1,948 Broadcom Inc. $AVGO Shares Sold by AMG Asset Management Group Inc.

Key Points

• AMG Asset Management Group reduced its Broadcom stake by 19.8%, selling 1,948 shares and retaining 7,869 shares valued at approximately $2.76 million. Institutional investors collectively own 76.43% of Broadcom.
• Broadcom continues to benefit from strong AI-chip demand, ETF buying and analyst support, including a new Buy rating with a $600 price target. The company also launched Arcot Scam Defense to expand its software and security offerings.
• Key risks include Alphabet diversifying its TPU suppliers, increased competition and broader pressure on AI stocks. Broadcom shares opened at $321.68, while analysts maintained a “Moderate Buy” consensus with a $529.17 target price.

AMG Asset Management Group Inc. cut its stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 19.8% in the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 7,869 shares of the semiconductor manufacturer's stock after selling 1,948 shares during the period. Broadcom accounts for approximately 1.7% of AMG Asset Management Group Inc.'s portfolio, making the stock its 15th largest position. AMG Asset Management Group Inc.'s holdings in Broadcom were worth $2,763,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also bought and sold shares of the company. Cornerstone Advisors LLC bought a new position in shares of Broadcom in the 2nd quarter worth about $92,522,000. GAMMA Investing LLC boosted its stake in Broadcom by 8.8% during the third quarter. GAMMA Investing LLC now owns 164,015 shares of the semiconductor manufacturer's stock worth $55,889,000 after acquiring an additional 13,317 shares in the last quarter. ANB Bank bought a new stake in Broadcom during the third quarter worth about $1,181,000. Bank of America Corp DE grew its holdings in Broadcom by 1.5% in the first quarter. Bank of America Corp DE now owns 58,737,097 shares of the semiconductor manufacturer's stock worth $18,179,719,000 after purchasing an additional 894,564 shares during the period. Finally, Clear Harbor Asset Management LLC purchased a new stake in Broadcom in the second quarter worth about $3,302,000. 76.43% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: ETF investors bought approximately $89.8 million of Broadcom shares on October 21, signaling continued institutional demand. Broadcom Sees $89.8 Million in Net ETF Buying
• Positive Sentiment: Analysts continue to highlight Broadcom’s leadership in custom AI accelerators. Demand from major AI labs and hyperscalers, including Anthropic, OpenAI and Meta, supports management’s ambitious long-term AI semiconductor growth outlook. 3 Magnificent AI Chip Stocks
• Positive Sentiment: Tigress Financial initiated coverage with a Buy rating and a $600 price target, implying substantial upside from recent trading levels. Tigress Financial Broadcom Coverage
• Positive Sentiment: Broadcom launched Arcot Scam Defense, a real-time fraud-detection feature for digital payments. Strong initial pilot results could create incremental growth for its software and security businesses. Broadcom Debuts Arcot Scam Defense
• Neutral Sentiment: Broadcom remains the leading custom-chip design partner, but Alphabet is diversifying its TPU suppliers. Although Broadcom may lose market share, the overall AI accelerator market is expected to expand rapidly, potentially offsetting that loss. Broadcom AI Chip Business Risks
• Negative Sentiment: Investors are worried that customer-owned chip design and increased competition from MediaTek could reduce Broadcom’s role and margins in future AI programs. Alphabet’s supplier diversification is the clearest near-term risk. Broadcom AI Chip Business Risks
• Negative Sentiment: The broader market sell-off is weighing on AI stocks amid higher oil prices, inflation concerns and questions about whether massive data-center investments will generate sufficient returns. Technical commentary identifies the $320 area as an important support test. Broadcom Faces Critical $320 Test

Analyst Ratings Changes

Several equities analysts have recently issued reports on the stock. Bank of America lowered their target price on shares of Broadcom from $530.00 to $460.00 and set a "buy" rating for the company in a report on Thursday, September 3rd. Truist Financial lowered their price objective on Broadcom from $550.00 to $520.00 and set a "buy" rating for the company in a research note on Thursday, September 3rd. Raymond James Financial reissued an "outperform" rating and issued a $475.00 target price (up from $450.00) on shares of Broadcom in a report on Thursday, September 3rd. Rosenblatt Securities assumed coverage on Broadcom in a research note on Thursday, September 3rd. They issued a "buy" rating and a $600.00 target price on the stock. Finally, JPMorgan Chase & Co. restated a "buy" rating on shares of Broadcom in a report on Thursday, September 3rd. One analyst has rated the stock with a Strong Buy rating, thirty-eight have given a Buy rating and three 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 $529.17.

Broadcom Price Performance

Shares of AVGO opened at $321.68 on Friday. The company has a market capitalization of $1.54 trillion, a P/E ratio of 41.08 and a beta of 1.46. The company has a quick ratio of 2.29, a current ratio of 2.50 and a debt-to-equity ratio of 0.57. The firm has a 50 day moving average of $356.05 and a 200 day moving average of $384.25. Broadcom Inc. has a twelve month low of $289.96 and a twelve month high of $495.00.

Broadcom (NASDAQ:AVGO - Get Free Report) last released 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 business had revenue of $29.59 billion for the quarter, compared to analysts' expectations of $29.24 billion. Broadcom had a return on equity of 48.33% and a net margin of 42.94%. The firm's quarterly revenue was up 85.5% on a year-over-year basis. During the same period in the prior year, the firm posted $1.69 EPS. As a group, equities research analysts anticipate that Broadcom Inc. will post 10.37 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Monday, September 21st were paid a $0.65 dividend. The ex-dividend date was Monday, September 21st. This represents a $2.60 annualized dividend and a dividend yield of 0.8%. Broadcom's payout ratio is currently 33.21%.

Broadcom Profile

Broadcom Inc NASDAQ: AVGO is a global technology company that designs, develops and supplies semiconductor and infrastructure software products. Its semiconductor solutions support data center, networking, broadband, wireless communications, storage, industrial and other electronic applications.

The company's semiconductor portfolio includes networking and switching components, custom accelerators, connectivity and wireless devices, broadband equipment, optical products, storage controllers and related infrastructure technologies.

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