4,293 Broadcom Inc. $AVGO Shares Sold by Sepio Capital LP

Key Points

• Sepio Capital sharply reduced its Broadcom stake by 84.2% in the third quarter, selling 4,293 shares and retaining 805 shares valued at approximately $283,000.
• Broadcom reported quarterly earnings of $3.32 per share and $29.59 billion in revenue, exceeding analyst expectations; revenue rose 85.5% year over year.
• Broadcom benefits from strong AI-infrastructure demand and maintains a “Moderate Buy” consensus rating, though risks include Alphabet diversifying custom-chip suppliers and tighter debt-market financing for AI data centers.

Sepio Capital LP lessened its stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 84.2% during the 3rd quarter, according to the company in its most recent 13F filing with the SEC. The firm owned 805 shares of the semiconductor manufacturer's stock after selling 4,293 shares during the quarter. Sepio Capital LP's holdings in Broadcom were worth $283,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Cornerstone Advisors LLC acquired a new stake in shares of Broadcom in the 2nd quarter valued at approximately $92,522,000. GAMMA Investing LLC grew its holdings in Broadcom by 8.8% during the third quarter. GAMMA Investing LLC now owns 164,015 shares of the semiconductor manufacturer's stock valued at $55,889,000 after purchasing an additional 13,317 shares during the period. ANB Bank acquired a new position in Broadcom during the third quarter valued at approximately $1,181,000. Bank of America Corp DE grew its holdings in Broadcom by 1.5% during the first quarter. Bank of America Corp DE now owns 58,737,097 shares of the semiconductor manufacturer's stock valued at $18,179,719,000 after purchasing an additional 894,564 shares during the period. Finally, Clear Harbor Asset Management LLC bought a new stake in Broadcom in the second quarter valued at approximately $3,302,000. Hedge funds and other institutional investors own 76.43% of the company's stock.

Broadcom Stock Performance

AVGO opened at $329.17 on Tuesday. The business's 50-day moving average price is $356.76 and its two-hundred day moving average price is $367.07. Broadcom Inc. has a 1 year low of $289.96 and a 1 year high of $495.00. The company has a market capitalization of $1.57 trillion, a price-to-earnings ratio of 42.04 and a beta of 1.46. 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 posted its quarterly earnings data on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share for the quarter, topping the consensus estimate of $3.22 by $0.10. The company had revenue of $29.59 billion during 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%. Broadcom's revenue for the quarter was up 85.5% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.69 earnings per share. Equities analysts expect that Broadcom Inc. will post 10.37 EPS for the current fiscal year.

Broadcom Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders 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 yield of 0.8%. Broadcom's payout ratio is presently 33.21%.

Trending Headlines about Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: A coalition of banks and Blackstone is reportedly arranging a $63 billion financing vehicle to purchase AI-computing infrastructure from Broadcom and lease it to Anthropic. The proposed transaction would provide a potentially significant source of demand and revenue visibility. Banks, Blackstone Form $63 Billion Financing Vehicle for Broadcom AI Tech
• Positive Sentiment: Anthropic’s IPO filing disclosed approximately $224.5 billion of non-cancelable compute commitments with Amazon and Alphabet. The scale of those commitments supports continued spending on custom AI accelerators and networking equipment supplied or co-designed by Broadcom. Anthropic's IPO Filing Reveals a Massive Opportunity for AI Infrastructure Giants
• Positive Sentiment: Reports highlight unusually heavy call-option activity and argue that Broadcom’s custom AI chips are gaining popularity among major AI companies. Bullish commentary also points to strong projected growth in custom silicon and networking through 2030. Huge, unusual call option activity in Broadcom shows investors bullish on AVGO stock
• Neutral Sentiment: Broadcom’s stock is being described as potentially attractive after reaching a six-month low, although investors remain focused on whether future AI growth is already reflected in its premium valuation. Broadcom Is At a 6-Month Low - Is AVGO Stock Too Cheap?
• Negative Sentiment: Alphabet is reportedly diversifying its TPU suppliers to include MediaTek, raising concerns that Broadcom could lose some custom-chip business. Growing demand from Anthropic and OpenAI may offset that risk, but supplier diversification remains an important competitive threat. Broadcom's AI Chip Business Is Booming, But Alphabet's Strategy Highlights 2 Key Risks
• Negative Sentiment: Concerns that debt-market funding for AI data centers is tightening could slow infrastructure construction and customer spending. Separately, Erste Group Bank cut its earnings estimates for Broadcom, adding near-term pressure to expectations.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on AVGO. Piper Sandler assumed coverage on shares of Broadcom in a report on Wednesday, September 9th. They issued an "overweight" rating and a $460.00 target price on the stock. Arete Research boosted their price target on shares of Broadcom from $488.00 to $530.00 and gave the company a "buy" rating in a report on Tuesday, July 21st. KeyCorp reissued an "overweight" rating and issued a $575.00 price target on shares of Broadcom in a report on Thursday, September 3rd. DA Davidson set a $350.00 price objective on shares of Broadcom and gave the company a "neutral" rating in a research report on Friday, September 4th. Finally, UBS Group downgraded Broadcom from a "buy" rating to a "hold" rating in a research note on Thursday, September 3rd. One analyst has rated the stock with a Strong Buy rating, thirty-eight have issued a Buy rating and three have given a Hold rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $529.17.

About Broadcom

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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