Broadcom Inc. $AVGO Shares Purchased by Connective Capital Management LLC

Key Points

• Connective Capital Management LLC increased its Broadcom stake by 1,569.1% in the second quarter, holding 15,089 shares valued at approximately $5.7 million. Institutional investors and hedge funds collectively own 76.43% of Broadcom.
• Broadcom reported strong quarterly results, with revenue up 85.5% year over year to $29.59 billion and EPS of $3.32, beating analyst expectations. Analysts maintain a generally bullish view, with a consensus “Moderate Buy” rating and a $509.04 price target.
• Broadcom’s AI growth outlook remains a key catalyst, though valuation, customer concentration, macroeconomic conditions and VMware-related risks remain concerns. The company also declared a quarterly dividend of $0.65 per share, representing a 0.8% annualized yield.

Connective Capital Management LLC raised its stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 1,569.1% during the 2nd quarter, according to the company in its most recent filing with the SEC. The firm owned 15,089 shares of the semiconductor manufacturer's stock after purchasing an additional 14,185 shares during the quarter. Broadcom accounts for about 4.1% of Connective Capital Management LLC's investment portfolio, making the stock its 8th biggest position. Connective Capital Management LLC's holdings in Broadcom were worth $5,700,000 as of its most recent filing with the SEC.

A number of other large investors have also made changes to their positions in the stock. Arizona State Retirement System lifted its stake in shares of Broadcom by 1.1% in the second quarter. Arizona State Retirement System now owns 1,248,090 shares of the semiconductor manufacturer's stock valued at $471,466,000 after buying an additional 14,016 shares during the period. Waverly Advisors LLC grew its position in Broadcom by 29.8% during the second quarter. Waverly Advisors LLC now owns 350,604 shares of the semiconductor manufacturer's stock worth $132,441,000 after buying an additional 80,462 shares in the last quarter. Carmignac Gestion increased its stake in Broadcom by 150.0% during the second quarter. Carmignac Gestion now owns 1,354,155 shares of the semiconductor manufacturer's stock valued at $511,485,000 after acquiring an additional 812,504 shares during the period. Empirical Finance LLC raised its holdings in Broadcom by 4.1% in the 2nd quarter. Empirical Finance LLC now owns 148,958 shares of the semiconductor manufacturer's stock valued at $56,269,000 after acquiring an additional 5,920 shares in the last quarter. Finally, Nykredit A S acquired a new position in Broadcom in the 2nd quarter valued at approximately $685,631,000. Institutional investors and hedge funds own 76.43% of the company's stock.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: CEO Hock Tan said Broadcom’s AI revenue targets have not changed despite calls from Anthropic and OpenAI executives to slow development of increasingly powerful models. The comments helped reinforce management’s confidence in sustained demand. Broadcom CEO delivers blunt verdict on AI’s biggest debate right now
• Positive Sentiment: Analysts and bullish commentators point to Broadcom’s 221% year-over-year AI revenue growth, strong guidance and potential for significant upside following the recent selloff. Several reports argue that the stock’s valuation is attractive relative to its growth and custom-chip competitors. Wall Street Sees 56% Upside in Broadcom After Summer Selloff
• Positive Sentiment: Broadcom’s reported supply constraint may be more significant than demand weakness. Piper Sandler estimated that demand for the company’s AI inference ASICs is roughly twice available supply and assigned an Overweight rating with a $460 price target. Broadcom’s Real Constraint Isn’t Demand. It’s Supply.
• Positive Sentiment: Recent coverage also cites new fourth-quarter revenue guidance, share-repurchase activity and continued dividend support as potential catalysts for shareholder returns. Broadcom Could Be 47% Below Fair Value
• Neutral Sentiment: Commentary remains divided: Broadcom’s earnings growth and AI exposure are viewed favorably, while valuation, macroeconomic conditions and customer concentration remain important risks for investors. Bull v. Bear: AVGO Shows Strong Earnings Growth, Macro Risks Weigh on Stock
• Negative Sentiment: Shares declined as Anthropic’s CEO called for a pause in rapidly scaling AI systems and OpenAI’s leadership expressed similar caution. Investors reassessed whether slower AI model development could reduce future orders for chips, networking equipment and custom accelerators. Broadcom Shares Fell As Slower AI Development Raised Demand Concerns
• Negative Sentiment: Bearish analysis highlights potential margin pressure, financing needs and regulatory concerns related to VMware, adding uncertainty despite Broadcom’s strong AI outlook. Broadcom’s strong AI growth faces margin, financing risks

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on AVGO shares. Zacks Research lowered Broadcom from a "strong-buy" rating to a "hold" rating in a report on Thursday, May 21st. Royal Bank Of Canada began coverage on shares of Broadcom in a report on Thursday, September 3rd. They issued an "outperform" rating on the stock. Lake Street Capital upgraded shares of Broadcom to a "buy" rating in a research report on Thursday, September 3rd. Mizuho upped their target price 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. Finally, Bank of America raised their price target on shares of Broadcom from $450.00 to $530.00 and gave the stock a "buy" rating in a research note on Thursday, June 4th. One investment analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $509.04.

Insider Buying and Selling

In other Broadcom news, Director Justine Page sold 1,602 shares of the stock in a transaction dated 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 owned 17,426 shares of the company's stock, valued at $6,514,884.36. This represents a 8.42% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Gayla Delly sold 1,890 shares of the business's stock in a transaction dated Wednesday, July 8th. The stock was sold at an average price of $385.38, for a total transaction of $728,368.20. Following the completion of the transaction, the director directly owned 31,326 shares of the company's stock, valued at approximately $12,072,413.88. This represents a 5.69% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 53,492 shares of company stock worth $20,840,292 in the last 90 days. Corporate insiders own 1.90% of the company's stock.

Broadcom Stock Up 0.1%

Shares of AVGO opened at $339.51 on Thursday. The company has a market capitalization of $1.62 trillion, a P/E ratio of 43.36 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 business's 50 day simple moving average is $380.83 and its 200-day simple moving average is $378.97. 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 issued its quarterly earnings data on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.22 by $0.10. The firm had revenue of $29.59 billion during the quarter, compared to the consensus estimate of $29.24 billion. Broadcom had a return on equity of 48.33% and a net margin of 42.94%.The business's revenue for the quarter was up 85.5% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.69 EPS. As a group, sell-side analysts predict that Broadcom Inc. will post 10.36 EPS for the current fiscal year.

Broadcom Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Monday, September 21st will be given a dividend of $0.65 per share. The ex-dividend date is Monday, September 21st. This represents a $2.60 annualized dividend and a yield of 0.8%. Broadcom's dividend payout ratio is 33.21%.

Broadcom Company Profile

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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