Harvey Capital Management Inc. Purchases New Position in Broadcom Inc. $AVGO

Key Points

• Harvey Capital Management bought a new 1,530-share Broadcom position worth approximately $578,000 in the second quarter. Hedge funds and institutional investors collectively own 76.43% of Broadcom.
• Broadcom exceeded quarterly expectations, reporting adjusted EPS of $3.32 versus $3.22 expected and revenue of $29.59 billion, up 85.5% year over year. Analysts maintain a broadly positive outlook, with a consensus “Moderate Buy” rating and average price target of $500.60.
• Broadcom declared a quarterly dividend of $0.65 per share, equivalent to a $2.60 annualized payout and a 0.7% yield. Despite strong AI demand, concerns include slightly below-consensus fourth-quarter guidance, potential margin pressure and customer concentration.

Harvey Capital Management Inc. bought a new stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) during the second quarter, according to its most recent disclosure with the SEC. The firm bought 1,530 shares of the semiconductor manufacturer's stock, valued at approximately $578,000.

Other hedge funds have also recently added to or reduced their stakes in the company. N10 Assets LLC acquired a new stake in shares of Broadcom in the second quarter valued at approximately $7,888,000. Coastal Bridge Advisors LLC lifted its position in Broadcom by 8.2% during the 2nd quarter. Coastal Bridge Advisors LLC now owns 19,028 shares of the semiconductor manufacturer's stock worth $7,188,000 after acquiring an additional 1,438 shares during the period. Triton Financial Group Inc acquired a new stake in Broadcom during the 2nd quarter worth approximately $2,835,000. Stonehage Fleming Financial Services Holdings Ltd grew its stake in shares of Broadcom by 14.8% in the 2nd quarter. Stonehage Fleming Financial Services Holdings Ltd now owns 610,705 shares of the semiconductor manufacturer's stock valued at $230,694,000 after purchasing an additional 78,556 shares during the last quarter. Finally, Jacobs Equity LLC grew its stake in shares of Broadcom by 81.4% in the 2nd quarter. Jacobs Equity LLC now owns 2,510 shares of the semiconductor manufacturer's stock valued at $948,000 after purchasing an additional 1,126 shares during the last quarter. Hedge funds and other institutional investors own 76.43% of the company's stock.

Insiders Place Their Bets

In other Broadcom news, Director Justine Page sold 1,602 shares of Broadcom 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 owned 17,426 shares in the company, valued at $6,514,884.36. This trade represents a 8.42% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Harry You bought 1,000 shares of Broadcom stock in a transaction that occurred on Thursday, June 11th. The stock was purchased at an average price of $373.57 per share, for a total transaction 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. The trade was a 2.67% increase in their position. The SEC filing for this purchase provides additional information. Over the last ninety days, insiders have sold 61,644 shares of company stock valued at $24,016,214. 1.90% of the stock is owned by company insiders.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on AVGO shares. Benchmark increased their price target on Broadcom from $485.00 to $545.00 and gave the stock a "buy" rating in a report on Thursday, June 4th. The Goldman Sachs Group reissued a "buy" rating on shares of Broadcom in a research note on Monday, August 3rd. DA Davidson set a $350.00 price target on shares of Broadcom and gave the stock a "neutral" rating in a research note on Friday. Wall Street Zen cut shares of Broadcom from a "strong-buy" rating to a "buy" rating in a report on Saturday, July 18th. Finally, Royal Bank Of Canada assumed coverage on shares of Broadcom in a research report on Thursday. They issued an "outperform" rating for the company. Thirty-one investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat, Broadcom has a consensus rating of "Moderate Buy" and an average price target of $500.60.

Broadcom Trading Down 0.0%

Shares of AVGO opened at $357.89 on Monday. Broadcom Inc. has a 1-year low of $289.96 and a 1-year high of $495.00. The company has a debt-to-equity ratio of 0.57, a current ratio of 2.50 and a quick ratio of 2.29. The firm has a 50 day simple moving average of $383.57 and a 200-day simple moving average of $377.59. The stock has a market cap of $1.70 trillion, a price-to-earnings ratio of 45.71 and a beta of 1.44.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its quarterly earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share for the quarter, topping the consensus estimate of $3.22 by $0.10. The company had revenue of $29.59 billion during 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 was up 85.5% compared to the same quarter last year. During the same quarter last year, the business posted $1.69 earnings per share. Equities analysts forecast that Broadcom Inc. will post 10.25 EPS for the current fiscal year.

Broadcom Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Monday, September 21st will be issued a $0.65 dividend. The ex-dividend date is Monday, September 21st. This represents a $2.60 annualized dividend and a yield of 0.7%. Broadcom's payout ratio is 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.

Broadcom 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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