Clal Insurance Enterprises Holdings Ltd Buys New Position in Broadcom Inc. $AVGO

Key Points

• Clal Insurance Enterprises Holdings acquired 430,248 Broadcom shares during the second quarter, valued at approximately $162.5 million. Institutional investors and hedge funds collectively own 76.43% of AVGO.
• Broadcom reported fiscal third-quarter revenue of $29.6 billion, up 86% year over year, while AI semiconductor revenue surged 221% to $16.7 billion. Management raised its AI revenue outlook to $115 billion for fiscal 2027 and $230 billion for fiscal 2028.
• Despite strong results and analyst support, shares recently traded down 2.7% as fourth-quarter revenue guidance came in slightly below expectations. Investors are also monitoring supply constraints, customer concentration, competitive risks and significant insider selling.

Clal Insurance Enterprises Holdings Ltd bought a new stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) during the second quarter, according to its most recent 13F filing with the SEC. The institutional investor bought 430,248 shares of the semiconductor manufacturer's stock, valued at approximately $162,526,000.

Other hedge funds also recently modified their holdings of the company. ROSS JOHNSON & Associates LLC lifted its stake in shares of Broadcom by 1,320.0% during 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 period. SWAN Capital LLC grew its stake in Broadcom by 261.9% in the 4th quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer's stock worth $26,000 after acquiring an additional 55 shares during the period. Networth Advisors LLC grew its stake in Broadcom by 546.2% in the 1st quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer's stock worth $26,000 after acquiring an additional 71 shares during the period. Harborfront Financial Group LLC acquired a new position in Broadcom in the 2nd quarter valued at $38,000. Finally, Cherry Tree Wealth Management LLC lifted its stake in shares of Broadcom by 44.9% during the 4th quarter. Cherry Tree Wealth Management LLC now owns 129 shares of the semiconductor manufacturer's stock worth $45,000 after purchasing an additional 40 shares during the period. 76.43% of the stock is owned by institutional investors and hedge funds.

Broadcom News Summary

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom reported fiscal third-quarter revenue of $29.6 billion, up 86% year over year, and non-GAAP EPS of $3.32, exceeding estimates of $29.43 billion and $3.22. AI semiconductor revenue surged 221% to $16.7 billion, while free cash flow reached $13.7 billion. Broadcom fiscal third-quarter results
• Positive Sentiment: Management raised its fiscal 2027 AI revenue outlook to $115 billion and projected $230 billion in fiscal 2028, alongside confidence in fiscal 2027 EPS of at least $30. Analysts including Macquarie, Cantor Fitzgerald, BMO and Rosenblatt responded with upgrades or higher price targets, supporting the long-term AI investment case. Broadcom AI growth outlook
• Neutral Sentiment: Broadcom declared a quarterly dividend of $0.65 per share, payable September 30 to shareholders of record September 21. The dividend provides modest income but is unlikely to drive the stock’s near-term performance. Broadcom dividend announcement
• Negative Sentiment: Fiscal fourth-quarter revenue guidance of approximately $34.8 billion was below Wall Street’s roughly $35.0 billion expectation. Investors viewed the outlook as insufficient given AVGO’s premium valuation and elevated AI expectations, overshadowing the earnings beat. Broadcom forecasts quarterly revenue below estimates
• Negative Sentiment: Investors are also weighing supply constraints involving power, land, chips and substrates, along with customer concentration among major hyperscalers such as Alphabet, Anthropic and OpenAI. Competition from custom-chip rivals, including Marvell, adds uncertainty to the ambitious long-term forecast. Broadcom AI supply constraints
• Negative Sentiment: Recent disclosures that Third Point exited its Broadcom position and that company insiders have overwhelmingly sold shares may reinforce profit-taking concerns, although these transactions are not necessarily indicative of deteriorating fundamentals. Dan Loeb exits Broadcom position

Insider Buying and Selling

In other Broadcom news, Director Justine Page sold 1,602 shares of the firm's stock in a transaction dated Monday, June 29th. The stock was sold at an average price of $373.86, for a total value of $598,923.72. Following the transaction, the director directly owned 17,426 shares of the company's stock, valued at $6,514,884.36. This trade represents a 8.42% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Gayla Delly sold 1,890 shares of the company's stock in a transaction dated Wednesday, July 8th. The stock was sold at an average price of $385.38, for a total value of $728,368.20. Following the completion of the sale, the director directly owned 31,326 shares of the company's stock, valued at $12,072,413.88. The trade was a 5.69% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 61,644 shares of company stock valued at $24,016,214. 1.90% of the stock is owned by company insiders.

Broadcom Trading Down 2.7%

NASDAQ AVGO opened at $357.16 on Friday. The firm has a market capitalization of $1.70 trillion, a price-to-earnings ratio of 45.61, a PEG ratio of 0.70 and a beta of 1.44. The company has a debt-to-equity ratio of 0.71, a quick ratio of 2.01 and a current ratio of 2.24. Broadcom Inc. has a one year low of $289.96 and a one year high of $495.00. The company's 50 day moving average price is $383.71 and its 200 day moving average price is $377.36.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its quarterly earnings data on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.22 by $0.10. Broadcom had a net margin of 42.94% and a return on equity of 50.76%. The company had revenue of $29.59 billion during the quarter, compared to the consensus estimate of $29.24 billion. During the same period in the previous year, the firm earned $1.69 earnings per share. Broadcom's revenue for the quarter was up 85.5% on a year-over-year basis. On average, sell-side analysts predict that Broadcom Inc. will post 10.24 EPS for the current year.

Broadcom Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Monday, September 21st will be issued a $0.65 dividend. This represents a $2.60 annualized dividend and a yield of 0.7%. The ex-dividend date is Monday, September 21st. Broadcom's dividend payout ratio is currently 43.33%.

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on AVGO shares. Oppenheimer restated an "outperform" rating and set a $535.00 price objective (up from $450.00) on shares of Broadcom in a report on Thursday, June 4th. KeyCorp reiterated an "overweight" rating and set a $575.00 target price on shares of Broadcom in a research report on Thursday. Fox Advisors upgraded Broadcom to an "outperform" rating in a report on Thursday. Benchmark upped their price objective 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. Finally, The Goldman Sachs Group reiterated a "buy" rating on shares of Broadcom in a report on Monday, August 3rd. Thirty-one investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $501.77.

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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