Jupiter Topco LLC Acquires Shares of 19,583,057 Broadcom Inc. $AVGO

Key Points

• Jupiter Topco LLC acquired 19.58 million Broadcom shares worth approximately $7.4 billion, making AVGO its third-largest holding and representing about 0.41% of Broadcom’s outstanding stock.
• Broadcom exceeded quarterly expectations with earnings of $3.32 per share and revenue of $29.59 billion, up 85.5% year over year. The company declared a quarterly dividend of $0.65 per share.
• Analysts remain broadly bullish, with a “Moderate Buy” consensus and a $500.60 average price target, though slightly weaker-than-expected fourth-quarter guidance, valuation concerns and data-center supply constraints remain risks.

Jupiter Topco LLC acquired a new stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) during the 2nd quarter, according to its most recent filing with the SEC. The institutional investor acquired 19,583,057 shares of the semiconductor manufacturer's stock, valued at approximately $7,396,271,000. Broadcom accounts for approximately 3.0% of Jupiter Topco LLC's investment portfolio, making the stock its 3rd largest holding. Jupiter Topco LLC owned approximately 0.41% of Broadcom as of its most recent filing with the SEC.

Other hedge funds and other institutional investors have also modified their holdings of the company. ROSS JOHNSON & Associates LLC raised its stake in Broadcom by 1,320.0% during the fourth quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer's stock worth $25,000 after acquiring an additional 66 shares in the last quarter. Networth Advisors LLC grew its holdings in shares of Broadcom by 546.2% in the 1st quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer's stock worth $26,000 after purchasing an additional 71 shares during the last quarter. SWAN Capital LLC grew its holdings in shares of Broadcom by 261.9% in the 4th quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer's stock worth $26,000 after purchasing an additional 55 shares during the last quarter. Harborfront Financial Group LLC acquired a new stake in shares of Broadcom during the 2nd quarter worth about $38,000. Finally, Cherry Tree Wealth Management LLC increased its position in shares of Broadcom by 44.9% during 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 in the last quarter. Institutional investors own 76.43% of the company's stock.

Broadcom Trading Up 0.2%

Shares of NASDAQ AVGO opened at $357.89 on Friday. Broadcom Inc. has a 1-year low of $289.96 and a 1-year high of $495.00. The company has a 50-day moving average of $383.57 and a two-hundred day moving average of $377.23. The company has a market cap of $1.70 trillion, a PE ratio of 45.71, a P/E/G ratio of 0.68 and a beta of 1.44. The company has a current ratio of 2.50, a quick ratio of 2.01 and a debt-to-equity ratio of 0.57.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its quarterly earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 EPS for the quarter, beating the consensus estimate of $3.22 by $0.10. The business had revenue of $29.59 billion for the quarter, compared to analysts' expectations of $29.24 billion. Broadcom had a net margin of 42.94% and a return on equity of 48.33%. Broadcom's revenue was up 85.5% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.69 earnings per share. As a group, equities analysts expect that Broadcom Inc. will post 10.25 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Monday, September 21st will be given a dividend of $0.65 per share. The ex-dividend date is Monday, September 21st. This represents a $2.60 annualized dividend and a dividend yield of 0.7%. Broadcom's payout ratio is currently 33.21%.

Insider Buying and Selling at Broadcom

In related news, insider Mark Brazeal sold 25,000 shares of the business's stock in a transaction that occurred on 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 sale, the insider directly owned 194,989 shares of the company's stock, valued at $78,254,935.37. The trade was a 11.36% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, 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 completion of the transaction, the director owned 17,426 shares in the company, valued at $6,514,884.36. This represents a 8.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 61,644 shares of company stock worth $24,016,214 in the last 90 days. Corporate insiders own 1.90% of the company's stock.

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.

Analyst Ratings Changes

Several equities analysts recently issued reports on the stock. Morgan Stanley reissued an "overweight" rating and set a $505.00 price target (up from $502.00) on shares of Broadcom in a report on Thursday. DA Davidson set a $350.00 price objective on shares of Broadcom and gave the stock a "neutral" rating in a report on Friday. Citigroup reiterated a "buy" rating and issued a $515.00 target price (up from $500.00) on shares of Broadcom in a research note on Friday. Jefferies Financial Group assumed coverage on Broadcom in a report on Thursday. They issued a "buy" rating on the stock. Finally, Cantor Fitzgerald increased their price target on Broadcom from $525.00 to $600.00 and gave the stock an "overweight" rating in a research report on Thursday. Thirty-one 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, the company presently has an average rating of "Moderate Buy" and a consensus price target of $500.60.

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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