Foster & Motley Inc. Buys New Position in Broadcom Inc. $AVGO

Key Points

• Foster & Motley initiated a Broadcom position in the second quarter, purchasing 18,615 shares valued at approximately $7.03 million. Institutional investors collectively own 76.43% of Broadcom’s stock.
• Analysts remain broadly positive, with 29 Buy ratings and four Holds; Broadcom has a consensus “Moderate Buy” rating and an average price target of $491.97.
• Broadcom reported strong quarterly results, including $2.44 in EPS and $22.19 billion in revenue, up 47.9% year over year. Shares opened at $368.79, while investors continue to weigh AI growth opportunities against competition from internally developed hyperscaler chips and potential leverage risks.

Foster & Motley Inc. bought a new position in Broadcom Inc. (NASDAQ:AVGO - Free Report) in the 2nd quarter, according to its most recent disclosure with the SEC. The firm bought 18,615 shares of the semiconductor manufacturer's stock, valued at approximately $7,032,000.

Several other hedge funds and other institutional investors also recently modified their holdings of the stock. ROSS JOHNSON & Associates LLC lifted its stake in shares of Broadcom by 1,320.0% in the 4th 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 during the period. SWAN Capital LLC raised its holdings in Broadcom by 261.9% in the fourth quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer's stock worth $26,000 after purchasing an additional 55 shares in the last quarter. Networth Advisors LLC raised its holdings in Broadcom by 546.2% in 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. Nvest Wealth Strategies Inc. purchased a new position in Broadcom during the fourth quarter valued at $33,000. Finally, Harborfront Financial Group LLC bought a new stake in shares of Broadcom during the 2nd quarter valued at $38,000. Hedge funds and other institutional investors own 76.43% of the company's stock.

Analysts Set New Price Targets

Several research analysts recently issued reports on AVGO shares. Morgan Stanley set a $502.00 price target on shares of Broadcom and gave the stock an "overweight" rating in a research note on Thursday, June 4th. Oppenheimer restated an "outperform" rating and set a $535.00 target price (up from $450.00) on shares of Broadcom in a research note on Thursday, June 4th. Jefferies Financial Group set a $550.00 target price on Broadcom and gave the company a "buy" rating in a report on Thursday, June 4th. Citigroup restated a "buy" rating on shares of Broadcom in a research note on Thursday, June 4th. Finally, JPMorgan Chase & Co. boosted their price objective on Broadcom from $500.00 to $580.00 and gave the company an "overweight" rating in a research report on Thursday, June 4th. Twenty-nine 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 data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $491.97.

Insiders Place Their Bets

In other Broadcom news, insider Mark David Brazeal sold 25,000 shares of the stock in a transaction dated Friday, July 10th. The shares were sold at an average price of $401.33, for a total value of $10,033,250.00. Following the completion of the sale, the insider owned 194,989 shares in the company, valued at approximately $78,254,935.37. This represents a 11.36% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Harry L. You acquired 1,000 shares of the company's stock in a transaction that occurred on Thursday, June 11th. The stock was purchased at an average cost of $373.57 per share, with a total value of $373,570.00. Following the acquisition, the director directly owned 38,466 shares of the company's stock, valued at $14,369,743.62. This trade represents a 2.67% increase in their position. The SEC filing for this purchase 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 owned by corporate insiders.

Trending Headlines about Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Mizuho remains bullish ahead of earnings, citing Broadcom’s nearly uninterrupted 30-quarter earnings track record, deeply negative investor sentiment, and the possibility that CEO Hock Tan will directly address concerns about custom ASIC competition and Google’s in-house chips. Mizuho is bullish on Broadcom ahead of Sept. 2 earnings
• Positive Sentiment: Broadcom’s partnership with OpenAI on the Jalapeño inference chip highlights demand for specialized AI infrastructure. OpenAI says the chip can deliver substantially better performance per watt than comparison systems, potentially supporting Broadcom’s custom-chip and networking growth. Why BNP thinks Jalapeño could benefit Broadcom stock
• Positive Sentiment: Analysts argue Broadcom offers a better AI risk-reward profile than AMD because of its broader exposure across custom accelerators, networking, and infrastructure software, along with a comparatively lower valuation. Broadcom vs. AMD: Which AI Chip Stock Has the Better Risk-Reward?
• Positive Sentiment: A new Kyndryl collaboration expands VMware Cloud Foundation’s reach among enterprise customers, reinforcing Broadcom’s private-cloud and software modernization strategy. Broadcom Kyndryl partnership
• Neutral Sentiment: Royal Bank of Canada reiterated its “Sector Perform” rating, suggesting balanced expectations rather than a strong near-term catalyst. Royal Bank of Canada reiterates Sector Perform
• Negative Sentiment: Broadcom is reportedly considering $70 billion to $80 billion of debt financing for an AI chip-related transaction involving companies including Anthropic. The potential borrowing could accelerate growth but raises leverage, execution, and repayment risks. Broadcom nears $70B debt financing deal
• Negative Sentiment: Investors remain concerned that Google’s and other hyperscalers’ internally designed chips could pressure Broadcom’s custom-silicon revenue. Competition from Marvell, NVIDIA, and AMD adds to the risk, while Broadcom’s elevated earnings multiple leaves less room for disappointment. Marvell and Google custom silicon deal

Broadcom Price Performance

NASDAQ AVGO opened at $368.79 on Friday. Broadcom Inc. has a 52-week low of $287.17 and a 52-week high of $495.00. The firm's 50 day moving average price is $385.07 and its 200-day moving average price is $376.26. The company has a market cap of $1.75 trillion, a PE ratio of 61.47, a P/E/G ratio of 0.71 and a beta of 1.45. The company has a debt-to-equity ratio of 0.71, a quick ratio of 2.01 and a current ratio of 2.24.

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

Broadcom Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 22nd were paid a $0.65 dividend. This represents a $2.60 annualized dividend and a dividend yield of 0.7%. The ex-dividend date was Monday, June 22nd. Broadcom's payout ratio is currently 43.33%.

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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