Unisphere Establishment Reduces Stake in Broadcom Inc. $AVGO

Key Points

• Unisphere Establishment cut its Broadcom stake by 27.4% in the first quarter, selling 241,600 shares and retaining 641,600 shares valued at approximately $198.6 million. Institutional investors still own 76.43% of Broadcom.
• Analysts remain broadly bullish, with 28 Buy ratings and four Holds, producing a “Moderate Buy” consensus and an average price target of $493.24. Key catalysts include strong custom AI-chip demand and rising data-center spending.
• Broadcom reported quarterly EPS of $2.44 and revenue of $22.19 billion, exceeding estimates, while revenue increased 47.9% year over year. Risks include its high valuation, the stock trading below its 50-day average, and potential reductions in hyperscaler AI spending.

Unisphere Establishment reduced its stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 27.4% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 641,600 shares of the semiconductor manufacturer's stock after selling 241,600 shares during the quarter. Broadcom comprises about 1.7% of Unisphere Establishment's investment portfolio, making the stock its 17th biggest position. Unisphere Establishment's holdings in Broadcom were worth $198,582,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors have also added to or reduced their stakes in the stock. ROSS JOHNSON & Associates LLC increased its position in shares of Broadcom by 1,320.0% during the 4th quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer's stock valued at $25,000 after purchasing an additional 66 shares during the last quarter. SWAN Capital LLC lifted its position in Broadcom by 261.9% in the fourth quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer's stock worth $26,000 after buying an additional 55 shares during the last quarter. Networth Advisors LLC lifted its position in Broadcom by 546.2% in the first quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer's stock worth $26,000 after buying an additional 71 shares during the last quarter. Nvest Wealth Strategies Inc. purchased a new position in Broadcom during the fourth quarter worth $33,000. Finally, Family CFO Inc purchased a new position in Broadcom during the fourth quarter worth $35,000. 76.43% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on the stock. Weiss Ratings upgraded shares of Broadcom from a "buy (b-)" rating to a "buy (b)" rating in a research report on Wednesday, July 15th. Citigroup reaffirmed a "buy" rating on shares of Broadcom in a research note on Thursday, June 4th. KeyCorp reiterated an "overweight" rating and set a $575.00 price target (up from $500.00) 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 report on Thursday, June 4th. Finally, DA Davidson raised their price objective on shares of Broadcom from $375.00 to $400.00 and gave the stock a "neutral" rating in a research note on Thursday, June 4th. Twenty-eight equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat, Broadcom presently has an average rating of "Moderate Buy" and an average target price of $493.24.

Broadcom Trading Up 0.3%

NASDAQ AVGO opened at $383.22 on Tuesday. The stock has a market cap of $1.82 trillion, a PE ratio of 63.87, a PEG ratio of 0.73 and a beta of 1.45. Broadcom Inc. has a 12 month low of $281.61 and a 12 month high of $495.00. The company's 50-day moving average price is $396.67 and its 200-day moving average price is $367.13. The company has a current ratio of 2.24, a quick ratio of 2.01 and a debt-to-equity ratio of 0.71.

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

Broadcom Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Monday, June 22nd were paid a dividend of $0.65 per share. This represents a $2.60 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend was Monday, June 22nd. Broadcom's payout ratio is currently 43.33%.

Insider Activity at Broadcom

In other Broadcom news, Director Gayla J. Delly sold 1,890 shares of the firm's 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 transaction, the director directly owned 31,326 shares in the company, valued at $12,072,413.88. This trade 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 Justine Page sold 1,602 shares of Broadcom stock in a transaction on Monday, June 29th. The shares were sold at an average price of $373.86, for a total value of $598,923.72. Following the sale, the director directly owned 17,426 shares of the company's stock, valued at approximately $6,514,884.36. This trade 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 sold 61,644 shares of company stock worth $24,016,214. Insiders own 1.90% of the company's stock.

Key Stories Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Alphabet’s increased AI spending is a major catalyst. Alphabet reportedly plans $195 billion to $205 billion in capital expenditures, while its cloud business posted strong growth. Because Broadcom supplies Alphabet with custom AI processors and related infrastructure, the spending outlook points to potentially higher demand for Broadcom’s technology. Broadcom May Be the Biggest Winner From Alphabet's Earnings
• Positive Sentiment: Custom-silicon demand and new customer wins are strengthening the growth story. Investor commentary highlighted Broadcom’s momentum in custom AI chips, with demand from large technology companies helping drive expectations for continued expansion. Broadcom Rose on Strong Custom Silicon Demand and New Client Wins
• Positive Sentiment: Broadcom is viewed as a key beneficiary of data-center infrastructure spending. Analysts and financial writers point to its AI networking, custom accelerators and semiconductor infrastructure products as ways to participate in AI growth beyond the dominant GPU market. 3 Top AI Stocks to Buy Now With Data Center Infrastructure Spending Set to Surge
• Neutral Sentiment: Broadcom’s expanded Samsung relationship may improve supply visibility. J.P. Morgan said Samsung is expected to provide most of Broadcom’s memory needs through 2030, supporting execution but also increasing reliance on a major supplier. Broadcom's Expanded Samsung Pact Shows AI Trade Is Still All About Memory
• Negative Sentiment: High valuation and AI capital-spending concerns remain the principal risks. With a lofty earnings multiple and the stock below its 50-day average, investors may be sensitive to any evidence that hyperscalers are slowing or reassessing AI investment. Recent coverage frames potential capex fears as a buying opportunity, but the risk could still create volatility. Broadcom's The Perfect Buy as Capex Fears Materialize

Broadcom Company 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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