Reynders McVeigh Capital Management LLC Boosts Stock Position in Broadcom Inc. $AVGO

Key Points

• Reynders McVeigh Capital Management increased its Broadcom position by 348.4% in the second quarter, reaching 454,086 shares worth approximately $171.5 million. Institutional investors and hedge funds collectively own 76.43% of AVGO.
• Broadcom reported quarterly revenue of $29.59 billion and EPS of $3.32, exceeding analyst estimates, while revenue rose 85.5% year over year. Its AI custom-chip business remains a major growth catalyst, though hyperscalers developing their own accelerators pose a risk.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $509.04, compared with a recent share price of $357.67. Broadcom also declared a quarterly dividend of $0.65 per share, yielding approximately 0.7%.

Reynders McVeigh Capital Management LLC increased its holdings in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 348.4% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 454,086 shares of the semiconductor manufacturer's stock after purchasing an additional 352,815 shares during the period. Broadcom makes up 7.0% of Reynders McVeigh Capital Management LLC's portfolio, making the stock its 3rd biggest position. Reynders McVeigh Capital Management LLC's holdings in Broadcom were worth $171,531,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also modified their holdings of AVGO. Bullseye Investment Management LLC acquired a new position in Broadcom during the second quarter worth $3,184,000. Talon Private Wealth LLC raised its position in Broadcom by 11.7% during the second quarter. Talon Private Wealth LLC now owns 16,020 shares of the semiconductor manufacturer's stock worth $6,051,000 after acquiring an additional 1,679 shares in the last quarter. ABS Direct Equity Fund LLC lifted its stake in Broadcom by 170.0% in the second quarter. ABS Direct Equity Fund LLC now owns 756 shares of the semiconductor manufacturer's stock valued at $286,000 after acquiring an additional 476 shares during the last quarter. Bouchey Financial Group Ltd. lifted its stake in Broadcom by 15.8% in the second quarter. Bouchey Financial Group Ltd. now owns 7,216 shares of the semiconductor manufacturer's stock valued at $2,726,000 after acquiring an additional 985 shares during the last quarter. Finally, Miramontes Capital LLC grew its position in shares of Broadcom by 2.5% in the 2nd quarter. Miramontes Capital LLC now owns 14,231 shares of the semiconductor manufacturer's stock valued at $5,376,000 after acquiring an additional 351 shares during the period. 76.43% of the stock is currently owned by institutional investors and hedge funds.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s custom-chip business is the central bullish catalyst. Management projects AI semiconductor revenue of approximately $115 billion in fiscal 2027 and $230 billion in fiscal 2028, as hyperscalers seek alternatives to standard GPUs to improve computing costs and efficiency. The AI Boom Isn’t Over: 3 Stocks You Need to Watch
• Positive Sentiment: Commentators including Jim Cramer view AVGO as potentially “too cheap to ignore” following a decline of roughly 30% from its yearly peak. The argument is that strong AI growth, repeated earnings beats, and a lower share price create an attractive risk-reward setup for long-term investors. Jim Cramer on Broadcom
• Positive Sentiment: Broadcom’s CEO Hock Tan reportedly expressed strong confidence despite recent AI-related market fears. The company also benefits from continued semiconductor-sector strength and expectations that AI infrastructure investment will remain elevated. Broadcom CEO Hock Tan says he isn’t worried
• Neutral Sentiment: Investor attention is unusually high, with multiple reports highlighting AVGO as one of the most-watched stocks. These articles largely recap existing earnings and valuation themes rather than announce a new company-specific development. Broadcom is Attracting Investor Attention
• Negative Sentiment: Risks include hyperscalers developing their own AI accelerators, which could reduce reliance on outside suppliers. Meta, for example, could save billions by using internally designed chips. Broadcom’s VMware and enterprise-software growth story also has mixed industry evidence, making the AI forecast the more important driver for the stock. Meta Can Save $8.5 Billion by Using Its Own Chips

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on AVGO. Royal Bank Of Canada began coverage on shares of Broadcom in a research note on Thursday, September 3rd. They set an "outperform" rating on the stock. Wall Street Zen cut Broadcom from a "strong-buy" rating to a "buy" rating in a report on Saturday, July 18th. Benchmark boosted their price target on Broadcom from $485.00 to $545.00 and gave the stock a "buy" rating in a research report on Thursday, June 4th. Evercore set a $578.00 price objective on Broadcom in a research note on Thursday, September 3rd. Finally, Erste Group Bank reaffirmed a "hold" rating on shares of Broadcom in a research report on Tuesday, July 7th. One analyst has rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating and four have given a Hold rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $509.04.

Insider Buying and Selling

In related news, 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 value of $598,923.72. Following the completion of the transaction, the director owned 17,426 shares of the company's stock, valued at $6,514,884.36. This represents a 8.42% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Mark Brazeal sold 25,000 shares of the business's stock in a transaction on Friday, July 10th. The stock was sold at an average price of $401.33, for a total transaction of $10,033,250.00. Following the sale, the insider directly owned 194,989 shares in the company, valued at approximately $78,254,935.37. The trade was a 11.36% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 53,492 shares of company stock worth $20,840,292 in the last three months. 1.90% of the stock is owned by corporate insiders.

Broadcom Stock Performance

Shares of Broadcom stock opened at $357.67 on Friday. The company has a 50 day moving average of $378.91 and a 200-day moving average of $379.01. Broadcom Inc. has a 1-year low of $289.96 and a 1-year high of $495.00. The company has a current ratio of 2.50, a quick ratio of 2.29 and a debt-to-equity ratio of 0.57. The company has a market cap of $1.71 trillion, a PE ratio of 45.68 and a beta of 1.44.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced 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. Broadcom had a return on equity of 48.33% and a net margin of 42.94%.The business had revenue of $29.59 billion during the quarter, compared to the consensus estimate of $29.24 billion. During the same period in the prior year, the company earned $1.69 EPS. Broadcom's revenue for the quarter was up 85.5% on a year-over-year basis. As a group, equities research analysts forecast that Broadcom Inc. will post 10.36 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Investors 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 yield of 0.7%. The ex-dividend date is Monday, September 21st. Broadcom's dividend payout ratio is currently 33.21%.

About Broadcom

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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