Two Sigma Securities LLC Increases Stake in Broadcom Inc. $AVGO

Key Points

• Two Sigma Securities increased its Broadcom stake by 223.6% in the second quarter, owning 18,129 shares valued at approximately $6.85 million. Institutional investors collectively hold 76.43% of Broadcom’s outstanding stock.
• Broadcom exceeded quarterly expectations with earnings of $3.32 per share and revenue of $29.59 billion, up 85.5% year over year. The company also declared a quarterly dividend of $0.65 per share, representing a 0.7% yield.
• Analysts maintain a broadly positive outlook, with 30 Buy ratings and four Holds and a consensus price target of $505.97. However, shares were trading below their 50-day and 200-day moving averages, while recent insider sales and valuation concerns remain risks.

Two Sigma Securities LLC raised its position in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 223.6% in the 2nd quarter, according to its most recent filing with the SEC. The firm owned 18,129 shares of the semiconductor manufacturer's stock after acquiring an additional 12,526 shares during the period. Broadcom makes up 0.6% of Two Sigma Securities LLC's investment portfolio, making the stock its 14th largest holding. Two Sigma Securities LLC's holdings in Broadcom were worth $6,848,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also made changes to their positions in the company. Norges Bank acquired a new stake in Broadcom in the fourth quarter valued at about $24,252,196,000. Legal & General Group Plc acquired a new position in Broadcom during the 2nd quarter worth approximately $11,998,148,000. Bank of New York Mellon Corp acquired a new position in Broadcom during the 2nd quarter worth approximately $10,528,191,000. Jupiter Topco LLC purchased a new position in shares of Broadcom during the 2nd quarter worth approximately $7,396,271,000. Finally, Deutsche Bank AG purchased a new position in shares of Broadcom during the 2nd quarter worth approximately $5,661,216,000. Hedge funds and other institutional investors own 76.43% of the company's stock.

Broadcom Price Performance

AVGO stock opened at $364.38 on Thursday. The firm has a 50 day moving average of $382.99 and a 200-day moving average of $378.23. Broadcom Inc. has a 12-month low of $289.96 and a 12-month 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 $1.73 trillion, a price-to-earnings ratio of 46.54 and a beta of 1.44.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its quarterly earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share for the quarter, topping analysts' consensus estimates 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 for the quarter, compared to analysts' expectations of $29.24 billion. During the same quarter in the prior year, the firm posted $1.69 EPS. The company's revenue was up 85.5% compared to the same quarter last year. As a group, equities analysts expect that Broadcom Inc. will post 10.36 EPS for the current fiscal year.

Broadcom Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders 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 payout ratio is presently 33.21%.

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on AVGO shares. BMO Capital Markets lifted their price target on Broadcom from $455.00 to $575.00 and gave the company an "outperform" rating in a research note on Thursday, September 3rd. Citigroup reiterated a "buy" rating and issued a $515.00 price objective (up from $500.00) on shares of Broadcom in a research report on Friday, September 4th. Erste Group Bank reiterated a "hold" rating on shares of Broadcom in a research report on Tuesday, July 7th. Evercore set a $578.00 target price on Broadcom in a report on Thursday, September 3rd. Finally, Dbs Bank upgraded shares of Broadcom to a "moderate buy" rating in a research report on Thursday, June 18th. Thirty research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $505.97.

Broadcom News Summary

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom reported record AI semiconductor revenue of approximately $16.7 billion and projected that AI-related revenue could reach $230 billion by 2028. Custom AI accelerators are becoming a larger contributor to revenue and profits, supporting the long-term bullish case. Broadcom Forecasts $230 Billion in AI Semiconductor Revenue in 2028
• Positive Sentiment: The 2028 outlook has encouraged bullish analysts and investors, with some arguing that accelerating AI chip sales could eventually support a share price above $900. Cantor also raised its price target to $600, indicating substantial potential upside if Broadcom executes. Top Analyst sets jaw-dropping Broadcom stock target after earnings
• Positive Sentiment: Broadcom’s earnings call highlighted strong demand for custom AI accelerators and a multiyear customer pipeline. Increasing spending by major cloud and AI companies, including OpenAI, could expand the addressable market for Broadcom’s networking and custom silicon products. Broadcom Q3 2026 Earnings Call Transcript
• Neutral Sentiment: Technical coverage notes that AVGO has underperformed the broader market and remains well below its 52-week high. The next important signal will be whether the stock can stabilize after the post-earnings breakdown. GOOGL, AVGO, AMD and LITE
• Negative Sentiment: Fiscal fourth-quarter revenue guidance fell short of Wall Street expectations, creating concern that near-term growth may not match the market’s aggressive AI assumptions. Truist responded by lowering its price target, even while acknowledging the stronger long-term outlook. Truist cuts Broadcom stock target
• Negative Sentiment: Some investors view the $230 billion AI forecast as increasingly expensive to justify, given AVGO’s elevated valuation and execution requirements. The stock’s reaction shows that excellent results may not be enough when expectations and future growth are already exceptionally high. Broadcom: The $230 Billion AI Dream Is Getting Expensive

Insiders Place Their Bets

In other news, Director Gayla J. Delly sold 1,890 shares of Broadcom stock in a transaction on Wednesday, July 8th. The stock was sold at an average price of $385.38, for a total transaction of $728,368.20. Following the completion of the transaction, the director owned 31,326 shares of the company's stock, valued at $12,072,413.88. The trade was a 5.69% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Justine Page sold 1,602 shares of the business'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 completion of the sale, the director owned 17,426 shares in the company, valued at $6,514,884.36. This represents a 8.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 61,644 shares of company stock worth $24,016,214. 1.90% of the stock is owned by corporate insiders.

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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