GSG Advisors LLC Buys Shares of 6,090 Broadcom Inc. $AVGO

Key Points

• GSG Advisors initiated a Broadcom position by purchasing 6,090 shares valued at approximately $2.3 million. Institutional investors and hedge funds collectively own 76.43% of the company.
• Broadcom exceeded quarterly expectations, reporting adjusted earnings of $3.32 per share and revenue of $29.59 billion, with revenue up 85.5% year over year. The company declared a quarterly dividend of $0.65 per share, representing a 0.7% yield.
• Analyst sentiment remains positive, with a consensus “Moderate Buy” rating and an average price target of $500.60, although concerns include elevated valuation, margin pressure, customer concentration and slightly weaker-than-expected guidance.

GSG Advisors LLC purchased a new position in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund purchased 6,090 shares of the semiconductor manufacturer's stock, valued at approximately $2,301,000. Broadcom comprises approximately 0.5% of GSG Advisors LLC's holdings, making the stock its 28th biggest position.

A number of other large investors have also recently added to or reduced their stakes in the business. Cornerstone Advisors LLC purchased a new stake in Broadcom in the 2nd quarter worth approximately $92,522,000. Bank of America Corp DE increased its position in Broadcom by 1.5% during the 1st quarter. Bank of America Corp DE now owns 58,737,097 shares of the semiconductor manufacturer's stock worth $18,179,719,000 after purchasing an additional 894,564 shares in the last quarter. Clear Harbor Asset Management LLC purchased a new position in shares of Broadcom in the 2nd quarter valued at $3,302,000. Bartlett & CO. Wealth Management LLC raised its position in Broadcom by 129.3% in the first quarter. Bartlett & CO. Wealth Management LLC now owns 110,048 shares of the semiconductor manufacturer's stock valued at $34,061,000 after purchasing an additional 62,050 shares during the period. Finally, First Bank & Trust lifted its position in Broadcom by 17.2% during 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 owned by institutional investors and hedge funds.

Broadcom Stock Performance

Shares of AVGO opened at $357.89 on Friday. The company has a 50-day moving average of $383.57 and a two-hundred day moving average of $377.23. The stock has a market cap of $1.70 trillion, a price-to-earnings ratio of 45.71, a PEG ratio of 0.68 and a beta of 1.44. The company has a debt-to-equity ratio of 0.57, a current ratio of 2.50 and a quick ratio of 2.01. Broadcom Inc. has a one year low of $289.96 and a one year high of $495.00.

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

Broadcom Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Monday, September 21st will be paid a dividend of $0.65 per share. The ex-dividend date of this dividend is Monday, September 21st. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.7%. Broadcom's dividend payout ratio (DPR) is 43.33%.

Analyst Upgrades and Downgrades

AVGO has been the subject of a number of analyst reports. Morgan Stanley reissued an "overweight" rating and issued a $505.00 price target (up from $502.00) on shares of Broadcom in a report on Thursday. The Goldman Sachs Group reissued a "buy" rating on shares of Broadcom in a research note on Monday, August 3rd. JPMorgan Chase & Co. raised their price target on Broadcom from $500.00 to $580.00 and gave the company an "overweight" rating in a report on Thursday, June 4th. Truist Financial cut their price objective on shares of Broadcom from $550.00 to $520.00 and set a "buy" rating on the stock in a research note on Thursday. Finally, Erste Group Bank reiterated a "hold" rating on shares of Broadcom in a research report on Tuesday, July 7th. Thirty-one investment 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 company has an average rating of "Moderate Buy" and a consensus price target of $500.60.

Insider Activity at Broadcom

In other news, 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 transaction, the director directly owned 17,426 shares of the company's stock, valued at approximately $6,514,884.36. This represents a 8.42% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Harry L. You bought 1,000 shares of the company's stock in a transaction on Thursday, June 11th. The stock was purchased at an average cost of $373.57 per share, for a total transaction of $373,570.00. Following the completion of the transaction, the director owned 38,466 shares in the company, valued at approximately $14,369,743.62. The trade was a 2.67% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last quarter, insiders have sold 61,644 shares of company stock valued at $24,016,214. Insiders own 1.90% of the company's stock.

More Broadcom News

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.

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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