Monetta Financial Services Inc. Lowers Stock Holdings in Broadcom Inc. $AVGO

Key Points

• Monetta Financial Services cut its Broadcom stake by 32.4% in the second quarter, selling 2,400 shares and retaining 5,000 shares valued at approximately $1.89 million. Institutional investors collectively own 76.43% of AVGO.
• Broadcom reported quarterly EPS of $3.32 and revenue of $29.59 billion, exceeding analyst expectations, while revenue surged 85.5% year over year. The company also declared a quarterly dividend of $0.65 per share, representing a 0.7% yield.
• Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and an average price target of $504.93, although concerns include the stock’s premium valuation, customer concentration, margin pressure and supply constraints.

Monetta Financial Services Inc. reduced its stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 32.4% during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 5,000 shares of the semiconductor manufacturer's stock after selling 2,400 shares during the period. Broadcom accounts for 1.3% of Monetta Financial Services Inc.'s holdings, making the stock its 21st biggest holding. Monetta Financial Services Inc.'s holdings in Broadcom were worth $1,889,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors have also modified their holdings of the stock. ROSS JOHNSON & Associates LLC lifted its holdings in shares of Broadcom by 1,320.0% in the 4th quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer's stock worth $25,000 after buying an additional 66 shares during the period. Networth Advisors LLC grew its position in shares of Broadcom by 546.2% during the 1st quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer's stock worth $26,000 after buying an additional 71 shares in the last quarter. SWAN Capital LLC increased its stake in shares of Broadcom by 261.9% during the fourth quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer's stock valued at $26,000 after buying an additional 55 shares during the period. Harborfront Financial Group LLC bought a new stake in shares of Broadcom in the second quarter valued at about $38,000. Finally, Cherry Tree Wealth Management LLC raised its holdings in shares of Broadcom by 44.9% in the fourth quarter. Cherry Tree Wealth Management LLC now owns 129 shares of the semiconductor manufacturer's stock valued at $45,000 after acquiring an additional 40 shares in the last quarter. 76.43% of the stock is owned by hedge funds and other institutional investors.

Broadcom Price Performance

Shares of AVGO stock opened at $368.56 on Wednesday. The stock's 50-day moving average is $383.09 and its 200 day moving average is $378.02. Broadcom Inc. has a 1-year low of $289.96 and a 1-year high of $495.00. The company has a debt-to-equity ratio of 0.57, a current ratio of 2.50 and a quick ratio of 2.29. The company has a market cap of $1.75 trillion, a P/E ratio of 47.07 and a beta of 1.44.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 EPS for the quarter, topping analysts' consensus estimates of $3.22 by $0.10. The business had revenue of $29.59 billion during the quarter, compared to the consensus estimate of $29.24 billion. Broadcom had a net margin of 42.94% and a return on equity of 48.33%. The firm's revenue was up 85.5% on a year-over-year basis. During the same period in the previous year, the company posted $1.69 earnings per share. Research analysts predict that Broadcom Inc. will post 10.25 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The company 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 $0.65 dividend. The ex-dividend date of this dividend is Monday, September 21st. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.7%. Broadcom's payout ratio is presently 33.21%.

Analysts Set New Price Targets

AVGO has been the subject of a number of research reports. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and issued a $515.00 price objective (up from $430.00) on shares of Broadcom in a research note on Thursday, June 4th. DA Davidson set a $350.00 price target on shares of Broadcom and gave the company a "neutral" rating in a report on Friday. Susquehanna reaffirmed a "positive" rating and issued a $490.00 price target (up from $450.00) on shares of Broadcom in a research report on Thursday, May 28th. Wells Fargo & Company reaffirmed an "overweight" rating and issued a $545.00 price target (up from $430.00) on shares of Broadcom in a research report on Thursday, May 14th. Finally, UBS Group downgraded shares of Broadcom from a "buy" rating to a "hold" rating in a research note on Thursday, September 3rd. Thirty equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $504.93.

Insider Activity

In other news, Director Harry You bought 1,000 shares of the stock in a transaction on Thursday, June 11th. The stock was bought at an average cost of $373.57 per share, for a total transaction of $373,570.00. Following the completion of the purchase, the director directly owned 38,466 shares in the company, valued at approximately $14,369,743.62. The trade was a 2.67% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Gayla J. Delly sold 1,890 shares of Broadcom stock in a transaction on 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 transaction, the director directly owned 31,326 shares in the company, valued at $12,072,413.88. This represents a 5.69% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 61,644 shares of company stock worth $24,016,214. Insiders own 1.90% of the company's stock.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s latest results showed powerful AI momentum: AI semiconductor revenue increased 221% to $16.7 billion, while management raised its fiscal 2027 AI revenue outlook to approximately $115 billion, up from more than $100 billion previously. Some projections cited in the coverage point to $230 billion in AI revenue by fiscal 2028. Broadcom’s AI Forecast Suggests Hyperscalers Want More Than Nvidia GPUs
• Positive Sentiment: Analysts continue to raise their expectations, with Cantor reportedly assigning a $600 price target. Bullish analysts argue that hyperscalers increasingly want custom accelerators, AI networking and complete data-center architectures—not only Nvidia GPUs—giving Broadcom a larger role in inference and other workloads. Top Analyst Sets $600 Broadcom Stock Target
• Positive Sentiment: A multi-generation Amazon AI-silicon agreement with Qualcomm also highlights the growing data-center market for custom chips. Although Qualcomm is the direct beneficiary, the deal reinforces the strategic importance of custom silicon and supports the broader investment case for Broadcom’s design and networking business. Qualcomm Amazon AI Silicon Deal
• Neutral Sentiment: The post-earnings reaction has been mixed because investors are scrutinizing near-term guidance, Broadcom’s share of customers’ tensor processing unit programs, and whether constrained chip supply can keep pace with demand. Wall Street remains broadly optimistic, but expectations are exceptionally high. Despite Post-Earnings Drop, Wall Street Analysts Eye New Highs for Broadcom Stock
• Negative Sentiment: Bearish coverage points to margin pressure, customer concentration, supply constraints and a premium valuation—Broadcom trades at roughly 47 times earnings—leaving limited room for execution mistakes. These concerns help explain why strong earnings did not produce a uniformly positive market response. Broadcom Buy, Sell or Hold Analysis

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.

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