Johnson Wealth Management LLC Takes $538,000 Position in Broadcom Inc. $AVGO

Key Points

• Johnson Wealth Management initiated a roughly $538,000 position in Broadcom, buying 1,423 shares during the second quarter. Broadcom now represents about 0.2% of the firm’s portfolio.
• Institutional ownership remains high at 76.43%, while analysts maintain a generally positive outlook: Broadcom has a “Moderate Buy” consensus rating and an average price target of $491.97.
• Broadcom reported 47.9% year-over-year quarterly revenue growth and earnings above expectations, supported by AI infrastructure demand. However, investors face risks from customer concentration, elevated valuation, potential margin pressure, and recent insider selling.

Johnson Wealth Management LLC 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 1,423 shares of the semiconductor manufacturer's stock, valued at approximately $538,000. Broadcom comprises about 0.2% of Johnson Wealth Management LLC's holdings, making the stock its 19th largest position.

Several other hedge funds and other institutional investors have also recently bought and sold shares of AVGO. Northstar Financial Companies Inc. purchased a new stake in shares of Broadcom in the 2nd quarter valued at about $581,000. Tillman Hartley LLC purchased a new position in Broadcom during the 2nd quarter worth approximately $499,000. Gould Asset Management LLC CA acquired a new position in Broadcom during the second quarter worth approximately $2,222,000. Arrowroot Family Office LLC purchased a new stake in Broadcom in the second quarter valued at approximately $253,000. Finally, Zeit Capital LLC purchased a new stake in Broadcom in the second quarter valued at approximately $113,000. 76.43% of the stock is currently owned by institutional investors and hedge funds.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Analyst support remains strong: BMO initiated coverage with an Outperform rating and a $455 price target, while RBC reaffirmed its Sector Perform rating with a $400 target—both implying potential upside from the recently reported trading level. BMO starts Broadcom at Outperform with $455 target
• Positive Sentiment: AI infrastructure demand remains the core bullish thesis: Broadcom is positioned to benefit from custom AI accelerators, networking equipment, and the shift toward inference and agentic AI workloads. Commentary also suggests a potential “next $100 billion” AI business opportunity if hyperscaler demand continues. Broadcom’s next $100 billion AI business is taking shape
• Positive Sentiment: VMware commercial traction is encouraging: Rackspace launched a managed multitenant cloud based on Broadcom’s VMware Cloud Foundation 9.1, supporting regulated workloads, Kubernetes, and AI applications. Broadcom debuts VMware Cloud Foundation 9.1
• Neutral Sentiment: Earnings are the near-term catalyst: Investors are awaiting Broadcom’s results and guidance for evidence that AI demand, custom-chip growth, and VMware integration can offset rising expectations. Its prior quarter showed 47.9% year-over-year revenue growth and earnings above consensus.
• Negative Sentiment: Customer concentration is a key risk: Analysts caution that dependence on a small number of large hyperscale customers could make revenue vulnerable to spending changes, in-house chip development, or order delays. Broadcom's real risk is its customer list
• Negative Sentiment: Valuation and financial concerns are weighing on sentiment: Broadcom’s premium multiple, potential margin contraction, vendor-financing expansion, and reports of increased credit-default-swap concerns have raised questions about execution and balance-sheet risk. Broadcom Q3 earnings preview

Wall Street Analyst Weigh In

Several analysts recently commented on AVGO shares. Erste Group Bank reiterated a "hold" rating on shares of Broadcom in a research report on Tuesday, July 7th. Jefferies Financial Group set a $550.00 price objective on shares of Broadcom and gave the stock a "buy" rating in a research report on Thursday, June 4th. Wall Street Zen lowered shares of Broadcom from a "strong-buy" rating to a "buy" rating in a research note on Saturday, July 18th. Dbs Bank raised shares of Broadcom to a "moderate buy" rating in a report on Thursday, June 18th. Finally, Royal Bank Of Canada reiterated a "sector perform" rating and set a $400.00 target price on shares of Broadcom in a research note on Wednesday. Twenty-nine research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat, Broadcom presently has a consensus rating of "Moderate Buy" and an average price target of $491.97.

Insider Activity at Broadcom

In related news, Director Justine Page sold 1,602 shares of the business's stock in a transaction dated 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 owned 17,426 shares of the company's stock, valued at approximately $6,514,884.36. The trade was a 8.42% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, insider Mark David Brazeal sold 25,000 shares of the stock in a transaction dated Friday, July 10th. The shares were sold at an average price of $401.33, for a total transaction of $10,033,250.00. Following the completion of the transaction, the insider directly owned 194,989 shares of the company's stock, valued at approximately $78,254,935.37. This trade represents a 11.36% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 61,644 shares of company stock valued at $24,016,214 over the last 90 days. Company insiders own 1.90% of the company's stock.

Broadcom Trading Down 0.3%

NASDAQ AVGO opened at $355.59 on Thursday. The company has a quick ratio of 2.01, a current ratio of 2.24 and a debt-to-equity ratio of 0.71. The stock has a market capitalization of $1.69 trillion, a P/E ratio of 59.27, a P/E/G ratio of 0.68 and a beta of 1.45. Broadcom Inc. has a 52-week low of $287.17 and a 52-week high of $495.00. The firm has a 50-day moving average price of $386.72 and a 200 day moving average price of $376.03.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.40 by $0.04. The company had revenue of $22.19 billion for the quarter, compared to analysts' expectations of $22.13 billion. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.The firm's quarterly revenue was up 47.9% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.58 EPS. Equities research analysts expect that Broadcom Inc. will post 10.24 EPS for the current year.

Broadcom Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Monday, June 22nd were issued a $0.65 dividend. The ex-dividend date of this dividend was Monday, June 22nd. This represents a $2.60 dividend on an annualized basis and a yield of 0.7%. Broadcom's dividend payout ratio (DPR) is 43.33%.

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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