Randolph Co Inc Reduces Stock Holdings in Broadcom Inc. $AVGO

Key Points

• Randolph Co. cut its Broadcom stake by 23.3% in the second quarter, selling 69,191 shares and retaining 227,701 shares worth approximately $86 million. Broadcom remains the fund’s second-largest holding, representing 7.2% of its portfolio.
• Broadcom reported quarterly revenue of $22.19 billion, up 47.9% year over year, and EPS of $2.44, exceeding analyst expectations. The company also paid a quarterly dividend of $0.65 per share, equating to a 0.7% annualized yield.
• Despite strong AI-driven growth and a consensus “Moderate Buy” rating, investors face risks from Broadcom’s premium valuation, potential financing needs, and Marvell’s Google custom-chip agreement, which could increase competition for AI-chip business.

Randolph Co Inc lessened its stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 23.3% in the second quarter, according to its most recent filing with the SEC. The fund owned 227,701 shares of the semiconductor manufacturer's stock after selling 69,191 shares during the period. Broadcom comprises about 7.2% of Randolph Co Inc's portfolio, making the stock its 2nd largest holding. Randolph Co Inc's holdings in Broadcom were worth $86,014,000 as of its most recent filing with the SEC.

A number of other hedge funds have also modified their holdings of AVGO. Bank of America Corp DE increased its stake in Broadcom by 1.5% in the 1st quarter. Bank of America Corp DE now owns 58,737,097 shares of the semiconductor manufacturer's stock valued at $18,179,719,000 after buying an additional 894,564 shares during the period. Bartlett & CO. Wealth Management LLC boosted its stake in shares of Broadcom by 129.3% during the 1st quarter. Bartlett & CO. Wealth Management LLC now owns 110,048 shares of the semiconductor manufacturer's stock valued at $34,061,000 after buying an additional 62,050 shares during the period. First Bank & Trust boosted its stake in shares of Broadcom by 17.2% during the 2nd quarter. First Bank & Trust now owns 10,503 shares of the semiconductor manufacturer's stock valued at $3,968,000 after buying an additional 1,545 shares during the period. Fifth Lane Capital LP grew its holdings in shares of Broadcom by 77.8% during the 4th quarter. Fifth Lane Capital LP now owns 4,000 shares of the semiconductor manufacturer's stock valued at $1,384,000 after acquiring an additional 1,750 shares in the last quarter. Finally, Wealthcare Capital Partners LLC grew its holdings in shares of Broadcom by 36.4% during the 2nd quarter. Wealthcare Capital Partners LLC now owns 4,407 shares of the semiconductor manufacturer's stock valued at $1,665,000 after acquiring an additional 1,176 shares in the last quarter. 76.43% of the stock is currently owned by institutional investors and hedge funds.

Broadcom Stock Performance

AVGO opened at $364.03 on Friday. The company has a debt-to-equity ratio of 0.71, a quick ratio of 2.01 and a current ratio of 2.24. The company has a market cap of $1.73 trillion, a PE ratio of 60.67, a price-to-earnings-growth ratio of 0.69 and a beta of 1.45. The stock has a 50-day moving average of $388.84 and a 200-day moving average of $374.84. Broadcom Inc. has a 52-week low of $286.17 and a 52-week high of $495.00.

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

Broadcom Announces Dividend

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

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom is reportedly engaging lenders to secure up to $60 billion in financing for AI-chip projects. The funding could support large-scale production and expansion, although it may also increase leverage and financing risk. Broadcom engages with lenders to secure $60B for AI chip financing
• Positive Sentiment: ARK Invest reportedly purchased approximately $20 million of Broadcom shares during the weakness, providing a vote of confidence in the long-term AI infrastructure opportunity. AVGO Stock Recovers Premarket After Marvell-Linked Selloff
• Positive Sentiment: TD Cowen reiterated a Buy rating and a $500 price target. Broadcom’s latest results also showed strong underlying momentum, including nearly 48% year-over-year revenue growth and quarterly revenue slightly above consensus. Wall Street analyst updates Broadcom stock price target
• Neutral Sentiment: Broadcom still has a Google TPU and networking agreement extending through 2031. However, the company’s upcoming guidance—especially for fiscal 2027 AI semiconductor revenue—will be important in determining whether it can offset competitive concerns. Marvell Takes a Shot at Broadcom's Throne With Google Deal
• Negative Sentiment: Marvell Technology’s agreement to develop custom silicon connected to Google’s TPU ecosystem is the main pressure on AVGO. The deal covers inference accelerators and networking-related components, raising fears that Google could diversify away from Broadcom. Google also received warrants worth roughly $12.2 billion, potentially tied to as much as $120 billion of Marvell product purchases through 2033. Marvell Just Took Custom AI Chip Work at Google
• Negative Sentiment: Analyst commentary has highlighted Broadcom’s premium valuation, financing needs, and the reported second-quarter exit by Stanley Druckenmiller’s Duquesne Family Office. These factors reinforce concerns that strong AI growth may already be heavily reflected in the stock. Druckenmiller Sold Broadcom

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on AVGO. Zacks Research lowered Broadcom from a "strong-buy" rating to a "hold" rating in a report on Thursday, May 21st. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and issued a $515.00 target price (up from $430.00) on shares of Broadcom in a research report on Thursday, June 4th. JPMorgan Chase & Co. raised their price target on Broadcom from $500.00 to $580.00 and gave the stock an "overweight" rating in a research note on Thursday, June 4th. Wall Street Zen cut Broadcom from a "strong-buy" rating to a "buy" rating in a research note on Saturday, July 18th. Finally, Bank of America increased their price objective on Broadcom from $450.00 to $530.00 and gave the stock a "buy" rating in a report on Thursday, June 4th. Twenty-nine analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat.com, Broadcom currently has a consensus rating of "Moderate Buy" and a consensus price target of $491.97.

Insider Activity

In other Broadcom news, insider Mark David Brazeal sold 25,000 shares of the business's stock in a transaction 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 transaction, the insider 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 Securities & Exchange Commission, which is available at the SEC website. Also, Director Gayla J. Delly sold 1,890 shares of the company's stock in a transaction dated Wednesday, July 8th. The shares were sold at an average price of $385.38, for a total transaction of $728,368.20. Following the sale, the director owned 31,326 shares of the company's stock, valued at $12,072,413.88. This trade represents a 5.69% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 61,644 shares of company stock worth $24,016,214. Insiders own 1.90% of the company's stock.

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.

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