314,516 Broadcom Inc. $AVGO Shares Sold by Factory Mutual Insurance Co.

Key Points

• Factory Mutual Insurance Co. reduced its Broadcom stake by 30.5% in the third quarter, selling 314,516 shares; it retained 718,320 shares valued at about $252.3 million.
• Analyst views remain broadly positive: 39 analysts rate AVGO a Buy and one a Strong Buy, contributing to a “Moderate Buy” consensus and an average price target of $530.52.
• Broadcom reported quarterly revenue of $29.59 billion, up 85.5% year over year, and EPS of $3.32, beating consensus estimates for both measures.

Factory Mutual Insurance Co. cut its position in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 30.5% during the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 718,320 shares of the semiconductor manufacturer's stock after selling 314,516 shares during the quarter. Broadcom makes up about 2.2% of Factory Mutual Insurance Co.'s holdings, making the stock its 11th biggest position. Factory Mutual Insurance Co.'s holdings in Broadcom were worth $252,267,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently modified their holdings of AVGO. Core Capital Management & Research inc. bought a new stake in Broadcom in the second quarter worth approximately $31,000. DecisionPoint Financial LLC lifted its holdings in Broadcom by 101.9% in the third quarter. DecisionPoint Financial LLC now owns 105 shares of the semiconductor manufacturer's stock valued at $36,000 after acquiring an additional 53 shares during the period. Harborfront Financial Group LLC bought a new stake in Broadcom in the second quarter worth $38,000. Align Financial LLC increased its stake in shares of Broadcom by 67.2% during the third quarter. Align Financial LLC now owns 112 shares of the semiconductor manufacturer's stock valued at $38,000 after buying an additional 45 shares during the period. Finally, Curry Webb Wealth Management LLC purchased a new position in shares of Broadcom in the third quarter worth about $41,000. Institutional investors own 76.43% of the company's stock.

Analysts Set New Price Targets

Several brokerages have recently weighed in on AVGO. Jefferies Financial Group began coverage on shares of Broadcom in a research note on Thursday, September 3rd. They set a "buy" rating and a $550.00 target price for the company. Sanford C. Bernstein restated a "buy" rating on shares of Broadcom in a research report on Monday, September 21st. William Blair cut Broadcom from an "outperform" rating to a "market perform" rating in a report on Tuesday, October 27th. BNP Paribas Exane upped their target price on shares of Broadcom from $675.00 to $715.00 and gave the stock an "outperform" rating in a report on Friday, September 4th. Finally, Wall Street Zen lowered Broadcom from a "strong-buy" rating to a "buy" rating in a research note on Saturday, July 18th. One analyst has rated the stock with a Strong Buy rating, thirty-nine have assigned a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $530.52.

More Broadcom News

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 Price Performance

Shares of NASDAQ:AVGO opened at $293.69 on Friday. 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 simple moving average of $347.89 and a 200 day simple moving average of $366.17. Broadcom Inc. has a fifty-two week low of $289.77 and a fifty-two week high of $495.00. The company has a market cap of $1.40 trillion, a PE ratio of 37.51 and a beta of 1.49.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share (EPS) 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 the consensus estimate of $29.24 billion. During the same period in the prior year, the company posted $1.69 EPS. The company's revenue was up 85.5% compared to the same quarter last year. On average, sell-side analysts anticipate that Broadcom Inc. will post 10.37 EPS for the current year.

Broadcom Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Monday, September 21st were given a dividend of $0.65 per share. This represents a $2.60 annualized dividend and a dividend yield of 0.9%. The ex-dividend date of this dividend was Monday, September 21st. Broadcom's dividend payout ratio is presently 33.21%.

Broadcom 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.

Want to see what other hedge funds are holding AVGO? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Broadcom Inc. (NASDAQ:AVGO - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.