Herbst Group LLC Makes New Investment in Broadcom Inc. $AVGO

Key Points

• Herbst Group LLC opened a new Broadcom position in the second quarter, buying 2,400 shares valued at approximately $907,000. Institutional investors collectively own 76.43% of the company.
• Broadcom reported quarterly EPS of $2.44, exceeding the $2.40 consensus estimate, while revenue rose 47.9% year over year to $22.19 billion. The company also pays a quarterly dividend of $0.65 per share, equivalent to a 0.6% yield.
• Analysts maintain a broadly positive outlook, with 28 Buy ratings and four Holds and an average price target of $493.24. Strong AI infrastructure demand remains a key catalyst, though elevated valuation and broader market risks could pressure the stock.

Herbst Group LLC purchased a new position in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) in the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund purchased 2,400 shares of the semiconductor manufacturer's stock, valued at approximately $907,000.

Other hedge funds also recently modified their holdings of the company. Bank of America Corp DE lifted its position in shares of Broadcom by 1.5% in 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 acquiring an additional 894,564 shares during the period. Bartlett & CO. Wealth Management LLC increased its position in shares of Broadcom by 129.3% during 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. Western Financial Corp CA increased its position in shares of Broadcom by 90.5% during the fourth quarter. Western Financial Corp CA now owns 6,481 shares of the semiconductor manufacturer's stock valued at $2,243,000 after purchasing an additional 3,079 shares during the period. Fifth Lane Capital LP raised its stake in shares of Broadcom by 77.8% in the fourth quarter. Fifth Lane Capital LP now owns 4,000 shares of the semiconductor manufacturer's stock valued at $1,384,000 after purchasing an additional 1,750 shares in the last quarter. Finally, Robinhood Asset Management LLC bought a new position in Broadcom in the fourth quarter worth $20,514,000. 76.43% of the stock is owned by institutional investors.

Broadcom Price Performance

Shares of NASDAQ:AVGO opened at $427.76 on Monday. Broadcom Inc. has a 52 week low of $281.87 and a 52 week high of $495.00. The company has a debt-to-equity ratio of 0.71, a quick ratio of 2.01 and a current ratio of 2.24. The company's fifty day moving average is $392.99 and its 200-day moving average is $370.59. The company has a market capitalization of $2.04 trillion, a PE ratio of 71.29, a P/E/G ratio of 0.82 and a beta of 1.45.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its 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 net margin of 38.85% and a return on equity of 41.61%. The business had revenue of $22.19 billion during the quarter, compared to analysts' expectations of $22.13 billion. During the same quarter last year, the company posted $1.58 EPS. The firm's revenue for the quarter was up 47.9% on a year-over-year basis. Equities research analysts predict that Broadcom Inc. will post 10.24 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Monday, June 22nd were issued a dividend of $0.65 per share. The ex-dividend date of this dividend was Monday, June 22nd. This represents a $2.60 annualized dividend and a dividend yield of 0.6%. Broadcom's dividend payout ratio (DPR) is presently 43.33%.

Analyst Ratings Changes

A number of equities analysts have recently issued reports on AVGO shares. Benchmark increased their price objective on shares of Broadcom from $485.00 to $545.00 and gave the company a "buy" rating in a research note on Thursday, June 4th. JPMorgan Chase & Co. upped their target price on shares of Broadcom from $500.00 to $580.00 and gave the company an "overweight" rating in a research note on Thursday, June 4th. DA Davidson increased their price target on shares of Broadcom from $375.00 to $400.00 and gave the stock a "neutral" rating in a research report on Thursday, June 4th. Susquehanna restated a "positive" rating and set a $490.00 price target (up from $450.00) on shares of Broadcom in a research note on Thursday, May 28th. Finally, Bank of America lifted their price objective on Broadcom from $450.00 to $530.00 and gave the company a "buy" rating in a report on Thursday, June 4th. Twenty-eight research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat.com, Broadcom presently has an average rating of "Moderate Buy" and an average price target of $493.24.

Key Stories Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: AI demand remains the primary catalyst. Analysts highlighted Broadcom’s record quarterly revenue of approximately $22.2 billion, 79% growth in semiconductor revenue, 143% growth in AI semiconductor revenue to $10.8 billion and more than $30 billion in AI bookings. The figures support the view that hyperscaler spending on custom chips, networking and connectivity is still expanding. Is the AI Selloff a Buying Opportunity? The Data Says Yes
• Positive Sentiment: Broadcom is being positioned as a beneficiary of AI infrastructure bottlenecks. Commentary identified networking equipment, optical interconnects and power delivery as supply-constrained areas, with Broadcom named among companies that could benefit as data-center construction accelerates. Other reports described the company as a leading AI infrastructure stock and a potentially attractive long-term chip investment. Beyond NVIDIA and GPUs: The Next AI and Quantum Winners Leading 2026 3 AI Infrastructure Stocks That Could Make You Rich in August
• Positive Sentiment: Product updates add support for Broadcom’s software business. New capabilities for VMware vDefend and Avi Load Balancer are intended to improve cybersecurity, performance and operational efficiency in private-cloud environments, potentially strengthening Broadcom’s infrastructure-software offering as enterprises prepare for AI workloads. Broadcom Enables Enterprises to Strengthen Multi-Layer Cyber Defense and Operational Efficiency
• Neutral Sentiment: Broadcom was included in stock screens favoring companies with high returns on equity and strong earnings growth. The favorable fundamental profile supports investor interest, but the articles offered no new company-specific financial data. 5 High ROE Stocks to Buy as Oil Price Surge Hits Short-Term Rally
• Negative Sentiment: Risks include stretched valuation and broader-market concerns. Coverage warned that AI stocks may face a normal pullback after a strong rally, while oil-price increases could revive inflation concerns. One investment firm also disclosed that it sold 3,867 Broadcom shares, though the transaction appears minor relative to the company’s overall market value. SCS Capital Trims Broadcom Stake

Insider Activity

In other news, Director Harry L. You bought 1,000 shares of the business's stock in a transaction dated Thursday, June 11th. The stock was bought at an average price of $373.57 per share, for a total transaction of $373,570.00. Following the completion of the purchase, the director owned 38,466 shares of the company's stock, valued at approximately $14,369,743.62. The trade was a 2.67% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Justine Page sold 1,602 shares of the business's stock in a transaction that occurred on Monday, June 29th. The stock was sold at an average price of $373.86, for a total value of $598,923.72. Following the completion of the transaction, the director directly owned 17,426 shares in the company, valued at $6,514,884.36. The trade was a 8.42% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 61,644 shares of company stock worth $24,016,214. Corporate 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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