Wedbush Fund Advisers LLC Buys 3,992 Shares of Broadcom Inc. $AVGO

Key Points

• Wedbush Fund Advisers increased its Broadcom stake by 3.1% in the second quarter, adding 3,992 shares to own 134,435 shares worth approximately $50.8 million. Institutional investors collectively own 76.43% of Broadcom.
• Broadcom reported quarterly adjusted earnings of $3.32 per share and revenue of $29.59 billion, exceeding analyst expectations, while revenue rose 85.5% year over year. The company declared a quarterly dividend of $0.65 per share.
• Analyst sentiment remains favorable, with 31 Buy ratings and four Holds producing a “Moderate Buy” consensus and a $500.60 average price target. However, concerns include slightly below-consensus fourth-quarter guidance, valuation, margin pressure, customer concentration and insider selling.

Wedbush Fund Advisers LLC grew its stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 3.1% in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 134,435 shares of the semiconductor manufacturer's stock after acquiring an additional 3,992 shares during the period. Broadcom comprises about 4.5% of Wedbush Fund Advisers LLC's holdings, making the stock its 9th biggest position. Wedbush Fund Advisers LLC's holdings in Broadcom were worth $50,783,000 at the end of the most recent reporting period.

Several other institutional investors have also modified their holdings of the company. Brighton Jones LLC raised its holdings in Broadcom by 21.8% during the fourth quarter. Brighton Jones LLC now owns 29,683 shares of the semiconductor manufacturer's stock worth $6,882,000 after purchasing an additional 5,322 shares during the last quarter. Revolve Wealth Partners LLC grew its holdings in Broadcom by 10.4% in the fourth quarter. Revolve Wealth Partners LLC now owns 7,997 shares of the semiconductor manufacturer's stock valued at $1,854,000 after purchasing an additional 756 shares during the last quarter. United Bank grew its holdings in Broadcom by 76.5% in the first quarter. United Bank now owns 2,339 shares of the semiconductor manufacturer's stock valued at $392,000 after purchasing an additional 1,014 shares during the last quarter. Sivia Capital Partners LLC increased its position in shares of Broadcom by 10.1% in the second quarter. Sivia Capital Partners LLC now owns 12,693 shares of the semiconductor manufacturer's stock valued at $3,499,000 after buying an additional 1,160 shares in the last quarter. Finally, Capital & Planning LLC increased its position in shares of Broadcom by 10.5% in the second quarter. Capital & Planning LLC now owns 3,983 shares of the semiconductor manufacturer's stock valued at $1,098,000 after buying an additional 378 shares in the last quarter. Hedge funds and other institutional investors own 76.43% of the company's stock.

Analysts Set New Price Targets

Several equities research analysts recently commented on the stock. Truist Financial decreased their price objective on shares of Broadcom from $550.00 to $520.00 and set a "buy" rating on the stock in a research report on Thursday. Susquehanna restated a "positive" rating and set a $490.00 target price (up from $450.00) on shares of Broadcom in a report on Thursday, May 28th. Evercore set a $578.00 target price on shares of Broadcom in a research report on Thursday. Weiss Ratings downgraded shares of Broadcom from a "buy (b)" rating to a "buy (b-)" rating in a report on Thursday, July 30th. Finally, Erste Group Bank reiterated a "hold" rating on shares of Broadcom in a research report on Tuesday, July 7th. Thirty-one investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $500.60.

Broadcom News Roundup

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.

Insider Activity

In related news, Director Justine Page sold 1,602 shares of the company's stock in a transaction that occurred on Monday, June 29th. The shares were sold at an average price of $373.86, for a total transaction of $598,923.72. Following the transaction, the director owned 17,426 shares of the company's stock, valued at approximately $6,514,884.36. This represents a 8.42% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Gayla Delly sold 1,890 shares of the firm'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 transaction of $728,368.20. Following the sale, the director owned 31,326 shares in the company, valued at approximately $12,072,413.88. This trade represents a 5.69% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 61,644 shares of company stock worth $24,016,214. Corporate 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 quick ratio of 2.01, a current ratio of 2.50 and a debt-to-equity ratio of 0.57. The company has a market capitalization of $1.70 trillion, a P/E ratio of 45.71, a P/E/G ratio of 0.68 and a beta of 1.44. Broadcom Inc. has a 52-week low of $289.96 and a 52-week high of $495.00. The stock's fifty day simple moving average is $383.57 and its 200-day simple moving average is $377.23.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its quarterly earnings data on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 EPS for the quarter, topping 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 return on equity of 48.33% and a net margin of 42.94%.The firm's quarterly revenue was up 85.5% compared to the same quarter last year. During the same quarter last year, the business posted $1.69 EPS. As a group, equities research analysts forecast that Broadcom Inc. will post 10.25 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Monday, September 21st will be given a $0.65 dividend. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend is Monday, September 21st. Broadcom's payout ratio is currently 33.21%.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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