Confluence Wealth Services Inc. Acquires 7,899 Shares of Broadcom Inc. $AVGO

Key Points

• Confluence Wealth Services increased its Broadcom stake by 18% in the second quarter, acquiring 7,899 shares and bringing its holdings to 51,864 shares valued at approximately $19.6 million. Institutional investors and hedge funds own 76.43% of the stock.
• Broadcom reported quarterly EPS of $2.44, exceeding estimates, while revenue rose 47.9% year over year to $22.19 billion. The company also maintains a quarterly dividend of $0.65 per share, equal to a 0.7% annualized yield.
• Analysts remain broadly bullish, with 28 Buy ratings and a consensus price target of $493.24, but elevated valuation, insider selling, VMware security concerns and uncertainty over AI infrastructure costs pose risks.

Confluence Wealth Services Inc. raised its stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 18.0% in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 51,864 shares of the semiconductor manufacturer's stock after acquiring an additional 7,899 shares during the quarter. Confluence Wealth Services Inc.'s holdings in Broadcom were worth $19,591,000 as of its most recent SEC filing.

A number of other hedge funds also recently made changes to their positions in AVGO. Fullerton Advisors LLC lifted its stake in Broadcom by 1.3% in the 1st quarter. Fullerton Advisors LLC now owns 1,989 shares of the semiconductor manufacturer's stock valued at $616,000 after purchasing an additional 25 shares during the last quarter. NORTHSTAR ASSET MANAGEMENT Co grew its stake in shares of Broadcom by 0.5% during the first quarter. NORTHSTAR ASSET MANAGEMENT Co now owns 5,350 shares of the semiconductor manufacturer's stock worth $1,656,000 after buying an additional 25 shares during the last quarter. RFG Holdings Inc. grew its stake in shares of Broadcom by 0.3% during the first quarter. RFG Holdings Inc. now owns 8,499 shares of the semiconductor manufacturer's stock worth $2,631,000 after buying an additional 26 shares during the last quarter. Yukon Wealth Management Inc. increased its holdings in shares of Broadcom by 1.1% during the first quarter. Yukon Wealth Management Inc. now owns 2,501 shares of the semiconductor manufacturer's stock worth $774,000 after buying an additional 26 shares in the last quarter. Finally, NerdWallet Wealth Partners LLC increased its holdings in shares of Broadcom by 2.6% during the second quarter. NerdWallet Wealth Partners LLC now owns 1,057 shares of the semiconductor manufacturer's stock worth $399,000 after buying an additional 27 shares in the last quarter. 76.43% of the stock is currently owned by institutional investors and hedge funds.

Broadcom Stock Down 3.2%

Shares of NASDAQ:AVGO opened at $379.83 on Wednesday. The firm has a market cap of $1.81 trillion, a P/E ratio of 63.31, a P/E/G ratio of 0.75 and a beta of 1.45. Broadcom Inc. has a 12-month low of $281.87 and a 12-month high of $495.00. The business has a fifty day simple moving average of $389.46 and a 200 day simple moving average of $374.39. The company has a quick ratio of 2.01, a current ratio of 2.24 and a debt-to-equity ratio of 0.71.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its quarterly earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, beating analysts' consensus estimates of $2.40 by $0.04. The firm had revenue of $22.19 billion for the quarter, compared to analyst estimates of $22.13 billion. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.The business's revenue was up 47.9% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.58 EPS. Analysts predict that Broadcom Inc. will post 10.24 earnings per share for the current year.

Broadcom Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Monday, June 22nd were given a dividend of $0.65 per share. This represents a $2.60 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend was Monday, June 22nd. Broadcom's dividend payout ratio is currently 43.33%.

Key Stories Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s custom AI accelerator business continues to gain traction, while its partnership with Alphabet on custom silicon and infrastructure supporting Anthropic workloads reinforces expectations for sustained AI-related demand. Broadcom vs. Nvidia: 1 Metric Shows Which AI Chipmaker Is the Better Bargain
• Positive Sentiment: Analyst sentiment remains broadly constructive. Broadcom received a Zacks Rank upgrade to Buy, and the average analyst price target implies substantial upside, supported by rising earnings estimates. Broadcom Inc. Upgraded to Buy
• Positive Sentiment: The company is scheduled to pay its regular quarterly dividend of $0.65 per share on September 30, providing continued shareholder income. Broadcom to Pay Dividends Next Month
• Neutral Sentiment: VMware Explore 2026 will showcase private-cloud and AI capabilities, potentially highlighting growth opportunities for Broadcom’s VMware business, although the event has not yet provided a material financial update. VMware Explore 2026
• Negative Sentiment: Several comparisons favor Astera Labs over Broadcom because of Astera’s faster growth, improving estimates, and exposure to AI connectivity demand. This may encourage investors to rotate toward smaller AI infrastructure stocks. ALAB vs. AVGO
• Negative Sentiment: Reports that hedge funds reduced or exited Broadcom positions during the second quarter, including shifts into other semiconductor names, are adding to selling pressure and weakening institutional sentiment. Hedge Funds Turn Bearish on Broadcom
• Negative Sentiment: Investors remain concerned about a reported VMware vCenter Syslog Server security vulnerability, AI funding uncertainty, and the possibility that rising AI infrastructure costs could pressure margins. These risks are particularly important given AVGO’s elevated valuation. Broadcom Bounce and VMware Concerns

Insider Activity

In other news, insider Mark David Brazeal sold 25,000 shares of the stock in a transaction on Friday, July 10th. The shares were sold at an average price of $401.33, for a total transaction of $10,033,250.00. Following the completion of the sale, the insider directly owned 194,989 shares in the company, valued at $78,254,935.37. This represents a 11.36% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Gayla J. Delly sold 1,890 shares of the 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 sale, the director owned 31,326 shares of the company's stock, valued at approximately $12,072,413.88. This trade represents a 5.69% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 61,644 shares of company stock worth $24,016,214 in the last 90 days. 1.90% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

Several research firms recently weighed in on AVGO. Bank of America raised their price objective on Broadcom from $450.00 to $530.00 and gave the company a "buy" rating in a report on Thursday, June 4th. Cantor Fitzgerald reaffirmed an "overweight" rating and issued a $525.00 target price on shares of Broadcom in a report on Thursday, June 4th. Weiss Ratings downgraded Broadcom from a "buy (b)" rating to a "buy (b-)" rating in a research report on Thursday, July 30th. TD Cowen reissued a "buy" rating and set a $500.00 price target on shares of Broadcom in a research note on Thursday, June 4th. Finally, UBS Group set a $485.00 price target on Broadcom and gave the stock a "buy" rating in a 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 company. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $493.24.

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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