Broadcom Inc. $AVGO Shares Purchased by Allen Investment Management LLC

Key Points

• Allen Investment Management LLC increased its Broadcom stake by 2.6% in the fourth quarter, adding 9,236 shares to reach 359,340 shares valued at about $124.4 million.
• Broadcom’s latest quarterly results were strong, with EPS of $2.44 beating estimates and revenue rising 47.9% year over year to $22.19 billion, helped by continued AI semiconductor demand.
• Despite the upbeat fundamentals, the stock has faced pressure because investors wanted an even bigger AI outlook upgrade; analysts still remain mostly bullish with a Moderate Buy consensus and an average price target of $490.13.

Allen Investment Management LLC boosted its stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 2.6% in the 4th quarter, according to its most recent filing with the SEC. The fund owned 359,340 shares of the semiconductor manufacturer's stock after purchasing an additional 9,236 shares during the period. Broadcom comprises approximately 1.4% of Allen Investment Management LLC's portfolio, making the stock its 20th largest position. Allen Investment Management LLC's holdings in Broadcom were worth $124,368,000 at the end of the most recent reporting period.

Several other institutional investors have also recently added to or reduced their stakes in the stock. Vanguard Group Inc. increased its holdings in Broadcom by 0.8% in the 4th quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer's stock valued at $167,064,997,000 after purchasing an additional 3,919,715 shares during the last quarter. Geode Capital Management LLC increased its holdings in Broadcom by 1.4% in the 4th quarter. Geode Capital Management LLC now owns 111,277,280 shares of the semiconductor manufacturer's stock valued at $38,396,634,000 after purchasing an additional 1,548,699 shares during the last quarter. Norges Bank acquired a new stake in Broadcom in the 4th quarter valued at approximately $24,252,196,000. Invesco Ltd. increased its holdings in Broadcom by 1.8% in the 3rd quarter. Invesco Ltd. now owns 39,149,651 shares of the semiconductor manufacturer's stock valued at $12,915,861,000 after purchasing an additional 700,021 shares during the last quarter. Finally, Legal & General Group Plc increased its holdings in Broadcom by 2.3% in the 3rd quarter. Legal & General Group Plc now owns 33,450,786 shares of the semiconductor manufacturer's stock valued at $11,035,749,000 after purchasing an additional 748,709 shares during the last quarter. Institutional investors and hedge funds own 76.43% of the company's stock.

Key Stories Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom posted record quarterly revenue, beat earnings estimates, and said AI semiconductor demand remains strong, supporting the long-term growth story. Broadcom Q2 Earnings Surpasses Estimates, Revenues Surge Y/Y
• Positive Sentiment: Several analysts remain bullish and raised price targets after the pullback, arguing the market is overreacting to expectations rather than fundamentals. Goldman Sachs urges investors to buy Broadcom dip with still AI revenue trajectory intact
• Positive Sentiment: Management still expects AI revenue to reach $56 billion in fiscal 2026 and more than $100 billion in fiscal 2027, keeping the longer-term AI thesis intact. AVGO Shares Drop 13% Post Q2 Results: Buy, Sell or Hold on the Dip?
• Neutral Sentiment: Broadcom also declared a quarterly dividend, which is supportive for income investors but not a major near-term stock driver.
• Negative Sentiment: The stock is under pressure because the AI outlook, while strong, was not upgraded enough to satisfy investors who had priced in an even bigger upside surprise. Broadcom's sales and AI chip forecast comes in below expectations, shares tumble
• Negative Sentiment: The disappointment has spilled over into the semiconductor sector, pressuring peers such as AMD, Intel, Micron, and Marvell as investors reassess AI trade valuations. Intel, AMD stocks slide again in aftermath of Broadcom's weak outlook

Insider Buying and Selling at Broadcom

In other news, insider S. Ram Velaga sold 8,000 shares of the stock in a transaction dated Friday, April 10th. The shares were sold at an average price of $370.52, for a total transaction of $2,964,160.00. Following the completion of the sale, the insider owned 57,932 shares in the company, valued at approximately $21,464,964.64. This represents a 12.13% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Mark David Brazeal sold 50,488 shares of the stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $321.60, for a total transaction of $16,236,940.80. Following the sale, the insider owned 278,141 shares of the company's stock, valued at $89,450,145.60. This trade represents a 15.36% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 324,282 shares of company stock valued at $106,425,249. Corporate insiders own 1.90% of the company's stock.

Wall Street Analysts Forecast Growth

AVGO has been the subject of several research reports. Cantor Fitzgerald reiterated an "overweight" rating and issued a $525.00 target price on shares of Broadcom in a report on Thursday. Zacks Research downgraded shares of Broadcom from a "strong-buy" rating to a "hold" rating in a research note on Thursday, May 21st. KeyCorp restated an "overweight" rating and issued a $575.00 price target (up from $500.00) on shares of Broadcom in a research note on Thursday. Truist Financial boosted their price target on shares of Broadcom from $545.00 to $550.00 and gave the stock a "buy" rating in a research note on Thursday. Finally, Bank of America boosted their price target on shares of Broadcom from $450.00 to $530.00 and gave the stock a "buy" rating in a research note on Thursday. One analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, Broadcom currently has a consensus rating of "Moderate Buy" and an average price target of $490.13.

Broadcom Stock Performance

NASDAQ AVGO opened at $385.73 on Friday. The company has a debt-to-equity ratio of 0.71, a current ratio of 2.24 and a quick ratio of 1.73. Broadcom Inc. has a 1 year low of $241.11 and a 1 year high of $495.00. The company has a market capitalization of $1.83 trillion, a PE ratio of 64.29, a P/E/G ratio of 0.86 and a beta of 1.41. The company has a fifty day moving average of $396.22 and a two-hundred day moving average of $361.90.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its quarterly earnings data on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.40 by $0.04. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The company 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 firm posted $1.58 earnings per share. Broadcom's revenue for the quarter was up 47.9% on a year-over-year basis. As a group, analysts expect that Broadcom Inc. will post 9.97 earnings per share for the current year.

Broadcom Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Monday, June 22nd will be paid a dividend of $0.65 per share. The ex-dividend date is Monday, June 22nd. This represents a $2.60 annualized dividend and a dividend yield of 0.7%. Broadcom's dividend payout ratio is 43.33%.

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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