FSA Investment Group LLC Sells 2,772 Shares of Broadcom Inc. $AVGO

Key Points

• FSA Investment Group LLC cut its Broadcom stake by 75.9% in the third quarter, selling 2,772 shares and retaining 882 shares valued at approximately $310,000. Institutional investors and hedge funds collectively own 76.43% of Broadcom.
• Broadcom reported strong quarterly results, with adjusted EPS of $3.32 and revenue of $29.59 billion, up 85.5% year over year and above analyst expectations.
• Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and an average price target of $527.20, though concerns persist over the stock’s roughly 48-times earnings valuation, AI financing risks and dependence on continued hyperscaler spending.

FSA Investment Group LLC trimmed its position in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 75.9% in the 3rd quarter, according to its most recent disclosure with the SEC. The institutional investor owned 882 shares of the semiconductor manufacturer's stock after selling 2,772 shares during the quarter. FSA Investment Group LLC's holdings in Broadcom were worth $310,000 as of its most recent filing with the SEC.

Several other hedge funds have also recently added to or reduced their stakes in AVGO. Networth Advisors LLC raised its holdings in Broadcom by 546.2% in the 1st quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer's stock valued at $26,000 after acquiring an additional 71 shares during the last quarter. Core Capital Management & Research inc. acquired a new position in shares of Broadcom during the 2nd quarter worth approximately $31,000. Harborfront Financial Group LLC purchased a new stake in shares of Broadcom in the second quarter valued at approximately $38,000. IMG Wealth Management Inc. purchased a new stake in shares of Broadcom in the second quarter valued at approximately $64,000. Finally, Byrne Asset Management LLC acquired a new stake in shares of Broadcom in the second quarter valued at approximately $84,000. 76.43% of the stock is owned by institutional investors and hedge funds.

Insider Activity at Broadcom

In other news, insider Mark Brazeal sold 25,000 shares of the business's stock in a transaction dated Friday, July 10th. The stock was sold at an average price of $401.33, for a total transaction of $10,033,250.00. Following the completion of the transaction, the insider directly owned 194,989 shares of the company's stock, valued at approximately $78,254,935.37. The trade was a 11.36% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Corporate insiders own 1.90% of the company's stock.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s AI semiconductor revenue is projected to expand sharply, potentially reaching approximately $58 billion in 2026, $115 billion in 2027 and $230 billion in 2028. The company is benefiting from demand for custom accelerators and networking equipment from hyperscalers and AI developers. Broadcom Is Up 5.8% After Unveiling Massive AI Chip Financing Plan for Anthropic
• Positive Sentiment: CEO Hock Tan continues to defend Broadcom’s roughly $350 billion AI-chip outlook, arguing that inference demand and relationships with major customers support sustained growth even as some industry participants call for slower frontier-AI development. Broadcom CEO Holds $350B Outlook Strong
• Positive Sentiment: Analysts reportedly expect Broadcom earnings to rise 71% in fiscal 2026 and 66% in fiscal 2027. Supporters view the stock’s relatively modest annual gain and distance from its high as a potential entry opportunity, while Cathie Wood’s reported $13 million purchase provides an additional bullish signal. Broadcom Is Lagging the Market This Year. Is It a Buy?
• Neutral Sentiment: A large increase in call-option activity and bullish technical analysis indicate traders are positioning for a possible recovery toward the prior high near $495, but these signals do not guarantee fundamental improvement. Broadcom Price Forecast
• Negative Sentiment: Broadcom’s AI financing arrangements, including potential loans and chip-leasing structures connected with Anthropic, have raised concerns about leverage, customer concentration and possible “circular financing.” These risks could make reported AI demand more difficult for investors to assess. Oracle, Broadcom and SpaceX Seek Blockbuster Debt Deals
• Negative Sentiment: At roughly 48 times earnings, Broadcom requires continued exceptional execution to justify its valuation. Some investors remain frustrated that strong AI growth and earnings beats have not consistently translated into share-price gains, increasing sensitivity to any slowdown in hyperscaler spending or custom-chip deliveries. Broadcom: When The Story And The Stock Disagree

Broadcom Stock Up 0.2%

Shares of NASDAQ AVGO opened at $376.51 on Thursday. The stock has a market cap of $1.80 trillion, a P/E ratio of 48.09 and a beta of 1.46. The company has a current ratio of 2.50, a quick ratio of 2.29 and a debt-to-equity ratio of 0.57. Broadcom Inc. has a 12-month low of $289.96 and a 12-month high of $495.00. The business's fifty day simple moving average is $372.35 and its 200-day simple moving average is $382.17.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 EPS for the quarter, topping the consensus estimate 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 during the quarter, compared to analysts' expectations of $29.24 billion. During the same period in the previous year, the firm posted $1.69 EPS. Broadcom's revenue for the quarter was up 85.5% on a year-over-year basis. As a group, equities analysts predict that Broadcom Inc. will post 10.37 EPS for the current fiscal year.

Broadcom Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Monday, September 21st 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, September 21st. Broadcom's dividend payout ratio (DPR) is presently 33.21%.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on the company. BMO Capital Markets boosted their price objective on Broadcom from $455.00 to $575.00 and gave the stock an "outperform" rating in a research note on Thursday, September 3rd. Raymond James Financial reaffirmed an "outperform" rating and issued a $475.00 target price (up from $450.00) on shares of Broadcom in a research note on Thursday, September 3rd. TD Cowen reiterated a "buy" rating and set a $475.00 price target (down from $500.00) on shares of Broadcom in a report on Thursday, September 3rd. BNP Paribas Exane boosted their price target on shares of Broadcom from $675.00 to $715.00 and gave the company an "outperform" rating in a research report on Friday, September 4th. Finally, JPMorgan Chase & Co. reissued a "buy" rating on shares of Broadcom in a report on Thursday, September 3rd. One investment analyst has rated the stock with a Strong Buy rating, thirty-seven have assigned a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $527.20.

Broadcom Profile

Broadcom Inc NASDAQ: AVGO is a global technology company that designs, develops, and supplies semiconductor and infrastructure software products. Its semiconductor solutions support wired and wireless communications, data center networking, broadband access, storage, industrial applications, and other markets.

The company's semiconductor portfolio includes networking and switching products, custom application-specific integrated circuits, wireless connectivity components, radio-frequency devices, optical components, and storage-related solutions.

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