Highland Investment Advisors LLC Takes $1.16 Million Position in Broadcom Inc. $AVGO

Key Points

• Highland Investment Advisors acquired 3,065 Broadcom shares worth approximately $1.16 million, making AVGO about 0.5% of its portfolio. Institutional investors collectively own 76.43% of the company.
• Broadcom reported strong quarterly results, with revenue up 85.5% year over year to $29.59 billion and earnings of $3.32 per share, exceeding analyst estimates. The company also declared a $0.65 quarterly dividend, or $2.60 annually.
• Analysts remain broadly bullish, with a “Moderate Buy” consensus and an average price target of $509.04, though concerns include elevated valuation, customer concentration, execution risks and uncertainty over the pace of AI spending.

Highland Investment Advisors LLC acquired a new position in Broadcom Inc. (NASDAQ:AVGO - Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor acquired 3,065 shares of the semiconductor manufacturer's stock, valued at approximately $1,158,000. Broadcom makes up about 0.5% of Highland Investment Advisors LLC's investment portfolio, making the stock its 29th biggest holding.

Several other institutional investors also recently bought and sold shares of the company. Networth Advisors LLC increased its stake in shares of Broadcom by 546.2% during the first quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer's stock valued at $26,000 after buying an additional 71 shares during the period. Harborfront Financial Group LLC bought a new stake in shares of Broadcom in the 2nd quarter valued at about $38,000. Cherry Tree Wealth Management LLC lifted its position in shares of Broadcom by 44.9% in the 4th quarter. Cherry Tree Wealth Management LLC now owns 129 shares of the semiconductor manufacturer's stock worth $45,000 after purchasing an additional 40 shares during the period. Godfrey Financial Associates Inc. bought a new position in shares of Broadcom during the fourth quarter valued at approximately $56,000. Finally, IMG Wealth Management Inc. bought a new position in shares of Broadcom during the second quarter valued at approximately $64,000. 76.43% of the stock is currently owned by hedge funds and other institutional investors.

Broadcom News Summary

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom remains a favored way to gain exposure to AI while receiving dividend income. Its custom AI-chip business is expected to continue expanding rapidly as hyperscalers and AI companies build additional computing capacity. 3 Stocks That Offer AI Exposure and Dividends
• Positive Sentiment: CEO Hock Tan reportedly said demand already exceeds Broadcom’s $115 billion AI forecast, with AI revenue projected to double in fiscal 2027 and again in 2028. Accelerating shipments of Ironwood chips to Anthropic could further strengthen Broadcom’s custom-hardware opportunity. Broadcom CEO Hock Tan Says Demand Already Exceeds Broadcom’s $115 Billion AI Forecast
• Positive Sentiment: Mizuho analyst Vijay Rakesh expects AVGO to rally toward a new all-time high over the next 12 months, supporting the longer-term bullish case despite recent weakness. Wall Street Sets Broadcom Stock Price for the Next 12 Months
• Neutral Sentiment: Analyst commentary remains divided: Broadcom is viewed as a major beneficiary of AI demand, but Vertiv is considered better positioned on valuation, earnings momentum and near-term upside. Vertiv vs. Broadcom: Which AI Infrastructure Stock Has More Upside?
• Negative Sentiment: Investors are questioning whether AI spending can maintain its current pace. Broadcom also faces concerns about elevated valuation, customer concentration, margins and execution, while reports cite a failure to meet Wall Street’s fiscal fourth-quarter revenue expectations. Marvell Falls as AI Pacing Debate Collides With Fed Week

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on AVGO. Zacks Research downgraded shares of Broadcom from a "strong-buy" rating to a "hold" rating in a research note on Thursday, May 21st. Susquehanna reaffirmed a "positive" rating and set a $490.00 target price (up from $450.00) on shares of Broadcom in a research report on Thursday, May 28th. Oppenheimer reiterated an "outperform" rating and issued a $535.00 price target (up from $450.00) on shares of Broadcom in a report on Thursday, June 4th. Mizuho boosted their price target on Broadcom from $480.00 to $530.00 and gave the stock an "outperform" rating in a research report on Thursday, June 4th. Finally, Cantor Fitzgerald upped their price objective on Broadcom from $525.00 to $600.00 and gave the stock an "overweight" rating in a research note on Thursday, September 3rd. One research analyst has rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $509.04.

Broadcom Trading Down 4.8%

Shares of NASDAQ:AVGO opened at $344.72 on Tuesday. The business's 50-day moving average is $382.45 and its 200 day moving average is $378.79. Broadcom Inc. has a 1 year low of $289.96 and a 1 year high of $495.00. The firm has a market capitalization of $1.65 trillion, a P/E ratio of 44.03 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 2.29.

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, 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 business had revenue of $29.59 billion during the quarter, compared to the consensus estimate of $29.24 billion. During the same quarter last year, the company earned $1.69 earnings per share. The company's quarterly revenue was up 85.5% on a year-over-year basis. On average, research analysts predict that Broadcom Inc. will post 10.36 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Monday, September 21st will be given a $0.65 dividend. This represents a $2.60 annualized dividend and a dividend yield of 0.8%. The ex-dividend date of this dividend is Monday, September 21st. Broadcom's dividend payout ratio (DPR) is presently 33.21%.

Insider Buying and Selling

In related news, Director Gayla J. Delly sold 1,890 shares of Broadcom stock in a transaction dated Wednesday, July 8th. The stock was sold at an average price of $385.38, for a total transaction of $728,368.20. Following the completion of the sale, the director owned 31,326 shares of the company's stock, valued at $12,072,413.88. The trade was a 5.69% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, 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 transaction of $598,923.72. Following the completion of the sale, the director directly owned 17,426 shares in the company, valued at $6,514,884.36. This trade represents a 8.42% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 58,317 shares of company stock worth $22,745,733 in the last three months. Corporate insiders own 1.90% of the company's stock.

Broadcom Profile

Broadcom Inc NASDAQ: AVGO designs, develops and supplies semiconductor and infrastructure software products for businesses, telecommunications providers and other organizations worldwide. Its semiconductor portfolio includes networking and connectivity components, custom application-specific integrated circuits, broadband and wireless communications products, storage adapters, optical components, and industrial solutions.

The company also provides enterprise infrastructure software through businesses including VMware, which offers virtualization and private- and hybrid-cloud solutions; mainframe and enterprise software; and cybersecurity products.

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.