Wealth Effects LLC Makes New Investment in Broadcom Inc. $AVGO

Wealth Effects LLC bought a new stake in shares of Broadcom Inc. (NASDAQ:AVGO) in the second quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor bought 13,149 shares of the semiconductor manufacturer’s stock, valued at approximately $4,967,000. Broadcom accounts for approximately 1.3% of Wealth Effects LLC’s portfolio, making the stock its 15th biggest holding.

Several other large investors also recently modified their holdings of the stock. Fullerton Advisors LLC raised its position in shares of Broadcom by 1.3% in the 1st quarter. Fullerton Advisors LLC now owns 1,989 shares of the semiconductor manufacturer’s stock valued at $616,000 after buying an additional 25 shares in the last quarter. NORTHSTAR ASSET MANAGEMENT Co lifted its holdings in shares of Broadcom by 0.5% during the 1st quarter. NORTHSTAR ASSET MANAGEMENT Co now owns 5,350 shares of the semiconductor manufacturer’s stock worth $1,656,000 after acquiring an additional 25 shares during the period. RFG Holdings Inc. boosted its position in shares of Broadcom by 0.3% during the 1st quarter. RFG Holdings Inc. now owns 8,499 shares of the semiconductor manufacturer’s stock worth $2,631,000 after acquiring an additional 26 shares in the last quarter. Yukon Wealth Management Inc. increased its stake in Broadcom by 1.1% in the first quarter. Yukon Wealth Management Inc. now owns 2,501 shares of the semiconductor manufacturer’s stock valued at $774,000 after acquiring an additional 26 shares during the last quarter. Finally, NerdWallet Wealth Partners LLC increased its stake in Broadcom by 2.6% in the second quarter. NerdWallet Wealth Partners LLC now owns 1,057 shares of the semiconductor manufacturer’s stock valued at $399,000 after acquiring an additional 27 shares during the last quarter. 76.43% of the stock is owned by institutional investors and hedge funds.

Broadcom Stock Down 0.3%

Shares of NASDAQ:AVGO opened at $355.59 on Thursday. The firm has a market cap of $1.69 trillion, a P/E ratio of 59.27, a P/E/G ratio of 0.68 and a beta of 1.45. The company has a quick ratio of 2.01, a current ratio of 2.24 and a debt-to-equity ratio of 0.71. Broadcom Inc. has a 12-month low of $287.17 and a 12-month high of $495.00. The business has a fifty day simple moving average of $386.72 and a 200 day simple moving average of $376.03.

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

Broadcom Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 22nd were issued a $0.65 dividend. The ex-dividend date was Monday, June 22nd. This represents a $2.60 annualized dividend and a yield of 0.7%. Broadcom’s dividend payout ratio is presently 43.33%.

Analysts Set New Price Targets

Several research firms have weighed in on AVGO. BMO Capital Markets assumed coverage on Broadcom in a research note on Thursday, August 20th. They set an “outperform” rating and a $455.00 target price for the company. Oppenheimer restated an “outperform” rating and set a $535.00 price objective (up from $450.00) on shares of Broadcom in a research report on Thursday, June 4th. KeyCorp reissued an “overweight” rating and issued a $575.00 price objective (up from $500.00) on shares of Broadcom in a research note on Thursday, June 4th. Weiss Ratings downgraded Broadcom from a “buy (b)” rating to a “buy (b-)” rating in a research note on Thursday, July 30th. Finally, DA Davidson raised their price objective on shares of Broadcom from $375.00 to $400.00 and gave the company a “neutral” rating in a report on Thursday, June 4th. Twenty-nine equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. According to MarketBeat.com, Broadcom currently has an average rating of “Moderate Buy” and a consensus target price of $491.97.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Analyst support remains strong: BMO initiated coverage with an Outperform rating and a $455 price target, while RBC reaffirmed its Sector Perform rating with a $400 target—both implying potential upside from the recently reported trading level. BMO starts Broadcom at Outperform with $455 target
• Positive Sentiment: AI infrastructure demand remains the core bullish thesis: Broadcom is positioned to benefit from custom AI accelerators, networking equipment, and the shift toward inference and agentic AI workloads. Commentary also suggests a potential “next $100 billion” AI business opportunity if hyperscaler demand continues. Broadcom’s next $100 billion AI business is taking shape
• Positive Sentiment: VMware commercial traction is encouraging: Rackspace launched a managed multitenant cloud based on Broadcom’s VMware Cloud Foundation 9.1, supporting regulated workloads, Kubernetes, and AI applications. Broadcom debuts VMware Cloud Foundation 9.1
• Neutral Sentiment: Earnings are the near-term catalyst: Investors are awaiting Broadcom’s results and guidance for evidence that AI demand, custom-chip growth, and VMware integration can offset rising expectations. Its prior quarter showed 47.9% year-over-year revenue growth and earnings above consensus.
• Negative Sentiment: Customer concentration is a key risk: Analysts caution that dependence on a small number of large hyperscale customers could make revenue vulnerable to spending changes, in-house chip development, or order delays. Broadcom’s real risk is its customer list
• Negative Sentiment: Valuation and financial concerns are weighing on sentiment: Broadcom’s premium multiple, potential margin contraction, vendor-financing expansion, and reports of increased credit-default-swap concerns have raised questions about execution and balance-sheet risk. Broadcom Q3 earnings preview

Insider Activity

In other news, Director Harry L. You purchased 1,000 shares of the stock in a transaction on Thursday, June 11th. The stock was purchased at an average price of $373.57 per share, for a total transaction of $373,570.00. Following the acquisition, the director owned 38,466 shares in the company, valued at $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 Securities & Exchange Commission, which is available at the SEC website. Also, Director Justine Page sold 1,602 shares of the firm’s stock in a transaction that occurred on Monday, June 29th. The stock was 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. The trade was a 8.42% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 61,644 shares of company stock worth $24,016,214. 1.90% of the stock is owned by company insiders.

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.