Bristol Gate Capital Partners Inc. Buys Shares of 148,085 Broadcom Inc. $AVGO

Key Points

• Bristol Gate Capital Partners acquired 148,085 Broadcom shares worth approximately $55.9 million, while other institutional investors also initiated sizable positions. Institutional investors and hedge funds collectively own 76.43% of Broadcom.
• Broadcom exceeded quarterly expectations with adjusted EPS of $3.32 and revenue of $29.59 billion, up 85.5% year over year. AI semiconductor revenue surged 221%, though fourth-quarter guidance slightly missed estimates and raised concerns about margins, customer concentration, and deployment constraints.
• Analyst sentiment remains broadly positive, with 31 Buy ratings and a consensus “Moderate Buy” rating tied to an average price target of $500.60. Broadcom also declared a quarterly dividend of $0.65 per share, representing a 0.7% yield.

Bristol Gate Capital Partners Inc. purchased a new position in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) in the 2nd quarter, according to the company in its most recent filing with the SEC. The institutional investor purchased 148,085 shares of the semiconductor manufacturer's stock, valued at approximately $55,940,000. Broadcom makes up approximately 3.9% of Bristol Gate Capital Partners Inc.'s portfolio, making the stock its 21st biggest position.

A number of other hedge funds have also made changes to their positions in AVGO. ABS Investment Management LLC bought a new position in shares of Broadcom in the 2nd quarter valued at approximately $967,040,000. EFG International AG bought a new stake in Broadcom during the second quarter worth approximately $132,482,000. Delos Wealth Advisors LLC bought a new stake in Broadcom during the second quarter worth approximately $1,156,000. Primecap Management Co. CA acquired a new position in Broadcom during the second quarter valued at approximately $278,316,000. Finally, PDT Partners LLC acquired a new position in Broadcom during the second quarter valued at approximately $5,742,000. Institutional investors and hedge funds own 76.43% of the company's stock.

Insider Buying and Selling

In related news, Director Harry You purchased 1,000 shares of the firm's stock in a transaction that occurred on Thursday, June 11th. The shares were acquired at an average price of $373.57 per share, with a total value of $373,570.00. Following the purchase, the director directly owned 38,466 shares in the company, valued at $14,369,743.62. This represents a 2.67% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, insider Mark Brazeal sold 25,000 shares of the company's stock in a transaction on Friday, July 10th. The shares were sold at an average price of $401.33, for a total value of $10,033,250.00. Following the completion of the sale, the insider owned 194,989 shares in the company, valued at $78,254,935.37. This trade represents a 11.36% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 61,644 shares of company stock valued at $24,016,214. 1.90% of the stock is currently owned by company insiders.

Broadcom Price Performance

Shares of Broadcom stock opened at $357.89 on Friday. The company has a debt-to-equity ratio of 0.57, a quick ratio of 2.01 and a current ratio of 2.50. The firm's 50-day simple moving average is $383.57 and its 200-day simple moving average is $377.23. Broadcom Inc. has a twelve month low of $289.96 and a twelve month high of $495.00. The firm has a market cap of $1.70 trillion, a P/E ratio of 45.71, a price-to-earnings-growth ratio of 0.68 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 for the quarter, beating analysts' consensus estimates of $3.22 by $0.10. Broadcom had a net margin of 42.94% and a return on equity of 48.33%. The business had revenue of $29.59 billion for the quarter, compared to analysts' expectations of $29.24 billion. During the same quarter in the previous year, the firm posted $1.69 earnings per share. The firm's revenue for the quarter was up 85.5% on a year-over-year basis. As a group, research analysts expect that Broadcom Inc. will post 10.25 EPS for the current fiscal year.

Broadcom Announces Dividend

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 paid a $0.65 dividend. This represents a $2.60 annualized dividend and a dividend yield of 0.7%. The ex-dividend date is Monday, September 21st. Broadcom's dividend payout ratio is currently 33.21%.

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 Ratings Changes

A number of analysts have recently weighed in on the stock. Weiss Ratings cut shares of Broadcom from a "buy (b)" rating to a "buy (b-)" rating in a research note on Thursday, July 30th. Rosenblatt Securities initiated coverage on shares of Broadcom in a research note on Thursday. They issued a "buy" rating and a $600.00 target price on the stock. Truist Financial dropped their target price on shares of Broadcom from $550.00 to $520.00 and set a "buy" rating on the stock in a report on Thursday. Wall Street Zen lowered shares of Broadcom from a "strong-buy" rating to a "buy" rating in a research report on Saturday, July 18th. Finally, Deutsche Bank Aktiengesellschaft reissued a "buy" rating and set a $515.00 target price (up from $430.00) on shares of Broadcom in a research report on Thursday, June 4th. Thirty-one analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat, Broadcom currently has a consensus rating of "Moderate Buy" and an average target price of $500.60.

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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