Covington Investment Advisors Inc. Has $42.14 Million Stock Position in Broadcom Inc. $AVGO

Key Points

• Covington Investment Advisors reduced its Broadcom position by 1.7% in the second quarter, but still held 111,562 shares valued at $42.14 million. Broadcom represents 5.4% of the firm’s portfolio, while institutional investors collectively own 76.43% of the stock.
• Broadcom reported strong quarterly results, with EPS of $3.32 beating estimates and revenue rising 85.5% year over year to $29.59 billion. AI semiconductor revenue reached approximately $16.7 billion, supported by demand for custom accelerators and networking products.
• Analyst sentiment remains broadly bullish, with a consensus “Moderate Buy” rating and a $505.97 price target, although concerns include a softer near-term revenue outlook, high valuation, rising Treasury yields, and increasing AI-chip competition. The company also declared a quarterly dividend of $0.65 per share.

Covington Investment Advisors Inc. trimmed its position in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 1.7% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 111,562 shares of the semiconductor manufacturer's stock after selling 1,938 shares during the quarter. Broadcom makes up 5.4% of Covington Investment Advisors Inc.'s holdings, making the stock its 3rd biggest holding. Covington Investment Advisors Inc.'s holdings in Broadcom were worth $42,143,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors also recently made changes to their positions in the company. Cornerstone Advisors LLC bought a new stake in shares of Broadcom during the second quarter valued at approximately $92,522,000. Bank of America Corp DE lifted its holdings in shares of Broadcom by 1.5% in the 1st quarter. Bank of America Corp DE now owns 58,737,097 shares of the semiconductor manufacturer's stock worth $18,179,719,000 after purchasing an additional 894,564 shares in the last quarter. Clear Harbor Asset Management LLC bought a new position in shares of Broadcom in the 2nd quarter worth $3,302,000. Bartlett & CO. Wealth Management LLC grew its position in Broadcom by 129.3% in the 1st quarter. Bartlett & CO. Wealth Management LLC now owns 110,048 shares of the semiconductor manufacturer's stock valued at $34,061,000 after purchasing an additional 62,050 shares during the period. Finally, First Bank & Trust grew its position in Broadcom by 17.2% in the 2nd quarter. First Bank & Trust now owns 10,503 shares of the semiconductor manufacturer's stock valued at $3,968,000 after purchasing an additional 1,545 shares during the period. 76.43% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In other Broadcom news, Director Justine Page sold 1,602 shares of the business's stock in a transaction on 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 owned 17,426 shares of the company's stock, valued at approximately $6,514,884.36. The trade was a 8.42% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Gayla Delly sold 1,890 shares of the company's stock in a transaction on Wednesday, July 8th. The shares were sold at an average price of $385.38, for a total value of $728,368.20. Following the completion of the transaction, the director owned 31,326 shares of the company's stock, valued at $12,072,413.88. This trade represents a 5.69% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 61,644 shares of company stock valued at $24,016,214. Insiders own 1.90% of the company's stock.

Key Stories Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom reported record AI semiconductor revenue of approximately $16.7 billion and projected that the business could generate about $115 billion in fiscal 2027 and $230 billion in fiscal 2028. Custom AI accelerators and networking products are benefiting from heavy spending by hyperscalers. Broadcom Q3 2026 earnings call transcript
• Positive Sentiment: OpenAI’s selection of Broadcom for its first custom AI chip reinforces the company’s position as a key supplier to major AI developers. OpenAI’s planned $750 billion of compute infrastructure spending through 2030 could expand the addressable market for Broadcom’s chips and connectivity technology. OpenAI compute spending article
• Positive Sentiment: Several analysts and investment articles continue to argue that Broadcom’s custom-silicon and networking exposure could support substantial long-term earnings growth, with some bullish scenarios implying a share price near $900. Wall Street’s broader outlook remains constructive despite the recent pullback. Wall Street Broadcom price target article
• Neutral Sentiment: Reported short-interest data shows zero shares sold short and a zero-day days-to-cover ratio, offering no meaningful evidence that short sellers are driving the stock’s recent weakness.
• Negative Sentiment: Broadcom’s fiscal fourth-quarter revenue outlook reportedly fell short of Wall Street expectations. That softer near-term forecast led Truist to reduce its price target, highlighting a mismatch between rapidly rising long-term AI projections and nearer-term revenue timing. Truist cuts Broadcom price target
• Negative Sentiment: Investors are also focused on valuation and competitive risks, including potential AI-chip efforts by Google, Samsung, and other suppliers. Rising Treasury yields make high-multiple growth stocks less attractive and increase the market’s demand for continued earnings beats.

Broadcom Stock Down 1.0%

AVGO opened at $360.83 on Friday. Broadcom Inc. has a fifty-two week low of $289.96 and a fifty-two week high of $495.00. The firm has a market capitalization of $1.72 trillion, a P/E ratio of 46.08 and a beta of 1.44. The company's 50-day moving average is $383.00 and its 200 day moving average is $378.43. The company has a debt-to-equity ratio of 0.57, a current ratio of 2.50 and a quick ratio of 2.29.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 EPS for the quarter, topping the consensus estimate of $3.22 by $0.10. The firm had revenue of $29.59 billion for the quarter, compared to analysts' expectations of $29.24 billion. Broadcom had a net margin of 42.94% and a return on equity of 48.33%. The company's quarterly revenue was up 85.5% compared to the same quarter last year. During the same quarter last year, the firm earned $1.69 EPS. Research analysts expect that Broadcom Inc. will post 10.36 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The firm 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 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 is Monday, September 21st. Broadcom's dividend payout ratio (DPR) is 33.21%.

Analysts Set New Price Targets

AVGO has been the topic of several research reports. Piper Sandler began coverage on shares of Broadcom in a report on Wednesday. They set an "overweight" rating and a $460.00 price objective on the stock. Oppenheimer restated an "outperform" rating and issued a $535.00 target price (up from $450.00) on shares of Broadcom in a report on Thursday, June 4th. Truist Financial dropped their price target on shares of Broadcom from $550.00 to $520.00 and set a "buy" rating on the stock in a research report on Thursday, September 3rd. DA Davidson set a $350.00 price target on Broadcom and gave the company a "neutral" rating in a research note on Friday, September 4th. Finally, Morgan Stanley reissued an "overweight" rating and set a $505.00 price objective (up from $502.00) on shares of Broadcom in a report on Thursday, September 3rd. Thirty analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $505.97.

About Broadcom

Broadcom Inc NASDAQ: AVGO designs, develops and supplies semiconductor and infrastructure software products for businesses, telecommunications providers and other organizations worldwide. Its semiconductor portfolio includes networking and connectivity components, custom application-specific integrated circuits, broadband and wireless communications products, storage adapters, optical components, and industrial solutions.

The company also provides enterprise infrastructure software through businesses including VMware, which offers virtualization and private- and hybrid-cloud solutions; mainframe and enterprise software; and cybersecurity products.

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