Dearborn Partners LLC Buys New Shares in Broadcom Inc. $AVGO

Key Points

• Dearborn Partners initiated a Broadcom position in the second quarter, buying 12,479 shares valued at approximately $3.86 million. Institutional investors and hedge funds collectively own 76.43% of the company.
• Broadcom exceeded quarterly expectations with adjusted EPS of $3.32 and revenue of $29.59 billion, up 85.5% year over year. Analysts maintain a “Moderate Buy” consensus with an average price target of $500.60, though fourth-quarter guidance slightly missed estimates.
• Insiders sold 61,644 shares worth approximately $24.0 million over the past 90 days, while Broadcom announced a quarterly dividend of $0.65 per share, representing a 0.7% yield.

Dearborn Partners LLC acquired a new position in Broadcom Inc. (NASDAQ:AVGO - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm acquired 12,479 shares of the semiconductor manufacturer's stock, valued at approximately $3,862,000.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Cornerstone Advisors LLC acquired a new stake in shares of Broadcom in the second quarter valued at approximately $92,522,000. Bank of America Corp DE raised its holdings in 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 valued at $18,179,719,000 after buying an additional 894,564 shares during the period. Clear Harbor Asset Management LLC purchased a new stake in shares of Broadcom in the 2nd quarter valued at approximately $3,302,000. Bartlett & CO. Wealth Management LLC lifted its stake in Broadcom by 129.3% during the first quarter. Bartlett & CO. Wealth Management LLC now owns 110,048 shares of the semiconductor manufacturer's stock worth $34,061,000 after purchasing an additional 62,050 shares in the last quarter. Finally, First Bank & Trust lifted its stake in Broadcom by 17.2% during the 2nd quarter. First Bank & Trust now owns 10,503 shares of the semiconductor manufacturer's stock worth $3,968,000 after acquiring an additional 1,545 shares in the last quarter. 76.43% of the stock is currently owned by institutional investors and hedge funds.

Insiders Place Their Bets

In other news, Director Gayla Delly sold 1,890 shares of the stock in a transaction that occurred 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 completion of the transaction, the director directly owned 31,326 shares of the company's stock, valued at approximately $12,072,413.88. This represents a 5.69% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Director Justine Page sold 1,602 shares of the 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 completion of the transaction, the director owned 17,426 shares of the company's stock, valued at $6,514,884.36. The trade was a 8.42% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 61,644 shares of company stock worth $24,016,214. Company insiders own 1.90% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on AVGO shares. Erste Group Bank reissued a "hold" rating on shares of Broadcom in a research report on Tuesday, July 7th. Bank of America increased their price objective on shares of Broadcom from $450.00 to $530.00 and gave the company a "buy" rating in a research report on Thursday, June 4th. JPMorgan Chase & Co. lifted their price target on Broadcom from $500.00 to $580.00 and gave the stock an "overweight" rating in a report on Thursday, June 4th. Citigroup reaffirmed a "buy" rating and set a $515.00 price objective (up from $500.00) on shares of Broadcom in a research report on Friday. Finally, Truist Financial dropped their price objective on Broadcom from $550.00 to $520.00 and set a "buy" rating on the stock in a report on Thursday. Thirty-one equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat.com, Broadcom has an average rating of "Moderate Buy" and a consensus target price of $500.60.

Broadcom Stock Up 0.2%

AVGO stock opened at $357.89 on Friday. Broadcom Inc. has a 12 month low of $289.96 and a 12 month high of $495.00. The company has a market cap of $1.70 trillion, a price-to-earnings ratio of 45.71, a price-to-earnings-growth ratio of 0.68 and a beta of 1.44. The company 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 (NASDAQ:AVGO - Get Free Report) last released its quarterly earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.22 by $0.10. Broadcom had a return on equity of 48.33% and a net margin of 42.94%.The firm had revenue of $29.59 billion for the quarter, compared to analyst estimates of $29.24 billion. During the same quarter last year, the company posted $1.69 earnings per share. The business's revenue was up 85.5% on a year-over-year basis. Sell-side analysts expect that Broadcom Inc. will post 10.25 earnings per share for the current year.

Broadcom Announces Dividend

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

Broadcom News Summary

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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