Tenet Wealth Partners LLC Makes New $1.09 Million Investment in Broadcom Inc. $AVGO

Key Points

• Tenet Wealth Partners initiated a $1.09 million position in Broadcom during the second quarter, purchasing 2,833 shares. Broadcom now represents approximately 0.8% of the firm’s portfolio, while institutional investors collectively own 76.43% of the stock.
• Broadcom reported quarterly earnings and revenue above analyst expectations, with revenue up 85.5% year over year. However, shares recently fell 4.8% amid concerns about valuation, customer concentration, execution and whether AI-related spending can sustain its current pace.
• Analysts remain broadly bullish, with 28 Buy ratings, one Strong Buy and four Hold ratings, producing a Moderate Buy consensus and an average price target of $509.04. The company also declared a quarterly dividend of $0.65 per share, equivalent to a 0.8% yield.

Tenet Wealth Partners LLC bought a new position in Broadcom Inc. (NASDAQ:AVGO - Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm bought 2,833 shares of the semiconductor manufacturer's stock, valued at approximately $1,086,000. Broadcom makes up about 0.8% of Tenet Wealth Partners LLC's portfolio, making the stock its 24th largest holding.

Other large investors have also made changes to their positions in the company. Networth Advisors LLC grew its position in Broadcom by 546.2% during the 1st quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer's stock worth $26,000 after purchasing an additional 71 shares in the last quarter. Harborfront Financial Group LLC acquired a new stake in shares of Broadcom in the second quarter worth $38,000. Cherry Tree Wealth Management LLC boosted its position in shares of Broadcom by 44.9% in the fourth quarter. Cherry Tree Wealth Management LLC now owns 129 shares of the semiconductor manufacturer's stock worth $45,000 after buying an additional 40 shares during the period. Godfrey Financial Associates Inc. purchased a new position in shares of Broadcom during the fourth quarter valued at $56,000. Finally, IMG Wealth Management Inc. purchased a new position in shares of Broadcom during the second quarter valued at $64,000. Institutional investors and hedge funds own 76.43% of the company's stock.

Broadcom News Roundup

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom remains a favored way to gain exposure to AI while receiving dividend income. Its custom AI-chip business is expected to continue expanding rapidly as hyperscalers and AI companies build additional computing capacity. 3 Stocks That Offer AI Exposure and Dividends
• Positive Sentiment: CEO Hock Tan reportedly said demand already exceeds Broadcom’s $115 billion AI forecast, with AI revenue projected to double in fiscal 2027 and again in 2028. Accelerating shipments of Ironwood chips to Anthropic could further strengthen Broadcom’s custom-hardware opportunity. Broadcom CEO Hock Tan Says Demand Already Exceeds Broadcom’s $115 Billion AI Forecast
• Positive Sentiment: Mizuho analyst Vijay Rakesh expects AVGO to rally toward a new all-time high over the next 12 months, supporting the longer-term bullish case despite recent weakness. Wall Street Sets Broadcom Stock Price for the Next 12 Months
• Neutral Sentiment: Analyst commentary remains divided: Broadcom is viewed as a major beneficiary of AI demand, but Vertiv is considered better positioned on valuation, earnings momentum and near-term upside. Vertiv vs. Broadcom: Which AI Infrastructure Stock Has More Upside?
• Negative Sentiment: Investors are questioning whether AI spending can maintain its current pace. Broadcom also faces concerns about elevated valuation, customer concentration, margins and execution, while reports cite a failure to meet Wall Street’s fiscal fourth-quarter revenue expectations. Marvell Falls as AI Pacing Debate Collides With Fed Week

Broadcom Trading Down 4.8%

NASDAQ:AVGO opened at $344.72 on Tuesday. The company has a market capitalization of $1.65 trillion, a P/E ratio of 44.03 and a beta of 1.44. The stock's 50 day moving average price is $382.45 and its 200 day moving average price is $378.79. The company has a debt-to-equity ratio of 0.57, a quick ratio of 2.29 and a current ratio of 2.50. Broadcom Inc. has a 52 week low of $289.96 and a 52 week high of $495.00.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.22 by $0.10. The firm had revenue of $29.59 billion during the quarter, compared to analysts' expectations of $29.24 billion. Broadcom had a net margin of 42.94% and a return on equity of 48.33%. The company's revenue was up 85.5% compared to the same quarter last year. During the same period in the previous year, the company earned $1.69 earnings per share. On average, research analysts forecast that Broadcom Inc. will post 10.36 EPS for the current fiscal year.

Broadcom Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Monday, September 21st will be paid a $0.65 dividend. This represents a $2.60 annualized dividend and a dividend yield of 0.8%. The ex-dividend date of this dividend is Monday, September 21st. Broadcom's payout ratio is presently 33.21%.

Insider Buying and Selling

In other Broadcom news, Director Justine Page sold 1,602 shares of the firm's stock in a transaction dated Monday, June 29th. The stock was sold at an average price of $373.86, for a total transaction of $598,923.72. Following the transaction, the director directly owned 17,426 shares in the company, valued at $6,514,884.36. This trade represents a 8.42% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Mark Brazeal sold 25,000 shares of the business's stock in a transaction dated Friday, July 10th. The stock was sold at an average price of $401.33, for a total value of $10,033,250.00. Following the completion of the sale, the insider directly owned 194,989 shares of the company's stock, valued at $78,254,935.37. This represents a 11.36% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 58,317 shares of company stock worth $22,745,733. Corporate insiders own 1.90% of the company's stock.

Analyst Ratings Changes

AVGO has been the subject of several research analyst reports. TD Cowen reissued a "buy" rating and issued a $475.00 price objective (down from $500.00) on shares of Broadcom in a research note on Thursday, September 3rd. DA Davidson set a $350.00 target price on Broadcom and gave the company a "neutral" rating in a research note on Friday, September 4th. Truist Financial dropped their target price on Broadcom from $550.00 to $520.00 and set a "buy" rating on the stock in a report on Thursday, September 3rd. BMO Capital Markets increased their price target on shares of Broadcom from $455.00 to $575.00 and gave the stock an "outperform" rating in a research report on Thursday, September 3rd. Finally, Cantor Fitzgerald increased their price target on shares of Broadcom from $525.00 to $600.00 and gave the stock an "overweight" rating in a research report on Thursday, September 3rd. One equities research analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $509.04.

Broadcom Company Profile

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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