Whetstone Capital Advisors LLC Makes New Investment in Broadcom Inc. $AVGO

Key Points

• Whetstone Capital Advisors acquired 4,395 Broadcom shares worth approximately $1.66 million, while institutional investors collectively own 76.43% of the stock.
• Wall Street remains broadly bullish: 28 analysts rate Broadcom a Buy, with a consensus “Moderate Buy” rating and an average price target of $509.04.
• Broadcom exceeded quarterly expectations with $3.32 in adjusted EPS and $29.59 billion in revenue, up 85.5% year over year; it also declared a $0.65 quarterly dividend, yielding about 0.7%.

Whetstone Capital Advisors LLC acquired a new position in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund acquired 4,395 shares of the semiconductor manufacturer's stock, valued at approximately $1,660,000. Broadcom accounts for about 0.4% of Whetstone Capital Advisors LLC's holdings, making the stock its 29th largest holding.

Other large investors have also recently made changes to their positions in the company. Geode Capital Management LLC lifted its position in Broadcom by 1.4% during the 4th quarter. Geode Capital Management LLC now owns 111,277,280 shares of the semiconductor manufacturer's stock worth $38,396,634,000 after acquiring an additional 1,548,699 shares during the period. Norges Bank acquired a new position in shares of Broadcom in the fourth quarter valued at about $24,252,196,000. Bank of America Corp DE increased its holdings in shares of Broadcom by 4.6% in the second quarter. Bank of America Corp DE now owns 61,423,013 shares of the semiconductor manufacturer's stock valued at $23,202,543,000 after purchasing an additional 2,685,916 shares during the period. Wellington Management Group LLP raised its stake in shares of Broadcom by 3.8% in the second quarter. Wellington Management Group LLP now owns 51,580,703 shares of the semiconductor manufacturer's stock worth $19,484,611,000 after purchasing an additional 1,892,721 shares during the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in shares of Broadcom by 2.9% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 40,180,530 shares of the semiconductor manufacturer's stock worth $15,178,195,000 after purchasing an additional 1,140,598 shares during the last quarter. 76.43% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on the company. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and issued a $515.00 target price (up from $430.00) on shares of Broadcom in a research report on Thursday, June 4th. Rosenblatt Securities began coverage on shares of Broadcom in a research report on Thursday, September 3rd. They set a "buy" rating and a $600.00 price target for the company. Mizuho lifted their price objective on shares of Broadcom from $480.00 to $530.00 and gave the company an "outperform" rating in a research note on Thursday, June 4th. Benchmark increased their price objective on shares of Broadcom from $485.00 to $545.00 and gave the stock a "buy" rating in a research note on Thursday, June 4th. Finally, Dbs Bank upgraded shares of Broadcom to a "moderate buy" rating in a research report on Thursday, June 18th. One investment analyst has rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $509.04.

Insider Buying and Selling

In related news, Director Justine Page sold 1,602 shares of the stock in a transaction 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 sale, the director directly 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 this hyperlink. Also, insider Mark Brazeal sold 25,000 shares of the firm's stock in a transaction on Friday, July 10th. The shares were sold at an average price of $401.33, for a total transaction of $10,033,250.00. Following the sale, the insider owned 194,989 shares in the company, valued at approximately $78,254,935.37. This represents a 11.36% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 53,492 shares of company stock valued at $20,840,292. Corporate insiders own 1.90% of the company's stock.

Broadcom Stock Up 2.3%

Shares of AVGO stock opened at $347.30 on Friday. Broadcom Inc. has a twelve month low of $289.96 and a twelve month high of $495.00. The stock has a market cap of $1.66 trillion, a P/E ratio of 44.36 and a beta of 1.44. The stock has a 50 day moving average of $379.76 and a 200 day moving average of $379.16. The company has a current ratio of 2.50, a quick ratio of 2.29 and a debt-to-equity ratio of 0.57.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its quarterly earnings data on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 EPS for the quarter, topping the consensus estimate of $3.22 by $0.10. The business had revenue of $29.59 billion for the quarter, compared to analyst estimates of $29.24 billion. Broadcom had a return on equity of 48.33% and a net margin of 42.94%.The business's quarterly revenue was up 85.5% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.69 EPS. As a group, sell-side analysts expect that Broadcom Inc. will post 10.36 EPS for the current year.

Broadcom Dividend Announcement

The company also recently announced 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 0.7%. The ex-dividend date is Monday, September 21st. Broadcom's payout ratio is currently 33.21%.

Key Stories Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s custom-chip opportunity remains the main bullish catalyst. Management forecasts AI semiconductor revenue of approximately $115 billion in fiscal 2027 and $230 billion in fiscal 2028, while recent reports say AI chip orders are tripling. Investors are looking for evidence that these orders will translate into revenue and earnings growth. Investors Want to Know When Broadcom’s Custom Hyperscaler Chips Will Move Share Prices
• Positive Sentiment: Analysts and market commentators see substantial upside after the summer selloff. Jim Cramer called AVGO potentially “too cheap to ignore,” while other coverage points to a wide gap between the current share price and Wall Street price targets. Jim Cramer on Broadcom: The Stock May Be Too Cheap to Ignore
• Positive Sentiment: Broadcom is viewed as a key supplier to the next phase of AI infrastructure, including custom accelerators, networking and inference hardware. Industry commentary also highlights potential growth in enterprise AI and VMware private-cloud demand, although the evidence for that software trend is mixed. Enterprise AI to Boost Broadcom’s Software Business
• Neutral Sentiment: The broader semiconductor rebound helped lift AVGO, but the stock’s performance is still being driven more by expectations than by newly announced company-specific results. Investors are waiting for custom-hyperscaler chip deployments to produce visible financial impact.
• Negative Sentiment: Shares have faced pressure after Anthropic and OpenAI leaders urged caution around rapidly scaling advanced AI models. That has raised concerns that hyperscalers could slow infrastructure spending, even though Broadcom’s CEO has reportedly maintained the company’s AI revenue targets. Broadcom Shares Fell as Slower AI Development Raised Demand Concerns

About Broadcom

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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