Rakuten Securities Inc. Invests $4.89 Million in Broadcom Inc. $AVGO

Key Points

• Rakuten Securities bought 12,935 Broadcom shares worth approximately $4.89 million in the second quarter, making AVGO its 15th-largest holding at 1.1% of the portfolio. Institutional investors and hedge funds collectively own 76.43% of Broadcom.
• Broadcom is expanding its enterprise AI and infrastructure software offerings through VMware Private AI Cloud, agentic-AI security tools and the TrueSource open-source software portfolio.
• Analysts maintain a generally bullish outlook, with a “Moderate Buy” consensus and $491.97 average price target, but the stock’s roughly 62 P/E valuation, elevated expectations and recent insider selling add risk ahead of earnings.

Rakuten Securities Inc. purchased a new position in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) during the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund purchased 12,935 shares of the semiconductor manufacturer's stock, valued at approximately $4,886,000. Broadcom comprises 1.1% of Rakuten Securities Inc.'s portfolio, making the stock its 15th biggest position.

Other hedge funds also recently bought and sold shares of the company. Ieq Capital LLC purchased a new position in Broadcom in the 2nd quarter worth approximately $288,977,000. Robinhood Asset Management LLC acquired a new stake in shares of Broadcom in the second quarter valued at approximately $21,501,000. Heron Bay Capital Management purchased a new position in Broadcom during the second quarter worth approximately $261,000. Callan Family Office LLC acquired a new position in Broadcom during the second quarter worth $80,398,000. Finally, Expressive Wealth LLC purchased a new stake in Broadcom in the 2nd quarter valued at $2,010,000. Institutional investors and hedge funds own 76.43% of the company's stock.

Insider Transactions at Broadcom

In other Broadcom news, insider Mark David Brazeal sold 25,000 shares of Broadcom stock in a transaction dated 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 completion of 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 position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Justine Page sold 1,602 shares of the business's stock in a transaction dated Monday, June 29th. The stock was 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 in the company, valued at $6,514,884.36. This trade represents a 8.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 61,644 shares of company stock worth $24,016,214 in the last 90 days. Insiders own 1.90% of the company's stock.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom unveiled VMware Private AI Cloud, including VMware AI Factory, AI-ready data foundations and support for more than 150 commercial and open-source models. The platform is designed to reduce AI infrastructure deployment from weeks to hours, improve GPU utilization and give enterprises greater control over AI costs. Broadcom launches private AI cloud tools
• Positive Sentiment: New VMware capabilities—AgentMinder, vDefend and Avi Load Balancer—target security, identity, governance and observability for autonomous AI agents. The launches could strengthen Broadcom’s position in enterprise hybrid-cloud and private-AI deployments while creating additional infrastructure-software opportunities. Broadcom agentic AI security announcement
• Positive Sentiment: Broadcom also launched TrueSource, a commercially supported portfolio of verified open-source software covering Spring, Java, Python, Node.js, PostgreSQL, MySQL and other data engines. The offering may expand recurring software revenue and address growing enterprise demand for secure software supply chains. Broadcom TrueSource announcement
• Neutral Sentiment: Analysts expect another sharp increase in quarterly results, with consensus estimates cited near $29.4 billion in revenue and $3.24 in EPS. Investors will focus on AI-chip demand, hyperscaler custom-ASIC growth, VMware execution, margins and forward guidance when AVGO reports after the market closes on September 2. Broadcom Q3 earnings preview
• Neutral Sentiment: Optimistic coverage points to a median analyst price target of $525 and potential upside from backlog strength, while technical commentary identifies the current area as important support. However, the stock’s reaction may depend more on results and guidance than on existing bullish targets. Broadcom Wall Street outlook
• Negative Sentiment: Semiconductor shares broadly weakened as a global bond selloff pushed long-term yields higher, pressuring high-multiple technology stocks. Broadcom also faces elevated expectations, a valuation near 62 times earnings, margin concerns and competitive pressure from Nvidia, Nutanix and Microsoft. Reported insider activity is heavily weighted toward sales, adding another cautionary signal. Semiconductor stocks and rising yields

Analyst Ratings Changes

Several research analysts have recently commented on the company. Truist Financial lifted their price target on Broadcom from $545.00 to $550.00 and gave the stock a "buy" rating in a report on Thursday, June 4th. DA Davidson raised their price objective on shares of Broadcom from $375.00 to $400.00 and gave the stock a "neutral" rating in a research report on Thursday, June 4th. Oppenheimer reaffirmed an "outperform" rating and set a $535.00 target price (up from $450.00) on shares of Broadcom in a research note on Thursday, June 4th. JPMorgan Chase & Co. boosted their target price on shares of Broadcom from $500.00 to $580.00 and gave the company an "overweight" rating in a report on Thursday, June 4th. Finally, Wall Street Zen cut shares of Broadcom from a "strong-buy" rating to a "buy" rating in a research note on Saturday, July 18th. Twenty-nine research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $491.97.

Broadcom Stock Down 0.2%

NASDAQ:AVGO opened at $369.68 on Wednesday. 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's fifty day moving average is $384.43 and its two-hundred day moving average is $376.88. Broadcom Inc. has a 52 week low of $287.17 and a 52 week high of $495.00. The stock has a market capitalization of $1.76 trillion, a price-to-earnings ratio of 61.61, a price-to-earnings-growth ratio of 0.71 and a beta of 1.44.

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

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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