Caisse de depot et placement du Quebec Buys Shares of 1,826,045 Broadcom Inc. $AVGO

Key Points

• Caisse de dépôt et placement du Québec purchased 1.83 million Broadcom shares worth approximately $689.8 million, making AVGO about 1% of its portfolio. Institutional investors collectively own 76.43% of the stock.
• Broadcom exceeded quarterly expectations with EPS of $3.32 and revenue of $29.59 billion, up 85.5% year over year. However, its fourth-quarter revenue outlook slightly missed Wall Street estimates, raising concerns about margins and customer concentration.
• Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and a $500.60 price target. Broadcom also declared a quarterly dividend of $0.65 per share, while recent insider activity showed more selling than buying.

Caisse de depot et placement du Quebec purchased a new stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the SEC. The institutional investor purchased 1,826,045 shares of the semiconductor manufacturer's stock, valued at approximately $689,788,000. Broadcom comprises approximately 1.0% of Caisse de depot et placement du Quebec's investment portfolio, making the stock its 20th largest position.

A number of other hedge funds have also modified their holdings of AVGO. ROSS JOHNSON & Associates LLC lifted its position in Broadcom by 1,320.0% in the fourth quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer's stock valued at $25,000 after buying an additional 66 shares during the last quarter. SWAN Capital LLC boosted its stake in Broadcom by 261.9% during the fourth quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer's stock worth $26,000 after buying an additional 55 shares during the period. Networth Advisors LLC increased its position in shares of Broadcom by 546.2% during the first quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer's stock valued at $26,000 after acquiring an additional 71 shares during the last quarter. Harborfront Financial Group LLC purchased a new stake in shares of Broadcom in the 2nd quarter valued at approximately $38,000. Finally, Cherry Tree Wealth Management LLC raised its stake in shares of Broadcom by 44.9% in the 4th quarter. Cherry Tree Wealth Management LLC now owns 129 shares of the semiconductor manufacturer's stock valued at $45,000 after acquiring an additional 40 shares during the period. 76.43% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity

In related news, Director Justine Page sold 1,602 shares of Broadcom stock in a transaction that occurred on Monday, June 29th. The shares were sold at an average price of $373.86, for a total value of $598,923.72. Following the completion of the transaction, the director owned 17,426 shares in the company, valued at $6,514,884.36. The trade was a 8.42% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Harry L. You purchased 1,000 shares of the stock in a transaction on Thursday, June 11th. The shares were purchased at an average price of $373.57 per share, with a total value of $373,570.00. Following the acquisition, 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 disclosure for this purchase is available in the SEC filing. Insiders sold 61,644 shares of company stock worth $24,016,214 in the last ninety days. 1.90% of the stock is owned by insiders.

Broadcom Trading Up 0.2%

AVGO opened at $357.89 on Friday. The business has a fifty day moving average price of $383.57 and a 200 day moving average price of $377.23. The company has a debt-to-equity ratio of 0.57, a current ratio of 2.50 and a quick ratio of 2.01. Broadcom Inc. has a 12 month low of $289.96 and a 12 month high of $495.00. The stock has a market capitalization of $1.70 trillion, a price-to-earnings ratio of 45.71, a PEG ratio of 0.68 and a beta of 1.44.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its quarterly earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.22 by $0.10. The company had revenue of $29.59 billion for the quarter, compared to analyst estimates of $29.24 billion. Broadcom had a return on equity of 48.33% and a net margin of 42.94%.Broadcom's revenue for the quarter was up 85.5% compared to the same quarter last year. During the same quarter last year, the company earned $1.69 EPS. Sell-side analysts expect that Broadcom Inc. will post 10.25 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Monday, September 21st will be paid a dividend of $0.65 per share. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date is Monday, September 21st. Broadcom's dividend payout ratio is presently 33.21%.

Wall Street Analyst Weigh In

Several brokerages have recently commented on AVGO. TD Cowen restated a "buy" rating and issued a $475.00 price objective (down from $500.00) on shares of Broadcom in a report on Thursday. KeyCorp reiterated an "overweight" rating and issued a $575.00 target price on shares of Broadcom in a report on Thursday. Wells Fargo & Company restated an "overweight" rating and set a $545.00 price target (up from $430.00) on shares of Broadcom in a research note on Thursday, May 14th. JPMorgan Chase & Co. upped their price target on Broadcom from $500.00 to $580.00 and gave the stock an "overweight" rating in a research note on Thursday, June 4th. Finally, Lake Street Capital upgraded Broadcom to a "buy" rating in a research report on Thursday. Thirty-one research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $500.60.

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.

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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