Fayez Sarofim & Co Boosts Stock Position in Broadcom Inc. $AVGO

Key Points

• Fayez Sarofim & Co significantly increased its Broadcom stake by 2,043.1% in the second quarter, acquiring 1.35 million additional shares worth approximately $535.1 million. Institutional investors now own 76.43% of Broadcom.
• Broadcom exceeded quarterly expectations, reporting $3.32 in earnings per share and $29.59 billion in revenue, up 85.5% year over year. AI semiconductor revenue surged 221%, supporting an optimistic long-term outlook.
• Despite strong AI demand and a consensus “Moderate Buy” rating, investors remain concerned about Broadcom’s slightly weaker-than-expected fourth-quarter revenue outlook, customer concentration, margin pressure and elevated valuation. The company also declared a quarterly dividend of $0.65 per share.

Fayez Sarofim & Co raised its position in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 2,043.1% in the 2nd quarter, according to the company in its most recent disclosure with the SEC. The fund owned 1,416,634 shares of the semiconductor manufacturer's stock after buying an additional 1,350,533 shares during the quarter. Broadcom comprises about 1.3% of Fayez Sarofim & Co's investment portfolio, making the stock its 24th largest holding. Fayez Sarofim & Co's holdings in Broadcom were worth $535,133,000 at the end of the most recent reporting period.

A number of other institutional investors have also modified their holdings of the company. Cornerstone Advisors LLC purchased a new stake in shares of Broadcom in the second quarter valued at approximately $92,522,000. Bank of America Corp DE grew its stake 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 acquiring an additional 894,564 shares during the period. Clear Harbor Asset Management LLC acquired a new stake in Broadcom in the 2nd quarter valued at $3,302,000. Bartlett & CO. Wealth Management LLC increased its holdings 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 worth $34,061,000 after acquiring an additional 62,050 shares in the last quarter. Finally, First Bank & Trust increased its holdings in Broadcom by 17.2% in 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.

Broadcom Stock Performance

NASDAQ:AVGO opened at $357.89 on Monday. The company's 50-day moving average price is $383.57 and its 200-day moving average price is $377.59. The company has a current ratio of 2.50, a quick ratio of 2.29 and a debt-to-equity ratio of 0.57. The company has a market cap of $1.70 trillion, a P/E ratio of 45.71 and a beta of 1.44. Broadcom Inc. has a twelve month low of $289.96 and a twelve month high of $495.00.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its quarterly earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share for the quarter, topping analysts' consensus estimates of $3.22 by $0.10. Broadcom had a net margin of 42.94% and a return on equity of 48.33%. The firm had revenue of $29.59 billion for the quarter, compared to analyst estimates of $29.24 billion. During the same period in the previous year, the business posted $1.69 earnings per share. Broadcom's quarterly revenue was up 85.5% on a year-over-year basis. On average, sell-side analysts forecast that Broadcom Inc. will post 10.25 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The business 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 dividend of $0.65 per share. This represents a $2.60 annualized dividend and a dividend yield of 0.7%. The ex-dividend date is Monday, September 21st. Broadcom's payout ratio is currently 33.21%.

Key Headlines Impacting Broadcom

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.

Insider Buying and Selling

In other Broadcom news, Director Gayla Delly sold 1,890 shares of the business's stock in a transaction 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 transaction, the director owned 31,326 shares of the company's stock, valued at approximately $12,072,413.88. The trade was a 5.69% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. 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 sale, 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 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 ninety days. 1.90% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on AVGO shares. The Goldman Sachs Group reaffirmed a "buy" rating on shares of Broadcom in a report on Monday, August 3rd. Lake Street Capital upgraded shares of Broadcom to a "buy" rating in a research report on Thursday. Citigroup reaffirmed a "buy" rating and issued a $515.00 price target (up from $500.00) on shares of Broadcom in a research note on Friday. JPMorgan Chase & Co. boosted their price objective on Broadcom from $500.00 to $580.00 and gave the stock an "overweight" rating in a research note on Thursday, June 4th. Finally, Truist Financial reduced their target price on Broadcom from $550.00 to $520.00 and set a "buy" rating for the company 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 company's stock. According to MarketBeat.com, Broadcom presently has a consensus rating of "Moderate Buy" and an average target price of $500.60.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source