Jericho Financial LLP Acquires New Shares in Broadcom Inc. $AVGO

Key Points

• Jericho Financial LLP acquired 24,766 Broadcom shares worth approximately $9.36 million in the second quarter, making AVGO about 4.8% of its portfolio. Institutional investors collectively own 76.43% of Broadcom.
• Broadcom exceeded quarterly expectations with $29.59 billion in revenue and $3.32 in EPS, while revenue rose 85.5% year over year. Analysts maintain a “Moderate Buy” consensus and an average price target of $501.77.
• The company declared a quarterly dividend of $0.65 per share, equivalent to a 0.7% annualized yield. Despite strong AI growth prospects, investors face risks from below-consensus forward revenue guidance, supply constraints, customer concentration and insider selling.

Jericho Financial LLP acquired a new stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm acquired 24,766 shares of the semiconductor manufacturer's stock, valued at approximately $9,355,000. Broadcom comprises about 4.8% of Jericho Financial LLP's holdings, making the stock its 6th largest holding.

Other large investors have also added to or reduced their stakes in the company. Cornerstone Advisors LLC purchased a new position in Broadcom in the 2nd quarter worth about $92,522,000. Bank of America Corp DE raised its holdings in Broadcom by 1.5% in the first 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 stake in shares of Broadcom during the second quarter valued at about $3,302,000. 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 worth $34,061,000 after purchasing an additional 62,050 shares in the last quarter. Finally, First Bank & Trust raised its position in shares of Broadcom by 17.2% in the 2nd quarter. First Bank & Trust now owns 10,503 shares of the semiconductor manufacturer's stock valued at $3,968,000 after purchasing an additional 1,545 shares during the last quarter. Institutional investors own 76.43% of the company's stock.

Insider Activity at Broadcom

In other Broadcom news, Director Justine Page sold 1,602 shares of the stock in a transaction that occurred 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 sale, the director directly owned 17,426 shares in the company, valued at $6,514,884.36. This represents a 8.42% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Harry You bought 1,000 shares of the stock in a transaction that occurred on Thursday, June 11th. The shares were bought at an average cost of $373.57 per share, with a total value of $373,570.00. Following the completion of the purchase, the director directly owned 38,466 shares in the company, valued at $14,369,743.62. This represents a 2.67% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last ninety days, insiders sold 61,644 shares of company stock worth $24,016,214. 1.90% of the stock is owned by corporate insiders.

Broadcom Stock Performance

NASDAQ AVGO opened at $357.16 on Friday. 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 stock's fifty day moving average is $383.71 and its two-hundred day moving average is $377.36. The firm has a market capitalization of $1.70 trillion, a P/E ratio of 45.61, a price-to-earnings-growth ratio of 0.70 and a beta of 1.44. Broadcom Inc. has a fifty-two week low of $289.96 and a fifty-two week high of $495.00.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its quarterly earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 EPS for the quarter, topping the consensus estimate of $3.22 by $0.10. The business had revenue of $29.59 billion for the quarter, compared to analyst estimates of $29.24 billion. Broadcom had a return on equity of 50.76% and a net margin of 42.94%.The company's quarterly revenue was up 85.5% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.69 EPS. On average, research analysts anticipate that Broadcom Inc. will post 10.24 earnings per share for the current year.

Broadcom Dividend Announcement

The firm 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 dividend of $0.65 per share. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend is Monday, September 21st. Broadcom's dividend payout ratio (DPR) is presently 43.33%.

Wall Street Analyst Weigh In

AVGO has been the subject of a number of research reports. Cantor Fitzgerald lifted their target price on Broadcom from $525.00 to $600.00 and gave the stock an "overweight" rating in a report on Thursday. Jefferies Financial Group began coverage on Broadcom in a research note on Thursday. They set a "buy" rating for the company. Susquehanna reissued a "positive" rating and issued a $490.00 price objective (up from $450.00) on shares of Broadcom in a report on Thursday, May 28th. UBS Group lowered Broadcom from a "buy" rating to a "hold" rating in a report on Thursday. Finally, Lake Street Capital upgraded Broadcom to a "buy" rating in a research report on Thursday. Thirty-one equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $501.77.

Broadcom News Roundup

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom reported fiscal third-quarter revenue of $29.6 billion, up 86% year over year, and non-GAAP EPS of $3.32, exceeding estimates of $29.43 billion and $3.22. AI semiconductor revenue surged 221% to $16.7 billion, while free cash flow reached $13.7 billion. Broadcom fiscal third-quarter results
• Positive Sentiment: Management raised its fiscal 2027 AI revenue outlook to $115 billion and projected $230 billion in fiscal 2028, alongside confidence in fiscal 2027 EPS of at least $30. Analysts including Macquarie, Cantor Fitzgerald, BMO and Rosenblatt responded with upgrades or higher price targets, supporting the long-term AI investment case. Broadcom AI growth outlook
• Neutral Sentiment: Broadcom declared a quarterly dividend of $0.65 per share, payable September 30 to shareholders of record September 21. The dividend provides modest income but is unlikely to drive the stock’s near-term performance. Broadcom dividend announcement
• Negative Sentiment: Fiscal fourth-quarter revenue guidance of approximately $34.8 billion was below Wall Street’s roughly $35.0 billion expectation. Investors viewed the outlook as insufficient given AVGO’s premium valuation and elevated AI expectations, overshadowing the earnings beat. Broadcom forecasts quarterly revenue below estimates
• Negative Sentiment: Investors are also weighing supply constraints involving power, land, chips and substrates, along with customer concentration among major hyperscalers such as Alphabet, Anthropic and OpenAI. Competition from custom-chip rivals, including Marvell, adds uncertainty to the ambitious long-term forecast. Broadcom AI supply constraints
• Negative Sentiment: Recent disclosures that Third Point exited its Broadcom position and that company insiders have overwhelmingly sold shares may reinforce profit-taking concerns, although these transactions are not necessarily indicative of deteriorating fundamentals. Dan Loeb exits Broadcom position

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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