Shepherd Financial Partners LLC Makes New Investment in Broadcom Inc. $AVGO

Key Points

• Shepherd Financial Partners initiated a 31,261-share Broadcom position worth approximately $11.8 million, representing 1% of its portfolio and ranking as its 15th-largest holding.
• Institutional investors own 76.43% of Broadcom, while analysts maintain a consensus “Moderate Buy” rating with an average price target of $491.97.
• Broadcom reported quarterly revenue growth of 47.9% year over year and beat earnings estimates, but investors remain focused on competition from hyperscalers’ in-house chips, potential debt financing, and the stock’s elevated 61.47 P/E ratio.

Shepherd Financial Partners LLC bought a new stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) in the second quarter, according to its most recent filing with the Securities and Exchange Commission. The fund bought 31,261 shares of the semiconductor manufacturer's stock, valued at approximately $11,809,000. Broadcom comprises 1.0% of Shepherd Financial Partners LLC's holdings, making the stock its 15th largest holding.

A number of other institutional investors and hedge funds have also recently modified their holdings of the company. Vanguard Group Inc. increased its position in Broadcom by 0.8% during 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 acquiring an additional 3,919,715 shares during the last quarter. State Street Corp boosted its position in Broadcom by 2.7% in the fourth quarter. State Street Corp now owns 190,084,351 shares of the semiconductor manufacturer's stock worth $65,788,194,000 after purchasing an additional 5,040,801 shares during the last quarter. Geode Capital Management LLC grew its stake in shares of Broadcom by 1.4% during 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 purchasing an additional 1,548,699 shares during the period. Price T Rowe Associates Inc. MD grew its stake in shares of 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 purchasing an additional 2,491,644 shares during the period. Finally, Norges Bank purchased a new stake in shares of Broadcom during the 4th quarter valued at about $24,252,196,000. 76.43% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

AVGO has been the topic of several recent research reports. Erste Group Bank reiterated a "hold" rating on shares of Broadcom in a research note on Tuesday, July 7th. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and set a $515.00 target price (up from $430.00) on shares of Broadcom in a report on Thursday, June 4th. DA Davidson increased their price target 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. Weiss Ratings cut shares of Broadcom from a "buy (b)" rating to a "buy (b-)" rating in a research note on Thursday, July 30th. Finally, Susquehanna reissued a "positive" rating and set a $490.00 price objective (up from $450.00) on shares of Broadcom in a research report on Thursday, May 28th. Twenty-nine investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $491.97.

Trending Headlines about Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Mizuho remains bullish ahead of earnings, citing Broadcom’s nearly uninterrupted 30-quarter earnings track record, deeply negative investor sentiment, and the possibility that CEO Hock Tan will directly address concerns about custom ASIC competition and Google’s in-house chips. Mizuho is bullish on Broadcom ahead of Sept. 2 earnings
• Positive Sentiment: Broadcom’s partnership with OpenAI on the Jalapeño inference chip highlights demand for specialized AI infrastructure. OpenAI says the chip can deliver substantially better performance per watt than comparison systems, potentially supporting Broadcom’s custom-chip and networking growth. Why BNP thinks Jalapeño could benefit Broadcom stock
• Positive Sentiment: Analysts argue Broadcom offers a better AI risk-reward profile than AMD because of its broader exposure across custom accelerators, networking, and infrastructure software, along with a comparatively lower valuation. Broadcom vs. AMD: Which AI Chip Stock Has the Better Risk-Reward?
• Positive Sentiment: A new Kyndryl collaboration expands VMware Cloud Foundation’s reach among enterprise customers, reinforcing Broadcom’s private-cloud and software modernization strategy. Broadcom Kyndryl partnership
• Neutral Sentiment: Royal Bank of Canada reiterated its “Sector Perform” rating, suggesting balanced expectations rather than a strong near-term catalyst. Royal Bank of Canada reiterates Sector Perform
• Negative Sentiment: Broadcom is reportedly considering $70 billion to $80 billion of debt financing for an AI chip-related transaction involving companies including Anthropic. The potential borrowing could accelerate growth but raises leverage, execution, and repayment risks. Broadcom nears $70B debt financing deal
• Negative Sentiment: Investors remain concerned that Google’s and other hyperscalers’ internally designed chips could pressure Broadcom’s custom-silicon revenue. Competition from Marvell, NVIDIA, and AMD adds to the risk, while Broadcom’s elevated earnings multiple leaves less room for disappointment. Marvell and Google custom silicon deal

Insiders Place Their Bets

In other Broadcom news, Director Gayla J. Delly sold 1,890 shares of the company's stock in a transaction that occurred on Wednesday, July 8th. The stock was sold at an average price of $385.38, for a total value of $728,368.20. Following the completion of the transaction, the director directly owned 31,326 shares in the company, valued at $12,072,413.88. This represents a 5.69% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Harry L. You acquired 1,000 shares of the business's stock in a transaction 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 completion of the acquisition, the director owned 38,466 shares in the company, valued at approximately $14,369,743.62. This represents a 2.67% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last three months, insiders have sold 61,644 shares of company stock worth $24,016,214. Company insiders own 1.90% of the company's stock.

Broadcom Price Performance

AVGO opened at $368.79 on Monday. 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 Inc. has a fifty-two week low of $287.17 and a fifty-two week high of $495.00. The firm's fifty day moving average is $385.07 and its 200 day moving average is $376.48. The stock has a market cap of $1.75 trillion, a price-to-earnings ratio of 61.47, a price-to-earnings-growth ratio of 0.70 and a beta of 1.45.

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, topping analysts' consensus estimates of $2.40 by $0.04. The business had revenue of $22.19 billion during the quarter, compared to analyst estimates of $22.13 billion. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.Broadcom's revenue for the quarter was up 47.9% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.58 EPS. On average, sell-side analysts forecast 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. Investors of record on Monday, June 22nd were given a dividend of $0.65 per share. The ex-dividend date was Monday, June 22nd. This represents a $2.60 annualized dividend and a dividend yield of 0.7%. Broadcom's dividend payout ratio (DPR) is currently 43.33%.

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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