Osterweis Capital Management Inc. Buys Shares of 135,358 Broadcom Inc. $AVGO

Osterweis Capital Management Inc. bought a new stake in Broadcom Inc. (NASDAQ:AVGO) during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor bought 135,358 shares of the semiconductor manufacturer’s stock, valued at approximately $51,131,000. Broadcom accounts for approximately 2.4% of Osterweis Capital Management Inc.’s investment portfolio, making the stock its 10th largest position.

Other hedge funds have also made changes to their positions in the company. Norges Bank acquired a new position in Broadcom in the 4th quarter valued at approximately $24,252,196,000. Legal & General Group Plc acquired a new stake in shares of Broadcom during the 2nd quarter valued at $11,998,148,000. Bank of New York Mellon Corp acquired a new stake in shares of Broadcom during the 2nd quarter valued at $10,528,191,000. Deutsche Bank AG purchased a new position in shares of Broadcom during the 2nd quarter valued at $5,661,216,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in shares of Broadcom during the 2nd quarter valued at $4,457,583,000. 76.43% of the stock is owned by hedge funds and other institutional investors.

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.

Broadcom Trading Up 0.2%

Shares of NASDAQ:AVGO opened at $357.89 on Friday. The company has a current ratio of 2.50, a quick ratio of 2.01 and a debt-to-equity ratio of 0.57. The stock has a market capitalization of $1.70 trillion, a PE ratio of 45.71, a P/E/G 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. The firm has a fifty day moving average price of $383.57 and a 200 day moving average price of $377.23.

Broadcom (NASDAQ:AVGO) last posted its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share for the quarter, beating the consensus estimate of $3.22 by $0.10. Broadcom had a return on equity of 48.33% and a net margin of 42.94%.The company had revenue of $29.59 billion for the quarter, compared to analyst estimates of $29.24 billion. During the same period last year, the company earned $1.69 earnings per share. The business’s revenue was up 85.5% compared to the same quarter last year. Analysts expect that Broadcom Inc. will post 10.25 EPS for the current fiscal year.

Broadcom Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Monday, September 21st will be paid a dividend of $0.65 per share. The ex-dividend date is Monday, September 21st. This represents a $2.60 dividend on an annualized basis and a yield of 0.7%. Broadcom’s payout ratio is currently 43.33%.

Analysts Set New Price Targets

AVGO has been the subject of several recent research reports. Fox Advisors upgraded Broadcom to an “outperform” rating in a report on Thursday. The Goldman Sachs Group restated a “buy” rating on shares of Broadcom in a research note on Monday, August 3rd. Evercore set a $578.00 price target on Broadcom in a research note on Thursday. Citigroup reiterated a “buy” rating and set a $515.00 price target (up from $500.00) on shares of Broadcom in a report on Friday. Finally, Erste Group Bank reissued a “hold” rating on shares of Broadcom in a research note on Tuesday, July 7th. Thirty-one research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat.com, Broadcom has an average rating of “Moderate Buy” and a consensus price target of $500.60.

Insider Buying and Selling at Broadcom

In other news, Director Gayla Delly sold 1,890 shares of Broadcom stock in a transaction dated Wednesday, July 8th. The shares were sold at an average price of $385.38, for a total transaction of $728,368.20. Following the sale, the director directly owned 31,326 shares in the company, valued at approximately $12,072,413.88. The trade was a 5.69% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Harry L. You purchased 1,000 shares of the company’s stock in a transaction that occurred on Thursday, June 11th. The stock was acquired at an average cost of $373.57 per share, with a total value of $373,570.00. Following the transaction, the director directly owned 38,466 shares of the company’s stock, valued at approximately $14,369,743.62. This represents a 2.67% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last quarter, insiders sold 61,644 shares of company stock worth $24,016,214. Corporate insiders own 1.90% of the company’s stock.

Broadcom 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.