Royal Fund Management LLC Has $12.47 Million Stake in Broadcom Inc. $AVGO

Key Points

• Royal Fund Management reduced its Broadcom stake by 5% in the second quarter, selling 1,722 shares and retaining 33,018 shares valued at approximately $12.47 million. Broadcom represents about 1% of the firm’s portfolio.
• Broadcom reported quarterly revenue of $22.19 billion, up 47.9% year over year, and earnings of $2.44 per share, exceeding analyst estimates. Analysts maintain a “Moderate Buy” consensus with an average price target of $493.24, supported by strong AI-related networking and custom-chip demand.
• Valuation and competition remain risks: the stock trades at a high price-to-earnings ratio of roughly 69.6, while analysts caution about intensifying competition in custom AI silicon and the possibility of a semiconductor-cycle peak.

Royal Fund Management LLC lowered its holdings in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 5.0% in the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 33,018 shares of the semiconductor manufacturer's stock after selling 1,722 shares during the period. Broadcom makes up about 1.0% of Royal Fund Management LLC's portfolio, making the stock its 22nd largest holding. Royal Fund Management LLC's holdings in Broadcom were worth $12,473,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also recently made changes to their positions in the business. Venturi Wealth Management LLC increased its holdings in shares of Broadcom by 0.6% during the second quarter. Venturi Wealth Management LLC now owns 112,791 shares of the semiconductor manufacturer's stock worth $42,607,000 after purchasing an additional 661 shares during the period. Selective Wealth Management Inc. raised its position in shares of Broadcom by 33.3% in the second quarter. Selective Wealth Management Inc. now owns 2,394 shares of the semiconductor manufacturer's stock valued at $888,000 after buying an additional 598 shares in the last quarter. Aspiriant LLC boosted its stake in shares of Broadcom by 19.0% in the second quarter. Aspiriant LLC now owns 12,395 shares of the semiconductor manufacturer's stock valued at $4,682,000 after buying an additional 1,975 shares during the period. Shakespeare Wealth Management LLC boosted its stake in shares of Broadcom by 4.7% in the second quarter. Shakespeare Wealth Management LLC now owns 737 shares of the semiconductor manufacturer's stock valued at $278,000 after buying an additional 33 shares during the period. Finally, Brown Wealth Management LLC grew its position in Broadcom by 9.3% during the second quarter. Brown Wealth Management LLC now owns 2,993 shares of the semiconductor manufacturer's stock worth $1,131,000 after buying an additional 255 shares in the last quarter. Institutional investors and hedge funds own 76.43% of the company's stock.

Broadcom News Summary

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom and NVIDIA’s efforts to raise debt and private capital to fund AI infrastructure underscore the scale of expected demand for computing capacity, potentially supporting Broadcom’s custom-chip and networking businesses. Nvidia and Broadcom Deepen AI Financing Push — But Wolfe Sees Long-Term Risks
• Positive Sentiment: Recent earnings commentary highlights optics and high-speed networking as increasingly important parts of the AI buildout, areas where Broadcom is positioned to benefit from hyperscale customer spending. Lumentum and Broadcom: Both Have Seen the Light in AI But How Should Investors Play Them?
• Positive Sentiment: Analysts and investors continue to focus on surging AI-networking demand, Broadcom’s accelerator programs and its ability to benefit regardless of which AI chip architecture ultimately becomes dominant. Is Broadcom in Focus as AI Networking Demand Surges?
• Positive Sentiment: Institutional buying provided an additional confidence signal: GAMCO Investors added 6,223 shares, while Bowie Capital previously increased its position by 112,599 shares. Cathie Wood also reportedly purchased approximately $16.2 million of AVGO. GAMCO Investors Boosts Broadcom Stake
• Neutral Sentiment: Broadcom remains a major beneficiary of the broader AI investment theme, with investors increasingly seeking exposure to the ecosystem and supply chain rather than concentrating only in individual chip stocks. The Future of AI Investing: Harbor Debuts 5 New Ecosystem ETFs
• Negative Sentiment: Valuation remains a key concern. Broadcom has delivered roughly an 8.7-fold five-year return, while current earnings multiples are viewed as expensive and a discounted-cash-flow estimate is near the market value, leaving less room for execution disappointments. Broadcom Stock Trades Near Fair Value but at a Premium on Earnings
• Negative Sentiment: Wolfe Research sees longer-term risks from intensifying competition in custom AI silicon, while other market observers warn that semiconductor flows and enthusiasm could be approaching a cyclical peak. Semiconductor Flows Stay Sticky Despite Cycle-Peak Warning

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on AVGO shares. Dbs Bank upgraded Broadcom to a "moderate buy" rating in a research note on Thursday, June 18th. Royal Bank Of Canada increased their target price on Broadcom from $360.00 to $400.00 and gave the stock a "sector perform" rating in a report on Thursday, June 4th. Jefferies Financial Group set a $550.00 price target on Broadcom and gave the stock a "buy" rating in a research report on Thursday, June 4th. UBS Group set a $485.00 price target on Broadcom and gave the company a "buy" rating in a research note on Thursday, June 4th. Finally, Truist Financial upped their price objective on shares of Broadcom from $545.00 to $550.00 and gave the stock a "buy" rating in a research report on Thursday, June 4th. Twenty-eight analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $493.24.

Broadcom Stock Up 0.4%

NASDAQ AVGO opened at $417.82 on Friday. The business has a fifty day moving average price of $389.65 and a two-hundred day moving average price of $373.16. The stock has a market capitalization of $1.99 trillion, a PE ratio of 69.64, a PEG ratio of 0.79 and a beta of 1.45. Broadcom Inc. has a fifty-two week low of $281.87 and a fifty-two week high of $495.00. The company has a debt-to-equity ratio of 0.71, a current ratio of 2.24 and a quick ratio of 2.01.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its quarterly earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share (EPS) for the quarter, beating 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 company had revenue of $22.19 billion for the quarter, compared to analyst estimates of $22.13 billion. During the same quarter last year, the company posted $1.58 EPS. The company's revenue for the quarter was up 47.9% compared to the same quarter last year. Equities analysts expect that Broadcom Inc. will post 10.24 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Monday, June 22nd were given a $0.65 dividend. This represents a $2.60 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date was Monday, June 22nd. Broadcom's payout ratio is currently 43.33%.

Insiders Place Their Bets

In related news, Director Harry L. You purchased 1,000 shares of the firm's stock in a transaction that occurred on Thursday, June 11th. The shares were bought at an average cost of $373.57 per share, with a total value of $373,570.00. Following the acquisition, the director owned 38,466 shares of the company's stock, valued at $14,369,743.62. This trade represents a 2.67% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, insider Mark David Brazeal sold 25,000 shares of Broadcom stock in a transaction that occurred 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 sale, the insider directly owned 194,989 shares in the company, valued at $78,254,935.37. This trade represents a 11.36% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 61,644 shares of company stock worth $24,016,214. Insiders own 1.90% of the company's stock.

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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