Legal & General Group Plc Acquires Shares of 31,762,138 Broadcom Inc. $AVGO

Key Points

• Legal & General Group Plc acquired 31.76 million Broadcom shares worth approximately $12.0 billion, making Broadcom its sixth-largest portfolio holding at 2.5% and representing about 0.67% of Broadcom’s outstanding stock.
• Broadcom beat quarterly expectations with adjusted EPS of $3.32 and revenue of $29.59 billion, up 85.5% year over year. AI semiconductor revenue surged 221% to $16.7 billion, although the company’s slightly below-consensus fourth-quarter revenue outlook raised concerns about supply constraints, margins and customer concentration.
• Analysts maintain a broadly positive view, with 31 Buy ratings and an average price target of $500.60 versus a recent share price of $357.89. Broadcom also declared a quarterly dividend of $0.65 per share, equivalent to a 0.7% annualized yield.

Legal & General Group Plc bought a new position in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor bought 31,762,138 shares of the semiconductor manufacturer's stock, valued at approximately $11,998,148,000. Broadcom comprises approximately 2.5% of Legal & General Group Plc's investment portfolio, making the stock its 6th largest position. Legal & General Group Plc owned about 0.67% of Broadcom at the end of the most recent quarter.

A number of other large investors have also recently modified their holdings of AVGO. 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. SWAN Capital LLC boosted its stake in shares of Broadcom by 261.9% in the 4th quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer's stock valued at $26,000 after purchasing an additional 55 shares in the last quarter. Networth Advisors LLC grew its holdings in shares of Broadcom by 546.2% during the 1st quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer's stock valued at $26,000 after purchasing an additional 71 shares during the last quarter. Harborfront Financial Group LLC bought a new stake in shares of Broadcom during the 2nd quarter valued at approximately $38,000. Finally, Cherry Tree Wealth Management LLC increased its position in 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 and hedge funds own 76.43% of the company's stock.

Broadcom Price Performance

AVGO stock opened at $357.89 on Friday. The company has a market capitalization of $1.70 trillion, a P/E ratio of 45.71, a PEG ratio of 0.68 and a beta of 1.44. The company has a fifty day moving average price of $383.57 and a 200-day moving average price of $377.23. The company has a debt-to-equity ratio of 0.57, a quick ratio of 2.01 and a current ratio of 2.50. Broadcom Inc. has a 52-week low of $289.96 and a 52-week high of $495.00.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its quarterly earnings data 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. The company 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 for the quarter was up 85.5% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.69 earnings per share. As a group, equities analysts expect that Broadcom Inc. will post 10.25 EPS for the current year.

Broadcom Dividend Announcement

The business also recently disclosed 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. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date is Monday, September 21st. Broadcom's dividend payout ratio (DPR) is 43.33%.

More Broadcom News

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.

Insider Buying and Selling

In related news, insider Mark Brazeal sold 25,000 shares of Broadcom stock in a transaction that occurred on Friday, July 10th. The stock was sold at an average price of $401.33, for a total value of $10,033,250.00. Following the transaction, 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 legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Gayla Delly sold 1,890 shares of the company's stock in a transaction that occurred on Wednesday, July 8th. The shares were sold at an average price of $385.38, for a total value of $728,368.20. Following the completion of the sale, the director owned 31,326 shares in the company, valued at $12,072,413.88. The trade was a 5.69% 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 valued at $24,016,214 over the last three months. 1.90% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on AVGO shares. Erste Group Bank restated a "hold" rating on shares of Broadcom in a research report on Tuesday, July 7th. Lake Street Capital upgraded shares of Broadcom to a "buy" rating in a report on Thursday. Wall Street Zen downgraded Broadcom from a "strong-buy" rating to a "buy" rating in a report on Saturday, July 18th. Truist Financial reduced their price objective on Broadcom from $550.00 to $520.00 and set a "buy" rating on the stock in a research report on Thursday. Finally, Morgan Stanley reaffirmed an "overweight" rating and issued a $505.00 target price (up from $502.00) on shares of Broadcom in a report on Thursday. Thirty-one equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, Broadcom presently has an average rating of "Moderate Buy" and an average target price of $500.60.

Broadcom Company 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.

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.