Empire Life Investments Inc. Cuts Position in Broadcom Inc. $AVGO

Key Points

• Empire Life Investments cut its Broadcom stake by 22.6% in the second quarter, selling 22,078 shares and retaining 75,476 shares worth approximately $28.5 million. Institutional investors and hedge funds collectively own 76.43% of Broadcom.
• Broadcom’s AI-driven growth outlook remains strong: Analysts maintain a “Moderate Buy” consensus with an average price target of $491.97, while reported AI demand and 47.9% year-over-year quarterly revenue growth support the bullish case.
• Risks include rising leverage and competitive pressure: Broadcom is reportedly considering tens of billions of dollars in debt financing for AI infrastructure, while Marvell’s Google partnership could challenge Broadcom’s position in custom AI chips. Insiders have also sold more than $24 million in shares over the past three months.

Empire Life Investments Inc. lowered its position in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 22.6% in the second quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 75,476 shares of the semiconductor manufacturer's stock after selling 22,078 shares during the quarter. Broadcom makes up about 1.6% of Empire Life Investments Inc.'s holdings, making the stock its 18th biggest holding. Empire Life Investments Inc.'s holdings in Broadcom were worth $28,511,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in the company. ROSS JOHNSON & Associates LLC boosted its holdings in Broadcom by 1,320.0% in the fourth quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer's stock valued at $25,000 after purchasing an additional 66 shares in the last quarter. Networth Advisors LLC raised its holdings in Broadcom by 546.2% during the first quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer's stock worth $26,000 after purchasing an additional 71 shares in the last quarter. SWAN Capital LLC lifted its position in shares of Broadcom by 261.9% during the 4th quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer's stock worth $26,000 after buying an additional 55 shares during the last quarter. Nvest Wealth Strategies Inc. purchased a new stake in shares of Broadcom during the 4th quarter worth approximately $33,000. Finally, Camelot Portfolios LLC acquired a new position in shares of Broadcom in the 4th quarter valued at $45,000. Institutional investors and hedge funds own 76.43% of the company's stock.

Broadcom News Roundup

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: AI financing deal could expand Broadcom’s growth opportunity: Broadcom is reportedly discussing $70 billion to $80 billion of debt financing—potentially approaching $100 billion—to provide AI chips to Anthropic and other companies. The arrangement could support substantial future chip demand, although the financing remains under discussion. Broadcom debt deal expected to reach upwards of $70 billion
• Positive Sentiment: Analysts remain constructive: BMO initiated coverage with an “outperform” rating and a $455 price target, implying meaningful upside from recent levels. Other recent commentary also argues that Broadcom’s AI cycle and long-term custom-chip position could support further gains. Broadcom Stock Picks Up Another Lofty Bull Note
• Positive Sentiment: Strong AI demand underpins the bullish case: Reports cite approximately $30 billion in quarterly AI bookings and management’s goal of exceeding $100 billion in AI sales by 2027. Broadcom’s latest reported quarter also showed 47.9% year-over-year revenue growth, reinforcing the company’s momentum. Broadcom's AI Boom: Is a 2x Stock Gain Still Within Reach?
• Neutral Sentiment: Debt-funded expansion introduces execution and balance-sheet risk: Borrowing tens of billions of dollars could accelerate AI infrastructure growth, but it would also increase leverage and financing costs if customer demand or deal economics disappoint. Broadcom reportedly eyes nearly $100 billion debt package
• Negative Sentiment: Marvell’s Google partnership threatens Broadcom’s custom AI-chip dominance: Marvell’s agreement covers products connected to Google’s TPU ecosystem, including inference accelerators and networking components. Google also received warrants that could align it more closely with Marvell, raising concerns about future share loss for Broadcom despite Broadcom’s existing multiyear Google partnership. Marvell Constructs an AI Moat With Alphabet Warrants

Analysts Set New Price Targets

Several brokerages recently commented on AVGO. Royal Bank Of Canada lifted their price target on shares of Broadcom from $360.00 to $400.00 and gave the stock a "sector perform" rating in a research note on Thursday, June 4th. Jefferies Financial Group set a $550.00 price target on Broadcom and gave the stock a "buy" rating in a research note on Thursday, June 4th. Rosenblatt Securities reaffirmed a "buy" rating and set a $500.00 price target on shares of Broadcom in a research report on Thursday, June 4th. Weiss Ratings lowered shares of Broadcom from a "buy (b)" rating to a "buy (b-)" rating in a research report on Thursday, July 30th. Finally, UBS Group set a $485.00 price target on shares of Broadcom and gave the company a "buy" rating in a research report on Thursday, June 4th. Twenty-nine investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $491.97.

Insider Buying and Selling at Broadcom

In other news, Director Harry L. You acquired 1,000 shares of Broadcom stock in a transaction that occurred on Thursday, June 11th. The shares were acquired at an average price of $373.57 per share, with a total value of $373,570.00. Following the completion of the purchase, the director owned 38,466 shares of the company's stock, valued at approximately $14,369,743.62. This represents a 2.67% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Justine Page sold 1,602 shares of the company's stock in a transaction 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 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 ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 61,644 shares of company stock valued at $24,016,214 over the last three months. Company insiders own 1.90% of the company's stock.

Broadcom Trading Up 1.2%

Shares of AVGO opened at $368.45 on Friday. The company has a current ratio of 2.24, a quick ratio of 2.01 and a debt-to-equity ratio of 0.71. The firm's 50-day moving average is $388.57 and its two-hundred day moving average is $374.80. Broadcom Inc. has a twelve month low of $287.17 and a twelve month high of $495.00. The firm has a market capitalization of $1.75 trillion, a P/E ratio of 61.41, a PEG ratio of 0.69 and a beta of 1.45.

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

Broadcom Announces Dividend

The firm 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. The ex-dividend date was Monday, June 22nd. This represents a $2.60 dividend on an annualized basis and a yield of 0.7%. Broadcom's payout ratio is presently 43.33%.

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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