Magnolia Capital Advisors LLC Acquires Shares of 14,645 Broadcom Inc. $AVGO

Magnolia Capital Advisors LLC bought a new position in Broadcom Inc. (NASDAQ:AVGO) in the 2nd quarter, Holdings Channel.com reports. The institutional investor bought 14,645 shares of the semiconductor manufacturer’s stock, valued at approximately $5,532,000. Broadcom makes up about 0.9% of Magnolia Capital Advisors LLC’s investment portfolio, making the stock its 27th biggest holding.

Several other hedge funds and other institutional investors have also recently made changes to their positions in AVGO. Arini Capital Management Ltd purchased a new stake in shares of Broadcom during the second quarter valued at approximately $7,555,000. Strategic Global Advisors LLC purchased a new position in Broadcom in the 2nd quarter worth approximately $27,247,000. Port Capital LLC bought a new position in Broadcom in the 2nd quarter valued at approximately $201,000. Vantage Point Financial LLC bought a new position in Broadcom in the 2nd quarter valued at approximately $526,000. Finally, Light Street Capital Management LLC purchased a new stake in Broadcom during the 2nd quarter valued at $57,890,000. Institutional investors own 76.43% of the company’s stock.

Broadcom Stock Performance

Shares of NASDAQ AVGO opened at $357.89 on Friday. The firm has a fifty day moving average price of $383.57 and a 200-day moving average price of $377.23. The company has a debt-to-equity ratio of 0.57, a current ratio of 2.50 and a quick ratio of 2.01. The stock has a market cap of $1.70 trillion, a PE ratio of 45.71, a price-to-earnings-growth ratio of 0.68 and a beta of 1.44. Broadcom Inc. has a 1 year low of $289.96 and a 1 year high of $495.00.

Broadcom (NASDAQ:AVGO) last released its 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 net margin of 42.94% and a return on equity of 48.33%. The company had revenue of $29.59 billion for the quarter, compared to analysts’ expectations of $29.24 billion. During the same quarter in the previous year, the company earned $1.69 EPS. Broadcom’s revenue for the quarter was up 85.5% on a year-over-year basis. Equities analysts anticipate that Broadcom Inc. will post 10.25 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Monday, September 21st will be issued a $0.65 dividend. This represents a $2.60 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend is Monday, September 21st. Broadcom’s payout ratio is 33.21%.

Analyst Ratings Changes

A number of analysts have commented on the company. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a $515.00 target price (up from $430.00) on shares of Broadcom in a report on Thursday, June 4th. Susquehanna reaffirmed a “positive” rating and set a $490.00 price objective (up from $450.00) on shares of Broadcom in a research report on Thursday, May 28th. Erste Group Bank reiterated a “hold” rating on shares of Broadcom in a report on Tuesday, July 7th. Royal Bank Of Canada started coverage on Broadcom in a report on Thursday. They issued an “outperform” rating for the company. Finally, Citigroup reissued a “buy” rating and issued a $515.00 target price (up from $500.00) on shares of Broadcom in a research report on Friday. Thirty-one research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $500.60.

Insider Activity at Broadcom

In other Broadcom news, Director Justine Page sold 1,602 shares of Broadcom stock in a transaction on Monday, June 29th. The shares were sold at an average price of $373.86, for a total value of $598,923.72. Following the sale, the director directly owned 17,426 shares in the company, valued at approximately $6,514,884.36. The trade was a 8.42% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Mark Brazeal sold 25,000 shares of the business’s stock in a transaction 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 completion of the sale, the insider owned 194,989 shares in the company, valued at approximately $78,254,935.37. The trade was a 11.36% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 61,644 shares of company stock worth $24,016,214 over the last ninety days. 1.90% of the stock is owned by corporate insiders.

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.

About Broadcom

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.