William John Sempolinski Buys New Shares in Broadcom Inc. $AVGO

Key Points

• William John Sempolinski acquired 3,085 Broadcom shares during the second quarter, valued at approximately $1.17 million. Institutional investors collectively own 76.43% of AVGO.
• Broadcom reported quarterly EPS of $3.32, exceeding estimates of $3.22, while revenue rose 85.5% year over year to $29.59 billion. The company declared a quarterly dividend of $0.65 per share, equivalent to a 0.8% annualized yield.
• Despite the stock trading down 4.8%, analysts remain broadly bullish, with a consensus “Moderate Buy” rating and an average price target of $509.04; however, investors remain concerned about valuation, customer concentration, execution and the sustainability of AI spending.

William John Sempolinski acquired a new position in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor acquired 3,085 shares of the semiconductor manufacturer's stock, valued at approximately $1,165,000.

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

Broadcom Stock Down 4.8%

AVGO opened at $344.72 on Tuesday. The firm has a market capitalization of $1.65 trillion, a P/E ratio of 44.03 and a beta of 1.44. Broadcom Inc. has a one year low of $289.96 and a one year high of $495.00. The company has a fifty day moving average price of $382.45 and a 200-day moving average price of $378.79. The company has a debt-to-equity ratio of 0.57, a current ratio of 2.50 and a quick ratio of 2.29.

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, beating 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 the consensus estimate of $29.24 billion. During the same quarter last year, the business posted $1.69 earnings per share. The company's revenue for the quarter was up 85.5% on a year-over-year basis. Equities research analysts expect that Broadcom Inc. will post 10.36 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

The firm also recently declared 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. The ex-dividend date of this dividend is Monday, September 21st. This represents a $2.60 dividend on an annualized basis and a yield of 0.8%. Broadcom's dividend payout ratio (DPR) is presently 33.21%.

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on AVGO. Citigroup restated a "buy" rating and issued a $515.00 target price (up from $500.00) on shares of Broadcom in a report on Friday, September 4th. Bank of America boosted their price target on shares of Broadcom from $450.00 to $530.00 and gave the stock a "buy" rating in a report on Thursday, June 4th. Rosenblatt Securities assumed coverage on Broadcom in a research report on Thursday, September 3rd. They set a "buy" rating and a $600.00 price target for the company. Benchmark raised their price objective on shares of Broadcom from $485.00 to $545.00 and gave the stock a "buy" rating in a report on Thursday, June 4th. Finally, Cantor Fitzgerald increased their target price on shares of Broadcom from $525.00 to $600.00 and gave the company an "overweight" rating in a research report on Thursday, September 3rd. One analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $509.04.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom remains a favored way to gain exposure to AI while receiving dividend income. Its custom AI-chip business is expected to continue expanding rapidly as hyperscalers and AI companies build additional computing capacity. 3 Stocks That Offer AI Exposure and Dividends
• Positive Sentiment: CEO Hock Tan reportedly said demand already exceeds Broadcom’s $115 billion AI forecast, with AI revenue projected to double in fiscal 2027 and again in 2028. Accelerating shipments of Ironwood chips to Anthropic could further strengthen Broadcom’s custom-hardware opportunity. Broadcom CEO Hock Tan Says Demand Already Exceeds Broadcom’s $115 Billion AI Forecast
• Positive Sentiment: Mizuho analyst Vijay Rakesh expects AVGO to rally toward a new all-time high over the next 12 months, supporting the longer-term bullish case despite recent weakness. Wall Street Sets Broadcom Stock Price for the Next 12 Months
• Neutral Sentiment: Analyst commentary remains divided: Broadcom is viewed as a major beneficiary of AI demand, but Vertiv is considered better positioned on valuation, earnings momentum and near-term upside. Vertiv vs. Broadcom: Which AI Infrastructure Stock Has More Upside?
• Negative Sentiment: Investors are questioning whether AI spending can maintain its current pace. Broadcom also faces concerns about elevated valuation, customer concentration, margins and execution, while reports cite a failure to meet Wall Street’s fiscal fourth-quarter revenue expectations. Marvell Falls as AI Pacing Debate Collides With Fed Week

Insider Transactions at Broadcom

In related news, insider Mark Brazeal sold 25,000 shares of Broadcom stock in a transaction that occurred on Friday, July 10th. The stock was sold at an average price of $401.33, for a total transaction of $10,033,250.00. Following the sale, the insider directly owned 194,989 shares in the company, valued at $78,254,935.37. The trade was a 11.36% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Justine Page sold 1,602 shares of the company'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 directly 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 SEC filing for this sale provides additional information. In the last ninety days, insiders sold 58,317 shares of company stock valued at $22,745,733. Company insiders own 1.90% of the company's stock.

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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