Broadcom Inc. $AVGO is Pathway Wealth Management LLC's 3rd Largest Position

Key Points

• Pathway Wealth Management reduced its Broadcom stake by 7.6% in the second quarter, but Broadcom remains its third-largest holding at 11.8% of the portfolio, valued at approximately $16.9 million.
• Broadcom’s latest quarter exceeded expectations, with EPS of $2.44 and revenue of $22.19 billion, up 47.9% year over year. Investor interest remains focused on the company’s exposure to AI infrastructure, custom chips and high-speed networking.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and an average price target of $493.24, although Broadcom’s high valuation and rising competition in custom AI silicon remain key risks.

Pathway Wealth Management LLC reduced its position in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 7.6% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 44,766 shares of the semiconductor manufacturer's stock after selling 3,675 shares during the period. Broadcom comprises about 11.8% of Pathway Wealth Management LLC's portfolio, making the stock its 3rd biggest holding. Pathway Wealth Management LLC's holdings in Broadcom were worth $16,910,000 at the end of the most recent reporting period.

A number of other hedge funds have also recently added to or reduced their stakes in AVGO. Global Financial Private Client LLC grew its position in Broadcom by 5.6% during the second quarter. Global Financial Private Client LLC now owns 1,829 shares of the semiconductor manufacturer's stock valued at $691,000 after buying an additional 97 shares during the period. Thomasville National Bank purchased a new position in Broadcom in the second quarter valued at $2,549,000. Sterling Investment Counsel LLC raised its position in shares of Broadcom by 4.5% in the second quarter. Sterling Investment Counsel LLC now owns 6,815 shares of the semiconductor manufacturer's stock worth $2,574,000 after acquiring an additional 292 shares during the period. Ticino Wealth boosted its stake in shares of Broadcom by 9.3% during the 2nd quarter. Ticino Wealth now owns 7,067 shares of the semiconductor manufacturer's stock worth $2,670,000 after acquiring an additional 604 shares in the last quarter. Finally, Clarity Financial LLC boosted its stake in shares of Broadcom by 2,422.3% during the 2nd quarter. Clarity Financial LLC now owns 62,704 shares of the semiconductor manufacturer's stock worth $23,687,000 after acquiring an additional 60,218 shares in the last quarter. 76.43% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling at Broadcom

In other news, Director Gayla J. Delly sold 1,890 shares of Broadcom stock in a transaction on Wednesday, July 8th. The stock was sold at an average price of $385.38, for a total transaction of $728,368.20. Following the transaction, the director owned 31,326 shares in the company, valued at $12,072,413.88. The trade was a 5.69% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Harry L. You bought 1,000 shares of Broadcom stock in a transaction on Thursday, June 11th. The shares were purchased at an average cost of $373.57 per share, for a total transaction of $373,570.00. Following the completion of the purchase, the director directly owned 38,466 shares of the company's stock, valued at $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 have sold a total of 61,644 shares of company stock worth $24,016,214 in the last quarter. Insiders own 1.90% of the company's stock.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom and NVIDIA’s efforts to raise debt and private capital to fund AI infrastructure underscore the scale of expected demand for computing capacity, potentially supporting Broadcom’s custom-chip and networking businesses. Nvidia and Broadcom Deepen AI Financing Push — But Wolfe Sees Long-Term Risks
• Positive Sentiment: Recent earnings commentary highlights optics and high-speed networking as increasingly important parts of the AI buildout, areas where Broadcom is positioned to benefit from hyperscale customer spending. Lumentum and Broadcom: Both Have Seen the Light in AI But How Should Investors Play Them?
• Positive Sentiment: Analysts and investors continue to focus on surging AI-networking demand, Broadcom’s accelerator programs and its ability to benefit regardless of which AI chip architecture ultimately becomes dominant. Is Broadcom in Focus as AI Networking Demand Surges?
• Positive Sentiment: Institutional buying provided an additional confidence signal: GAMCO Investors added 6,223 shares, while Bowie Capital previously increased its position by 112,599 shares. Cathie Wood also reportedly purchased approximately $16.2 million of AVGO. GAMCO Investors Boosts Broadcom Stake
• Neutral Sentiment: Broadcom remains a major beneficiary of the broader AI investment theme, with investors increasingly seeking exposure to the ecosystem and supply chain rather than concentrating only in individual chip stocks. The Future of AI Investing: Harbor Debuts 5 New Ecosystem ETFs
• Negative Sentiment: Valuation remains a key concern. Broadcom has delivered roughly an 8.7-fold five-year return, while current earnings multiples are viewed as expensive and a discounted-cash-flow estimate is near the market value, leaving less room for execution disappointments. Broadcom Stock Trades Near Fair Value but at a Premium on Earnings
• Negative Sentiment: Wolfe Research sees longer-term risks from intensifying competition in custom AI silicon, while other market observers warn that semiconductor flows and enthusiasm could be approaching a cyclical peak. Semiconductor Flows Stay Sticky Despite Cycle-Peak Warning

Analysts Set New Price Targets

Several equities analysts recently weighed in on AVGO shares. Zacks Research lowered Broadcom from a "strong-buy" rating to a "hold" rating in a research note on Thursday, May 21st. Truist Financial increased their price target on Broadcom from $545.00 to $550.00 and gave the stock a "buy" rating in a research report on Thursday, June 4th. Cantor Fitzgerald restated an "overweight" rating and issued a $525.00 price objective on shares of Broadcom in a research report on Thursday, June 4th. Erste Group Bank reaffirmed a "hold" rating on shares of Broadcom in a research note on Tuesday, July 7th. Finally, Royal Bank Of Canada increased their target price on Broadcom from $360.00 to $400.00 and gave the company a "sector perform" rating in a research report on Thursday, June 4th. Twenty-eight equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat, Broadcom presently has a consensus rating of "Moderate Buy" and an average target price of $493.24.

Broadcom Trading Up 0.4%

Shares of Broadcom stock opened at $417.82 on Friday. The firm has a market capitalization of $1.99 trillion, a PE ratio of 69.64, a P/E/G ratio of 0.79 and a beta of 1.45. Broadcom Inc. has a twelve month low of $281.87 and a twelve month high of $495.00. The firm's 50-day moving average price is $389.65 and its 200 day moving average price is $373.16. The company has a current ratio of 2.24, a quick ratio of 2.01 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 EPS for the quarter, topping the consensus estimate of $2.40 by $0.04. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.The company had revenue of $22.19 billion during the quarter, compared to analyst estimates of $22.13 billion. During the same period in the previous year, the business earned $1.58 EPS. Broadcom's quarterly revenue was up 47.9% on a year-over-year basis. On average, sell-side analysts predict that Broadcom Inc. will post 10.24 EPS for the current fiscal year.

Broadcom Announces Dividend

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

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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