Gables Capital Management Inc. Acquires New Holdings in Broadcom Inc. $AVGO

Key Points

• Gables Capital Management acquired 2,550 Broadcom shares during the second quarter, valued at approximately $963,000. Institutional investors and hedge funds collectively own 76.43% of the stock.
• Analyst sentiment remains positive, with 29 Buy ratings and four Holds producing a “Moderate Buy” consensus and average price target of $491.97. However, investors remain concerned about competition from hyperscalers’ internally developed chips and Broadcom’s potential increase in leverage.
• Broadcom’s latest quarterly results exceeded expectations, with adjusted EPS of $2.44 and revenue of $22.19 billion, up 47.9% year over year. The company also declared a quarterly dividend of $0.65 per share, representing a 0.7% annualized yield.

Gables Capital Management Inc. purchased a new stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) during the second quarter, according to its most recent Form 13F filing with the SEC. The fund purchased 2,550 shares of the semiconductor manufacturer's stock, valued at approximately $963,000.

Several other large investors have also recently made changes to their positions in the stock. Norges Bank purchased a new position in shares of Broadcom during the fourth quarter worth $24,252,196,000. Bank of New York Mellon Corp purchased a new stake in shares of Broadcom in the 2nd quarter valued at $10,528,191,000. Deutsche Bank AG purchased a new stake in shares of Broadcom in the 2nd quarter valued at $5,661,216,000. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in Broadcom during the 2nd quarter worth about $4,457,583,000. Finally, Cardano Risk Management B.V. lifted its stake in Broadcom by 895.2% during the 4th quarter. Cardano Risk Management B.V. now owns 12,689,800 shares of the semiconductor manufacturer's stock worth $4,391,940,000 after acquiring an additional 11,414,701 shares in the last quarter. 76.43% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

AVGO has been the subject of a number of research reports. Wall Street Zen cut shares of Broadcom from a "strong-buy" rating to a "buy" rating in a report on Saturday, July 18th. Dbs Bank upgraded shares of Broadcom to a "moderate buy" rating in a report on Thursday, June 18th. Citigroup reissued a "buy" rating on shares of Broadcom in a research report on Thursday, June 4th. Mizuho boosted their price target on shares of Broadcom from $480.00 to $530.00 and gave the stock an "outperform" rating in a research note on Thursday, June 4th. Finally, Erste Group Bank reaffirmed a "hold" rating on shares of Broadcom in a research report on Tuesday, July 7th. Twenty-nine analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $491.97.

Key Stories Impacting 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 Stock Down 0.7%

Broadcom stock opened at $368.79 on Friday. The stock 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 current ratio of 2.24 and a quick ratio of 2.01. The stock's fifty day moving average is $385.07 and its two-hundred day moving average is $376.26. Broadcom Inc. has a 1-year low of $287.17 and a 1-year high of $495.00.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its quarterly earnings data on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, beating 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 quarter in the prior year, the business posted $1.58 EPS. The business's revenue for the quarter was up 47.9% on a year-over-year basis. On average, sell-side analysts expect that Broadcom Inc. will post 10.24 EPS for the current fiscal year.

Broadcom Dividend Announcement

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

Insider Transactions at Broadcom

In other news, insider Mark David 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 value of $10,033,250.00. Following the completion of the sale, 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 position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Gayla J. Delly sold 1,890 shares of the business's stock in a transaction that occurred on Wednesday, July 8th. The shares were sold at an average price of $385.38, for a total value of $728,368.20. Following the completion of the sale, the director owned 31,326 shares of the company's stock, valued at approximately $12,072,413.88. This represents a 5.69% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 61,644 shares of company stock valued at $24,016,214 over the last quarter. Company insiders own 1.90% of the company's stock.

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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