Connor Clark & Lunn Investment Management Ltd. Buys New Stake in Broadcom Inc. $AVGO

Key Points

• Connor Clark & Lunn Investment Management acquired 1,533,500 Broadcom shares in the second quarter, worth approximately $579.3 million. Broadcom now represents about 1.1% of the firm’s portfolio, while institutional investors collectively own 76.43% of AVGO.
• Broadcom reported strong fiscal third-quarter results, with revenue up 85.5% year over year to roughly $29.6 billion and EPS of $3.32, exceeding estimates. AI semiconductor revenue surged 221% to $16.7 billion, and management raised its long-term AI revenue outlook.
• Despite the earnings beat and broadly positive analyst ratings, shares fell 2.7% as fourth-quarter revenue guidance came in slightly below expectations. Investors are also monitoring AI infrastructure constraints, customer concentration, competitive risks and recent insider selling.

Connor Clark & Lunn Investment Management Ltd. purchased a new stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor purchased 1,533,500 shares of the semiconductor manufacturer's stock, valued at approximately $579,280,000. Broadcom comprises approximately 1.1% of Connor Clark & Lunn Investment Management Ltd.'s investment portfolio, making the stock its 18th biggest position.

A number of other institutional investors have also modified their holdings of the stock. Norges Bank acquired a new stake in Broadcom during the fourth quarter worth about $24,252,196,000. Bank of New York Mellon Corp purchased a new stake in Broadcom in the 2nd quarter worth approximately $10,528,191,000. Deutsche Bank AG purchased a new stake in Broadcom in the 2nd quarter worth approximately $5,661,216,000. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in shares of Broadcom during the 2nd quarter valued at approximately $4,457,583,000. Finally, Cardano Risk Management B.V. lifted its stake in shares of Broadcom by 895.2% in the 4th quarter. Cardano Risk Management B.V. now owns 12,689,800 shares of the semiconductor manufacturer's stock valued at $4,391,940,000 after purchasing an additional 11,414,701 shares during the period. Hedge funds and other institutional investors own 76.43% of the company's stock.

Trending Headlines about Broadcom

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 Activity at Broadcom

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 sale, the director owned 17,426 shares in the company, valued at approximately $6,514,884.36. This trade represents a 8.42% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Mark Brazeal sold 25,000 shares of the business's stock in a transaction that occurred 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 completion of the sale, the insider directly owned 194,989 shares in the company, valued at approximately $78,254,935.37. The trade was a 11.36% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 61,644 shares of company stock valued at $24,016,214 in the last ninety days. Insiders own 1.90% of the company's stock.

Wall Street Analyst Weigh In

Several analysts recently commented on the stock. Raymond James Financial restated an "outperform" rating and set a $475.00 price target (up from $450.00) on shares of Broadcom in a research report on Thursday. Rosenblatt Securities initiated coverage on Broadcom in a research report on Thursday. They set a "buy" rating and a $600.00 target price on the stock. Zacks Research lowered Broadcom from a "strong-buy" rating to a "hold" rating in a research note on Thursday, May 21st. Truist Financial lowered their price target on Broadcom from $550.00 to $520.00 and set a "buy" rating on the stock in a research report on Thursday. Finally, Royal Bank Of Canada initiated coverage on Broadcom in a report on Thursday. They issued an "outperform" rating on the stock. Thirty-one research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $501.77.

Broadcom Trading Down 2.7%

Shares of AVGO opened at $357.16 on Friday. The firm has a 50-day moving average price of $383.71 and a 200 day moving average price of $377.36. The firm has a market capitalization of $1.70 trillion, a P/E ratio of 45.61, a P/E/G ratio of 0.70 and a beta of 1.44. The company has a current ratio of 2.24, a quick ratio of 2.01 and a debt-to-equity ratio of 0.71. Broadcom Inc. has a 12-month low of $289.96 and a 12-month high of $495.00.

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

Broadcom Announces Dividend

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

Broadcom Company 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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