Farringdon Capital Ltd. Buys Shares of 15,523 Broadcom Inc. $AVGO

Key Points

• Farringdon Capital acquired 15,523 Broadcom shares worth approximately $5.86 million in the second quarter, making Broadcom its seventh-largest holding and representing 2.9% of its portfolio.
• Broadcom reported strong fiscal third-quarter results, with revenue up 85.5% year over year to $29.59 billion and non-GAAP EPS of $3.32. AI semiconductor revenue surged 221% to $16.7 billion.
• Despite the strong results, Broadcom’s fourth-quarter revenue forecast of about $34.8 billion fell slightly short of Wall Street expectations, raising concerns about competition and its elevated valuation of roughly 61 times earnings.

Farringdon Capital Ltd. acquired a new position in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) in the second quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor acquired 15,523 shares of the semiconductor manufacturer's stock, valued at approximately $5,864,000. Broadcom makes up approximately 2.9% of Farringdon Capital Ltd.'s investment portfolio, making the stock its 7th biggest holding.

A number of other institutional investors and hedge funds have also bought and sold shares of the company. Brighton Jones LLC raised its stake in shares of Broadcom by 21.8% during the fourth quarter. Brighton Jones LLC now owns 29,683 shares of the semiconductor manufacturer's stock valued at $6,882,000 after acquiring an additional 5,322 shares during the last quarter. Revolve Wealth Partners LLC boosted its position in shares of Broadcom by 10.4% during the 4th quarter. Revolve Wealth Partners LLC now owns 7,997 shares of the semiconductor manufacturer's stock valued at $1,854,000 after purchasing an additional 756 shares in the last quarter. United Bank boosted its holdings in shares of Broadcom by 76.5% during the 1st quarter. United Bank now owns 2,339 shares of the semiconductor manufacturer's stock worth $392,000 after buying an additional 1,014 shares in the last quarter. Sivia Capital Partners LLC grew its holdings in Broadcom by 10.1% in the second quarter. Sivia Capital Partners LLC now owns 12,693 shares of the semiconductor manufacturer's stock worth $3,499,000 after purchasing an additional 1,160 shares during the period. Finally, Capital & Planning LLC boosted its position in shares of Broadcom by 10.5% during the 2nd quarter. Capital & Planning LLC now owns 3,983 shares of the semiconductor manufacturer's stock worth $1,098,000 after purchasing an additional 378 shares in the last quarter. Institutional investors and hedge funds own 76.43% of the company's stock.

Insider Buying and Selling

In other news, Director Harry L. You bought 1,000 shares of the stock in a transaction dated Thursday, June 11th. The stock was bought at an average price of $373.57 per share, for a total transaction of $373,570.00. Following the completion of the acquisition, the director directly owned 38,466 shares in the company, valued at approximately $14,369,743.62. This trade represents a 2.67% increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Gayla J. Delly sold 1,890 shares of the firm's stock in a transaction dated Wednesday, July 8th. The shares were sold at an average price of $385.38, for a total transaction of $728,368.20. Following the transaction, the director directly owned 31,326 shares in the company, valued at $12,072,413.88. The trade was a 5.69% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 61,644 shares of company stock valued at $24,016,214 in the last 90 days. 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 fiscal third-quarter revenue of $29.59 billion, up 85.5% year over year, while non-GAAP EPS of $3.32 exceeded the $3.22 analyst consensus. GAAP profit rose sharply to $13.09 billion from $4.14 billion a year earlier. Broadcom third-quarter earnings report
• Positive Sentiment: AI semiconductor revenue reached $16.7 billion, increasing 221% year over year and 54% sequentially, highlighting strong demand for Broadcom’s custom AI accelerators. The company also generated $13.7 billion in free cash flow and declared a quarterly dividend of $0.65 per share. Broadcom AI semiconductor revenue and guidance
• Neutral Sentiment: Broadcom guided to approximately $34.8 billion in fourth-quarter revenue, representing 93% year-over-year growth, with non-GAAP operating margin of about 66%. The outlook still implies substantial growth, but management did not provide an EPS forecast in the reported guidance.
• Negative Sentiment: The fourth-quarter revenue forecast was below Wall Street expectations of roughly $35.0 billion to $35.03 billion. Investors viewed the shortfall as a sign that competition or execution risks could limit further gains from custom AI processors, particularly after the stock’s strong run and premium valuation. Reuters report on Broadcom guidance
• Negative Sentiment: Broadcom’s elevated valuation—approximately 61 times earnings—left little room for a merely solid outlook. Recent insider activity was also heavily weighted toward selling, although this is a secondary consideration compared with the earnings guidance.

Broadcom Stock Performance

Shares of Broadcom stock opened at $367.24 on Thursday. The company has a market cap of $1.75 trillion, a PE ratio of 61.21, a price-to-earnings-growth ratio of 0.71 and a beta of 1.44. Broadcom Inc. has a 52 week low of $289.96 and a 52 week high of $495.00. The business has a 50 day moving average price of $384.15 and a 200-day moving average price of $377.14. 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 announced its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.22 by $0.10. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.The company had revenue of $29.59 billion for the quarter, compared to analysts' expectations of $29.24 billion. During the same quarter in the previous year, the firm earned $1.69 earnings per share. Broadcom's quarterly revenue was up 85.5% on a year-over-year basis. Equities analysts anticipate that Broadcom Inc. will post 10.24 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

Several analysts have recently commented on the company. Cantor Fitzgerald restated an "overweight" rating and issued a $525.00 target price on shares of Broadcom in a research note on Thursday, June 4th. Oppenheimer reiterated an "outperform" rating and issued a $535.00 price target (up from $450.00) on shares of Broadcom in a report on Thursday, June 4th. Weiss Ratings cut Broadcom from a "buy (b)" rating to a "buy (b-)" rating in a research note on Thursday, July 30th. The Goldman Sachs Group restated a "buy" rating on shares of Broadcom in a report on Monday, August 3rd. Finally, Citigroup reaffirmed a "buy" rating on shares of Broadcom in a research report on Thursday, June 4th. Twenty-nine equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $491.97.

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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