout ratio is 33.21%.

Insider Transactions at Broadcom

In other news, Director Harry You purchased 1,000 shares of the company's stock in a transaction on Thursday, June 11th. The shares were acquired at an average price of $373.57 per share, for a total transaction of $373,570.00. Following the purchase, the director owned 38,466 shares in the company, valued at $14,369,743.62. This trade represents a 2.67% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Gayla J. Delly sold 1,890 shares of the stock in a transaction dated Wednesday, July 8th. The shares were sold at an average price of $385.38, for a total value of $728,368.20. Following the completion of the transaction, the director directly owned 31,326 shares in the company, valued at $12,072,413.88. This represents a 5.69% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 61,644 shares of company stock valued at $24,016,214 in the last quarter. Insiders own 1.90% of the company's stock.

Key Stories Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Investor interest in Broadcom’s AI opportunity remains strong. AI semiconductor revenue surged 221% year over year to $16.7 billion, while management raised its AI revenue outlook to approximately $115 billion for fiscal 2027 and $230 billion for fiscal 2028. Several analysts and commentators view the selloff as a buying opportunity. The Path to $230 Billion: Broadcom Outlines the Next Phase of Its AI Growth Story
• Positive Sentiment: Analysts continue to see substantial upside despite some target reductions. Truist maintained a buy rating with a $520 target, while other firms cited targets ranging from $575 to $600. Macquarie upgraded Broadcom to Outperform, citing strong custom-chip growth and reduced concerns about customers developing chips internally. These Analysts Increase Their Forecasts On Broadcom Following Upbeat Q3 Earnings
• Positive Sentiment: Unusual options activity provided another bullish trading signal: investors purchased roughly 373,000 call options, about 26% above average call volume. Broadcom also declared a quarterly dividend of $0.65 per share, payable September 30 to eligible shareholders.
• Neutral Sentiment: Broadcom beat quarterly expectations with adjusted earnings of $3.32 per share versus a $3.22 consensus and revenue of $29.59 billion. The company’s long-term AI demand commentary was strong, but investors are focused on whether supply, power, land and data-center construction constraints can limit near-term shipments. Broadcom CEO Says AI Demand Could Be Significantly Higher
• Negative Sentiment: The main pressure remains Broadcom’s fourth-quarter revenue outlook of $34.8 billion, slightly below Wall Street’s roughly $35.0 billion expectation. The modest guidance miss, concerns about margin compression and customer concentration—including major AI customers—caused the initial sell-the-news reaction despite excellent AI growth.
• Negative Sentiment: Third Point disclosed that it exited its remaining Broadcom position during the second quarter. Although the holding was relatively small, the sale adds to caution around elevated valuation and expectations for the AI-chip cycle.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on the company. Wall Street Zen lowered Broadcom from a "strong-buy" rating to a "buy" rating in a research report on Saturday, July 18th. Erste Group Bank reiterated a "hold" rating on shares of Broadcom in a report on Tuesday, July 7th. Morgan Stanley reissued an "overweight" rating and set a $505.00 price target (up from $502.00) on shares of Broadcom in a research report on Thursday. Cantor Fitzgerald lifted their price objective on shares of Broadcom from $525.00 to $600.00 and gave the stock an "overweight" rating in a research report on Thursday. Finally, Citigroup reiterated a "buy" rating and set a $515.00 price objective (up from $500.00) on shares of Broadcom in a research note on Friday. Thirty-one research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $500.60.

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.

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.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source