Broadcom Inc. $AVGO Shares Bought by Second Line Capital LLC

Key Points

• Second Line Capital LLC increased its Broadcom stake by 239.5% in the second quarter, acquiring 7,010 additional shares for a total holding of 9,937 shares valued at approximately $3.75 million. Institutional investors collectively own 76.43% of the company.
• Broadcom exceeded quarterly expectations, reporting $3.32 in adjusted EPS and $29.59 billion in revenue; revenue rose 85.5% year over year, supported by strong AI-related demand.
• The company declared a quarterly dividend of $0.65 per share, equivalent to $2.60 annually and a 0.8% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $509.04, though valuation, macroeconomic conditions and customer concentration remain risks.

Second Line Capital LLC lifted its stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 239.5% in the second quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 9,937 shares of the semiconductor manufacturer's stock after buying an additional 7,010 shares during the quarter. Second Line Capital LLC's holdings in Broadcom were worth $3,754,000 at the end of the most recent reporting period.

Other large investors have also recently made changes to their positions in the company. Networth Advisors LLC lifted its position in shares of Broadcom by 546.2% during the 1st quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer's stock worth $26,000 after purchasing an additional 71 shares during the last quarter. Harborfront Financial Group LLC purchased a new position in Broadcom in the second quarter valued at $38,000. Cherry Tree Wealth Management LLC raised its stake in Broadcom by 44.9% in the fourth quarter. Cherry Tree Wealth Management LLC now owns 129 shares of the semiconductor manufacturer's stock valued at $45,000 after buying an additional 40 shares in the last quarter. Godfrey Financial Associates Inc. acquired a new stake in Broadcom in the fourth quarter valued at $56,000. Finally, Coppell Advisory Solutions LLC purchased a new stake in Broadcom during the 2nd quarter worth about $60,000. 76.43% of the stock is currently owned by hedge funds and other institutional investors.

Broadcom Stock Performance

Shares of AVGO opened at $339.51 on Thursday. The company's 50 day simple moving average is $380.83 and its 200-day simple moving average is $378.97. The firm has a market cap of $1.62 trillion, a PE ratio of 43.36 and a beta of 1.44. Broadcom Inc. has a 12-month low of $289.96 and a 12-month high of $495.00. The company has a current ratio of 2.50, a quick ratio of 2.29 and a debt-to-equity ratio of 0.57.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its quarterly earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 EPS for the quarter, beating the consensus estimate of $3.22 by $0.10. Broadcom had a net margin of 42.94% and a return on equity of 48.33%. The firm had revenue of $29.59 billion during the quarter, compared to the consensus estimate of $29.24 billion. During the same quarter in the prior year, the firm earned $1.69 EPS. Broadcom's revenue for the quarter was up 85.5% on a year-over-year basis. As a group, equities analysts predict that Broadcom Inc. will post 10.36 EPS for the current year.

Broadcom Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders 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 0.8%. The ex-dividend date is Monday, September 21st. Broadcom's dividend payout ratio (DPR) is 33.21%.

Broadcom News Roundup

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: CEO Hock Tan said Broadcom’s AI revenue targets have not changed despite calls from Anthropic and OpenAI executives to slow development of increasingly powerful models. The comments helped reinforce management’s confidence in sustained demand. Broadcom CEO delivers blunt verdict on AI’s biggest debate right now
• Positive Sentiment: Analysts and bullish commentators point to Broadcom’s 221% year-over-year AI revenue growth, strong guidance and potential for significant upside following the recent selloff. Several reports argue that the stock’s valuation is attractive relative to its growth and custom-chip competitors. Wall Street Sees 56% Upside in Broadcom After Summer Selloff
• Positive Sentiment: Broadcom’s reported supply constraint may be more significant than demand weakness. Piper Sandler estimated that demand for the company’s AI inference ASICs is roughly twice available supply and assigned an Overweight rating with a $460 price target. Broadcom’s Real Constraint Isn’t Demand. It’s Supply.
• Positive Sentiment: Recent coverage also cites new fourth-quarter revenue guidance, share-repurchase activity and continued dividend support as potential catalysts for shareholder returns. Broadcom Could Be 47% Below Fair Value
• Neutral Sentiment: Commentary remains divided: Broadcom’s earnings growth and AI exposure are viewed favorably, while valuation, macroeconomic conditions and customer concentration remain important risks for investors. Bull v. Bear: AVGO Shows Strong Earnings Growth, Macro Risks Weigh on Stock
• Negative Sentiment: Shares declined as Anthropic’s CEO called for a pause in rapidly scaling AI systems and OpenAI’s leadership expressed similar caution. Investors reassessed whether slower AI model development could reduce future orders for chips, networking equipment and custom accelerators. Broadcom Shares Fell As Slower AI Development Raised Demand Concerns
• Negative Sentiment: Bearish analysis highlights potential margin pressure, financing needs and regulatory concerns related to VMware, adding uncertainty despite Broadcom’s strong AI outlook. Broadcom’s strong AI growth faces margin, financing risks

Insider Buying and Selling at Broadcom

In related news, insider Mark Brazeal sold 25,000 shares of Broadcom 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 transaction, the insider directly owned 194,989 shares in the company, valued at $78,254,935.37. This trade represents a 11.36% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Justine Page sold 1,602 shares of the business's stock in a transaction on Monday, June 29th. The shares were sold at an average price of $373.86, for a total transaction of $598,923.72. Following the completion of the transaction, the director directly owned 17,426 shares in the company, valued at $6,514,884.36. This represents a 8.42% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 53,492 shares of company stock worth $20,840,292. 1.90% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on AVGO shares. The Goldman Sachs Group reiterated a "buy" rating on shares of Broadcom in a report on Monday, August 3rd. Benchmark upped their price target on Broadcom from $485.00 to $545.00 and gave the company a "buy" rating in a report on Thursday, June 4th. Lake Street Capital upgraded shares of Broadcom to a "buy" rating in a research note on Thursday, September 3rd. Citigroup restated a "buy" rating and set a $515.00 price objective (up from $500.00) on shares of Broadcom in a research report on Friday, September 4th. Finally, Deutsche Bank Aktiengesellschaft restated a "buy" rating and issued a $515.00 target price (up from $430.00) on shares of Broadcom in a report on Thursday, June 4th. One investment analyst has rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat.com, Broadcom presently has a consensus rating of "Moderate Buy" and a consensus target price of $509.04.

About Broadcom

Broadcom Inc NASDAQ: AVGO designs, develops and supplies semiconductor and infrastructure software products for businesses, telecommunications providers and other organizations worldwide. Its semiconductor portfolio includes networking and connectivity components, custom application-specific integrated circuits, broadband and wireless communications products, storage adapters, optical components, and industrial solutions.

The company also provides enterprise infrastructure software through businesses including VMware, which offers virtualization and private- and hybrid-cloud solutions; mainframe and enterprise software; and cybersecurity products.

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