1,081,975 Shares of Broadcom Inc. $AVGO Bought by Rakuten Investment Management Inc.

Key Points

• Rakuten Investment Management bought 1,081,975 Broadcom shares in the third quarter, worth about $384.2 million. The position represents roughly 0.9% of its portfolio and is its 11th-largest holding.
• Institutional investors own 76.43% of Broadcom shares. Analysts have a consensus “Moderate Buy” rating and an average price target of $530.52.
• Broadcom beat quarterly earnings and revenue estimates, reporting EPS of $3.32 and revenue of $29.59 billion; revenue rose 85.5% year over year.

Rakuten Investment Management Inc. purchased a new position in Broadcom Inc. (NASDAQ:AVGO - Free Report) in the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor purchased 1,081,975 shares of the semiconductor manufacturer's stock, valued at approximately $384,209,000. Broadcom accounts for about 0.9% of Rakuten Investment Management Inc.'s investment portfolio, making the stock its 11th biggest holding.

A number of other hedge funds also recently bought and sold shares of the business. Legal & General Group Plc purchased a new stake in shares of Broadcom in the second quarter valued at approximately $11,998,148,000. Bank of New York Mellon Corp acquired a new position in shares of Broadcom during the 2nd quarter worth approximately $10,528,191,000. Jupiter Topco LLC acquired a new position in shares of Broadcom during the 2nd quarter worth approximately $7,396,271,000. State Street Corp lifted its position in shares of Broadcom by 8.7% during the 2nd quarter. State Street Corp now owns 208,031,610 shares of the semiconductor manufacturer's stock valued at $75,367,711,000 after buying an additional 16,651,378 shares in the last quarter. Finally, Deutsche Bank AG purchased a new position in shares of Broadcom during the 2nd quarter valued at approximately $5,661,216,000. Hedge funds and other institutional investors own 76.43% of the company's stock.

Analyst Ratings Changes

A number of equities research analysts recently issued reports on the stock. Wall Street Zen cut shares of Broadcom from a "strong-buy" rating to a "buy" rating in a research note on Saturday, July 18th. Jefferies Financial Group initiated coverage on shares of Broadcom in a research report on Thursday, September 3rd. They set a "buy" rating and a $550.00 price objective for the company. UBS Group downgraded shares of Broadcom from a "hold" rating to a "neutral" rating in a report on Tuesday, October 27th. Evercore set a $578.00 price objective on shares of Broadcom and gave the company an "outperform" rating in a report on Thursday, September 3rd. Finally, Royal Bank Of Canada initiated coverage on shares of Broadcom in a research report on Thursday, September 3rd. They issued an "outperform" rating on the stock. One research analyst has rated the stock with a Strong Buy rating, thirty-nine have issued a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $530.52.

Broadcom News Roundup

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s AI semiconductor revenue is surging, and management sees significant growth potential over the next several years. One analysis argues that the market may not yet reflect that opportunity; another estimates the shares could be undervalued. Prediction: November Will Be a Huge Month for Broadcom Broadcom Stock Could Be 37% Undervalued
• Neutral Sentiment: Some coverage frames the recent pullback as a potential turning point, with a widening gap between AI business growth and the share-price trend. Whether fundamentals prompt a recovery remains uncertain. Broadcom Stock Could Be Approaching a Major Turning Point
• Negative Sentiment: Near-term risks include the broad AI-chip selloff and worries that higher interest rates could curb AI spending. Potential limits on new data-center permits in some states add uncertainty about future infrastructure buildouts. Broadcom’s AI Revenue Is Exploding. Here’s What Investors Should Watch Next. Broadcom Drops Amid Broad Chip Selloff
• Negative Sentiment: Investor positioning has also weighed on sentiment: ARK sold a large Broadcom holding during the selloff while buying Nvidia. Broadcom is still down sharply over the past month, despite the recent lift. ARK Buys Nvidia and Sells Broadcom Broadcom Is Still Down 22% in the Past Month

Broadcom Stock Performance

NASDAQ AVGO opened at $293.69 on Friday. The company has a market cap of $1.40 trillion, a PE ratio of 37.51 and a beta of 1.49. The stock's 50 day simple moving average is $347.89 and its 200-day simple moving average is $366.17. Broadcom Inc. has a 1-year low of $289.77 and a 1-year high of $495.00. 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 results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share (EPS) for the quarter, topping 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 firm had revenue of $29.59 billion for the quarter, compared to analyst estimates of $29.24 billion. During the same period in the previous year, the company posted $1.69 earnings per share. The business's revenue was up 85.5% on a year-over-year basis. As a group, equities research analysts anticipate that Broadcom Inc. will post 10.37 EPS for the current fiscal year.

Broadcom Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Monday, September 21st were issued a $0.65 dividend. The ex-dividend date was Monday, September 21st. This represents a $2.60 dividend on an annualized basis and a yield of 0.9%. Broadcom's dividend payout ratio (DPR) is presently 33.21%.

Broadcom Company Profile

Broadcom Inc is a global technology company that designs and supplies semiconductor products and infrastructure software. Its semiconductor portfolio includes chips and components used in networking, broadband communications, wireless connectivity, data storage, and industrial applications. The company serves businesses across a range of industries, including communications, enterprise technology, and consumer electronics.

Broadcom also provides infrastructure software, including products for virtualization, cloud computing, cybersecurity, and enterprise operations.

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