Veratis Advisors Inc. Purchases New Position in Broadcom Inc. $AVGO

Key Points

• Veratis Advisors purchased 2,093 Broadcom shares worth approximately $791,000 in the second quarter, making AVGO 0.6% of its portfolio. Institutional investors collectively own 76.43% of the company.
• 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 declared a quarterly dividend of $0.65 per share, equivalent to a 0.7% annual yield.
• Analysts maintain a generally bullish view, with a consensus “Moderate Buy” rating and a $500.60 price target. However, investors remain focused on the slightly weaker-than-expected fourth-quarter revenue outlook, margin pressure and customer concentration risks.

Veratis Advisors Inc. purchased a new stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) during the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund purchased 2,093 shares of the semiconductor manufacturer's stock, valued at approximately $791,000. Broadcom makes up 0.6% of Veratis Advisors Inc.'s holdings, making the stock its 24th largest holding.

Several other large investors have also recently added to or reduced their stakes in AVGO. Cornerstone Advisors LLC acquired a new position in Broadcom during the 2nd quarter worth about $92,522,000. Bank of America Corp DE increased its position in Broadcom by 1.5% in the 1st quarter. Bank of America Corp DE now owns 58,737,097 shares of the semiconductor manufacturer's stock valued at $18,179,719,000 after acquiring an additional 894,564 shares in the last quarter. Clear Harbor Asset Management LLC acquired a new stake in Broadcom in the 2nd quarter valued at about $3,302,000. Bartlett & CO. Wealth Management LLC raised its stake in shares of Broadcom by 129.3% in the first quarter. Bartlett & CO. Wealth Management LLC now owns 110,048 shares of the semiconductor manufacturer's stock worth $34,061,000 after acquiring an additional 62,050 shares during the last quarter. Finally, First Bank & Trust raised its stake in shares of Broadcom by 17.2% in the second quarter. First Bank & Trust now owns 10,503 shares of the semiconductor manufacturer's stock worth $3,968,000 after acquiring an additional 1,545 shares during the last quarter. 76.43% of the stock is owned by institutional investors.

Insider Buying and Selling

In related news, Director Harry L. You purchased 1,000 shares of Broadcom stock in a transaction dated Thursday, June 11th. The shares were acquired at an average cost of $373.57 per share, for a total transaction of $373,570.00. Following the transaction, the director directly owned 38,466 shares of the company's stock, valued at approximately $14,369,743.62. This trade represents a 2.67% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, Director Justine Page sold 1,602 shares of Broadcom stock in a transaction 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 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. In the last quarter, insiders sold 61,644 shares of company stock worth $24,016,214. Company insiders own 1.90% of the company's stock.

Broadcom Stock Up 0.2%

Shares of NASDAQ:AVGO opened at $357.89 on Friday. The company has a debt-to-equity ratio of 0.57, a current ratio of 2.50 and a quick ratio of 2.01. The stock has a market cap of $1.70 trillion, a price-to-earnings ratio of 45.71, a P/E/G ratio of 0.68 and a beta of 1.44. The company has a 50 day moving average of $383.57 and a 200-day moving average of $377.23. Broadcom Inc. has a one year low of $289.96 and a one year high of $495.00.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its quarterly earnings data on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share for the quarter, beating the consensus estimate of $3.22 by $0.10. Broadcom had a net margin of 42.94% and a return on equity of 48.33%. The business had revenue of $29.59 billion for the quarter, compared to analyst estimates of $29.24 billion. During the same period in the prior year, the business posted $1.69 earnings per share. Broadcom's revenue was up 85.5% compared to the same quarter last year. On average, sell-side analysts forecast that Broadcom Inc. will post 10.25 earnings per share for the current year.

Broadcom Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Monday, September 21st will be paid a $0.65 dividend. The ex-dividend date of this dividend is Monday, September 21st. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.7%. Broadcom's dividend payout ratio is 43.33%.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on AVGO. Wall Street Zen lowered shares of Broadcom from a "strong-buy" rating to a "buy" rating in a research report on Saturday, July 18th. Susquehanna restated a "positive" rating and issued a $490.00 price objective (up from $450.00) on shares of Broadcom in a research report on Thursday, May 28th. Morgan Stanley reaffirmed an "overweight" rating and set a $505.00 price objective (up from $502.00) on shares of Broadcom in a report on Thursday. Evercore set a $578.00 price objective on Broadcom in a research report on Thursday. Finally, Royal Bank Of Canada assumed coverage on Broadcom in a research note on Thursday. They issued an "outperform" rating for the company. Thirty-one investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $500.60.

Trending Headlines about Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Investor interest in Broadcom’s AI opportunity remains strong. AI semiconductor revenue surged 221% year over year to $16.7 billion, while management raised its AI revenue outlook to approximately $115 billion for fiscal 2027 and $230 billion for fiscal 2028. Several analysts and commentators view the selloff as a buying opportunity. The Path to $230 Billion: Broadcom Outlines the Next Phase of Its AI Growth Story
• Positive Sentiment: Analysts continue to see substantial upside despite some target reductions. Truist maintained a buy rating with a $520 target, while other firms cited targets ranging from $575 to $600. Macquarie upgraded Broadcom to Outperform, citing strong custom-chip growth and reduced concerns about customers developing chips internally. These Analysts Increase Their Forecasts On Broadcom Following Upbeat Q3 Earnings
• Positive Sentiment: Unusual options activity provided another bullish trading signal: investors purchased roughly 373,000 call options, about 26% above average call volume. Broadcom also declared a quarterly dividend of $0.65 per share, payable September 30 to eligible shareholders.
• Neutral Sentiment: Broadcom beat quarterly expectations with adjusted earnings of $3.32 per share versus a $3.22 consensus and revenue of $29.59 billion. The company’s long-term AI demand commentary was strong, but investors are focused on whether supply, power, land and data-center construction constraints can limit near-term shipments. Broadcom CEO Says AI Demand Could Be Significantly Higher
• Negative Sentiment: The main pressure remains Broadcom’s fourth-quarter revenue outlook of $34.8 billion, slightly below Wall Street’s roughly $35.0 billion expectation. The modest guidance miss, concerns about margin compression and customer concentration—including major AI customers—caused the initial sell-the-news reaction despite excellent AI growth.
• Negative Sentiment: Third Point disclosed that it exited its remaining Broadcom position during the second quarter. Although the holding was relatively small, the sale adds to caution around elevated valuation and expectations for the AI-chip cycle.

Broadcom 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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