SCS Capital Management LLC Acquires Shares of 92,616 Broadcom Inc. $AVGO

Key Points

• SCS Capital Management acquired 92,616 Broadcom shares worth approximately $35 million in the second quarter, making AVGO its 23rd-largest holding. Institutional investors collectively own 76.43% of Broadcom.
• Broadcom reported quarterly revenue of $22.19 billion and EPS of $2.44, exceeding analyst expectations, while revenue rose 47.9% year over year. The company also declared a quarterly dividend of $0.65 per share.
• Analyst sentiment remains favorable, with 29 Buy ratings and four Holds and an average price target of $491.97, but investors face concerns about potential margin contraction, AI-related financing and competitive pressure in custom chips.

SCS Capital Management LLC acquired a new stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor acquired 92,616 shares of the semiconductor manufacturer's stock, valued at approximately $34,986,000. Broadcom accounts for approximately 0.3% of SCS Capital Management LLC's portfolio, making the stock its 23rd biggest holding.

A number of other institutional investors have also modified their holdings of AVGO. Vanguard Group Inc. increased its stake in Broadcom by 0.8% in the fourth quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer's stock valued at $167,064,997,000 after purchasing an additional 3,919,715 shares during the period. State Street Corp increased its position in Broadcom by 2.7% in the 4th quarter. State Street Corp now owns 190,084,351 shares of the semiconductor manufacturer's stock valued at $65,788,194,000 after acquiring an additional 5,040,801 shares during the period. Geode Capital Management LLC increased its position in Broadcom by 1.4% in the 4th quarter. Geode Capital Management LLC now owns 111,277,280 shares of the semiconductor manufacturer's stock valued at $38,396,634,000 after acquiring an additional 1,548,699 shares during the period. Price T Rowe Associates Inc. MD raised its stake in Broadcom by 3.0% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 85,546,083 shares of the semiconductor manufacturer's stock valued at $29,607,500,000 after acquiring an additional 2,491,644 shares during the last quarter. Finally, Norges Bank acquired a new stake in Broadcom during the 4th quarter worth approximately $24,252,196,000. 76.43% of the stock is owned by institutional investors and hedge funds.

Insider Activity at Broadcom

In related news, Director Justine Page sold 1,602 shares of the firm's stock in a transaction that occurred on Monday, June 29th. The stock was sold at an average price of $373.86, for a total value of $598,923.72. Following the completion of the transaction, the director directly owned 17,426 shares of the company's stock, valued at $6,514,884.36. This trade represents a 8.42% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Harry L. You acquired 1,000 shares of Broadcom stock in a transaction that occurred on Thursday, June 11th. The shares were purchased at an average cost of $373.57 per share, with a total value of $373,570.00. Following the completion of the acquisition, the director owned 38,466 shares of the company's stock, valued at $14,369,743.62. The trade was a 2.67% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have sold a total of 61,644 shares of company stock valued at $24,016,214 in the last 90 days. Insiders own 1.90% of the company's stock.

Broadcom Price Performance

Broadcom stock opened at $356.74 on Wednesday. The company has a market cap of $1.70 trillion, a P/E ratio of 59.46, a price-to-earnings-growth ratio of 0.68 and a beta of 1.45. Broadcom Inc. has a one year low of $287.17 and a one year high of $495.00. The business has a fifty day moving average of $387.47 and a two-hundred day moving average of $375.72. The company has a debt-to-equity ratio of 0.71, a quick ratio of 2.01 and a current ratio of 2.24.

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

Broadcom Dividend Announcement

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

Broadcom News Summary

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Rackspace Technology launched a fully managed multitenant cloud platform based on Broadcom’s VMware Cloud Foundation 9.1. The deployment provides early commercial validation for Broadcom’s VMware strategy and targets regulated customers running Kubernetes and AI workloads. Broadcom (AVGO) Debuts VMware Cloud Foundation 9.1 In Managed Multitenant Cloud
• Positive Sentiment: Analysts continue to view Broadcom as a major beneficiary of the shift from AI training toward inference and agentic workloads, supporting the long-term outlook for its custom silicon and networking businesses. Broadcom Vs. Micron: Why They're So Strong as Capital Shifts to Inference and Agentic AI
• Positive Sentiment: Historical analysis argues that the loss or reduction of a major customer’s chip program does not necessarily imply sustained weakness; Broadcom’s revenue grew substantially after a comparable Apple-related concern in 2023. Broadcom Has Seen Its Biggest Customer Drop a Key Chip Before
• Neutral Sentiment: Upcoming NVIDIA earnings and guidance could move Broadcom and other AI stocks, making NVIDIA’s results an important read-through for AI infrastructure demand. NVIDIA Earnings Could Move These 3 AI Stocks
• Neutral Sentiment: Reported short-interest data showed no measurable short position, but the figures appear incomplete or erroneous, limiting their usefulness as a trading signal.
• Negative Sentiment: Analysts expect continued gross-margin contraction in the upcoming third-quarter report, raising concerns that Broadcom’s rapid AI expansion could pressure profitability. Broadcom Q3 Earnings Preview
• Negative Sentiment: Reports that Broadcom is arranging roughly $60 billion of AI-related financing, potentially through structures that keep debt off its balance sheet, have increased investor concerns about leverage, credit-default-swap risk and the ultimate scale of AI deployment obligations. Broadcom’s $60 Billion AI Debt Deal
• Negative Sentiment: Broadcom is also facing broader semiconductor-sector selling ahead of NVIDIA’s report, while Marvell’s expanded custom-chip agreement with Google has intensified worries about customer concentration and competitive pressure. Broadcom Stock Drops Amid Rising Credit Default Swap Concerns

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on AVGO. Oppenheimer reissued an "outperform" rating and issued a $535.00 target price (up from $450.00) on shares of Broadcom in a report on Thursday, June 4th. TD Cowen reissued a "buy" rating and issued a $500.00 price objective on shares of Broadcom in a research note on Thursday, June 4th. Jefferies Financial Group set a $550.00 price objective on shares of Broadcom and gave the stock a "buy" rating in a research report on Thursday, June 4th. Truist Financial lifted their target price on shares of Broadcom from $545.00 to $550.00 and gave the company a "buy" rating in a report on Thursday, June 4th. Finally, Evercore reissued an "outperform" rating and set a $582.00 price target on shares of Broadcom in a report on Tuesday, May 19th. Twenty-nine analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $491.97.

About Broadcom

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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