Broadcom Inc. $AVGO is Empowered Funds LLC's 5th Largest Position

Key Points

• Empowered Funds LLC increased its Broadcom position by 64.9% in the first quarter to 699,504 shares valued at approximately $216.5 million, making AVGO the fund’s fifth-largest holding. Institutional investors collectively own 76.43% of the company.
• Broadcom reported quarterly EPS of $2.44 and revenue of $22.19 billion, with revenue rising 47.9% year over year. Strong AI demand remains a key catalyst, including AI semiconductor revenue of $10.8 billion, up 143% year over year.
• Analysts maintain a favorable outlook, with a consensus “Moderate Buy” rating and average price target of $493.24, but the stock’s elevated valuation and approximately $24 million in insider sales over the past 90 days present potential risks.

Empowered Funds LLC boosted its position in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 64.9% during the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 699,504 shares of the semiconductor manufacturer's stock after acquiring an additional 275,197 shares during the period. Broadcom accounts for 1.4% of Empowered Funds LLC's investment portfolio, making the stock its 5th biggest position. Empowered Funds LLC's holdings in Broadcom were worth $216,503,000 at the end of the most recent reporting period.

Other hedge funds have also recently modified their holdings of the company. Evelyn Partners Investment Management LLP lifted its holdings in Broadcom by 118.1% in the 1st quarter. Evelyn Partners Investment Management LLP now owns 59,969 shares of the semiconductor manufacturer's stock worth $18,561,000 after buying an additional 32,470 shares during the period. Evelyn Partners Investment Management Services Ltd grew its position in shares of Broadcom by 80.2% in the 1st quarter. Evelyn Partners Investment Management Services Ltd now owns 15,630 shares of the semiconductor manufacturer's stock worth $4,838,000 after buying an additional 6,955 shares during the last quarter. The Manufacturers Life Insurance Company grew its position in shares of Broadcom by 21.2% in the 1st quarter. The Manufacturers Life Insurance Company now owns 5,310,766 shares of the semiconductor manufacturer's stock worth $1,643,640,000 after buying an additional 928,806 shares during the last quarter. Estuary Capital Management LP increased its stake in shares of Broadcom by 1.6% during the first quarter. Estuary Capital Management LP now owns 106,420 shares of the semiconductor manufacturer's stock valued at $32,938,000 after buying an additional 1,660 shares during the period. Finally, KCM Investment Advisors LLC increased its stake in shares of Broadcom by 4.4% during the first quarter. KCM Investment Advisors LLC now owns 62,058 shares of the semiconductor manufacturer's stock valued at $19,208,000 after buying an additional 2,598 shares during the period. Hedge funds and other institutional investors own 76.43% of the company's stock.

Insider Buying and Selling at Broadcom

In related news, insider Mark David Brazeal sold 25,000 shares of the business's stock in a transaction dated Friday, July 10th. The shares were 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 of the company's stock, valued at $78,254,935.37. The trade was a 11.36% 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 Justine Page sold 1,602 shares of the company's stock in a transaction dated Monday, June 29th. The stock was sold at an average price of $373.86, for a total transaction of $598,923.72. Following the completion of the sale, the director owned 17,426 shares in the company, valued at approximately $6,514,884.36. This trade represents a 8.42% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 61,644 shares of company stock valued at $24,016,214. Insiders own 1.90% of the company's stock.

Broadcom Trading Up 0.0%

NASDAQ AVGO opened at $418.28 on Thursday. The firm has a market capitalization of $1.99 trillion, a PE ratio of 69.71, a P/E/G ratio of 0.80 and a beta of 1.45. The stock's 50 day moving average is $393.49 and its 200 day moving average is $369.56. Broadcom Inc. has a twelve month low of $281.87 and a twelve month high of $495.00. The company has a quick ratio of 2.01, a current ratio of 2.24 and a debt-to-equity ratio of 0.71.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its quarterly earnings data on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.40 by $0.04. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.The business had revenue of $22.19 billion during the quarter, compared to the consensus estimate of $22.13 billion. During the same quarter in the prior year, the company earned $1.58 earnings per share. The firm's quarterly revenue was up 47.9% compared to the same quarter last year. Research analysts forecast that Broadcom Inc. will post 10.24 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 22nd were given a dividend of $0.65 per share. This represents a $2.60 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date of this dividend was Monday, June 22nd. Broadcom's dividend payout ratio (DPR) is 43.33%.

Analyst Ratings Changes

A number of analysts recently commented on AVGO shares. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and issued a $515.00 price target (up from $430.00) on shares of Broadcom in a research note on Thursday, June 4th. TD Cowen reissued a "buy" rating and set a $500.00 price objective on shares of Broadcom in a research report on Thursday, June 4th. Erste Group Bank restated a "hold" rating on shares of Broadcom in a report on Tuesday, July 7th. Royal Bank Of Canada raised their target price on shares of Broadcom from $360.00 to $400.00 and gave the stock a "sector perform" rating in a research report on Thursday, June 4th. Finally, Benchmark lifted their target price on shares of Broadcom from $485.00 to $545.00 and gave the company a "buy" rating in a research note on Thursday, June 4th. Twenty-eight 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 $493.24.

Key Headlines Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s strong AI exposure remains the primary catalyst. Its latest quarterly results showed AI semiconductor revenue of $10.8 billion, up 143% year over year, while management maintained its expectation for AI semiconductor revenue to exceed $100 billion in fiscal 2027. Investors are also focused on Broadcom’s custom-chip relationships with major cloud customers, including Google and OpenAI. Broadcom custom AI chips article
• Positive Sentiment: A broad semiconductor rally, record industry sales and renewed risk appetite are lifting AVGO alongside AMD, Marvell and Micron. Analysts and market commentators increasingly describe Broadcom as one of Nvidia’s most significant competitors in data-center silicon because of its custom AI accelerators and high-speed networking portfolio. Semiconductor rally article
• Positive Sentiment: Potential U.S. restrictions on Chinese optical-transceiver imports could create additional demand for Broadcom’s networking chips and digital-signal-processing components as data centers seek Western alternatives. The company’s optical and connectivity technologies may become more strategically important as AI clusters migrate toward 800G and 1.6T architectures. AI infrastructure and optical supply chain article
• Neutral Sentiment: Analyst sentiment is favorable, with recent Buy ratings and a median price target of about $525, but targets vary widely. This optimism is balanced by AVGO’s elevated valuation, making the stock more sensitive to any slowdown in AI spending or weaker guidance.
• Negative Sentiment: A possible ban on Chinese AI-related components could increase costs, constrain optical-transceiver supply and delay hyperscaler data-center deployments. Broadcom could benefit from substitution demand, but it could also face near-term disruption across an interconnected supply chain. China AI component ban article
• Negative Sentiment: Reported insider activity has been overwhelmingly weighted toward sales, which may raise caution after the recent advance, although institutional ownership remains mixed rather than uniformly negative.

Broadcom 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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