Broadcom Inc. $AVGO Holdings Lessened by Modera Wealth Management LLC

Key Points

• Modera Wealth Management cut its Broadcom stake by 4.8% in the third quarter, selling 13,636 shares; it still held 273,415 shares valued at about $96 million.
• Other major institutions increased their holdings, and institutional investors collectively own 76.43% of Broadcom’s stock.
• Broadcom beat quarterly earnings and revenue estimates, while analysts’ consensus rating was “Moderate Buy” with an average price target of $530.52. The article also cites strong AI-chip demand, alongside concerns about valuation and supply bottlenecks.

Modera Wealth Management LLC decreased its holdings in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 4.8% in the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 273,415 shares of the semiconductor manufacturer's stock after selling 13,636 shares during the period. Broadcom accounts for approximately 1.0% of Modera Wealth Management LLC's holdings, making the stock its 24th biggest holding. Modera Wealth Management LLC's holdings in Broadcom were worth $96,021,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in AVGO. State Street Corp lifted its stake in shares of Broadcom by 8.7% in 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 purchasing an additional 16,651,378 shares during the last quarter. Bank of America Corp DE increased its position in shares of Broadcom by 4.6% during the 2nd quarter. Bank of America Corp DE now owns 61,423,013 shares of the semiconductor manufacturer's stock valued at $23,202,543,000 after purchasing an additional 2,685,916 shares during the last quarter. Wellington Management Group LLP increased its position in shares of Broadcom by 3.8% during the 2nd quarter. Wellington Management Group LLP now owns 51,580,703 shares of the semiconductor manufacturer's stock valued at $19,484,611,000 after purchasing an additional 1,892,721 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in Broadcom by 2.9% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 40,180,530 shares of the semiconductor manufacturer's stock valued at $15,178,195,000 after buying an additional 1,140,598 shares during the period. Finally, Legal & General Group Plc purchased a new stake in Broadcom during the 2nd quarter valued at $11,998,148,000. Hedge funds and other institutional investors own 76.43% of the company's stock.

Broadcom Stock Performance

Shares of Broadcom stock opened at $332.13 on Wednesday. The stock's fifty day moving average is $351.35 and its two-hundred day moving average is $366.76. The company has a market capitalization of $1.59 trillion, a PE ratio of 42.42 and a beta of 1.49. The company has a quick ratio of 2.29, a current ratio of 2.50 and a debt-to-equity ratio of 0.57. Broadcom Inc. has a 52 week low of $289.96 and a 52 week high of $495.00.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its earnings results 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 business had revenue of $29.59 billion during the quarter, compared to the consensus estimate of $29.24 billion. Broadcom had a return on equity of 48.33% and a net margin of 42.94%. The business's revenue for the quarter was up 85.5% compared to the same quarter last year. During the same period last year, the company earned $1.69 earnings per share. As a group, analysts expect that Broadcom Inc. will post 10.37 earnings per share for the current year.

Broadcom Dividend Announcement

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

Analyst Upgrades and Downgrades

Several research analysts have commented on the stock. Evercore set a $578.00 price objective on shares of Broadcom and gave the stock an "outperform" rating 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 research note on Thursday, September 3rd. JPMorgan Chase & Co. restated a "buy" rating on shares of Broadcom in a report on Thursday, September 3rd. William Blair cut shares of Broadcom from an "outperform" rating to a "market perform" rating in a research note on Tuesday, October 27th. Finally, President Capital upped their price target on shares of Broadcom from $520.00 to $546.00 and gave the company a "buy" rating in a report on Thursday, September 3rd. One equities research analyst has rated the stock with a Strong Buy rating, thirty-nine have given a Buy rating and five have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $530.52.

Key Headlines Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom gained alongside other chipmakers as investors continued to favor AI-related stocks. One report says the company’s AI-chip revenue is tripling year over year, reinforcing expectations for continued growth. NVIDIA, AMD and Broadcom stock performance Broadcom's AI growth outlook
• Positive Sentiment: Investor interest is also reflected in ETF activity: 48 funds bought Broadcom shares on Friday, while 30 sold, for reported net purchases of $183.8 million. ETF purchases of Broadcom shares
• Positive Sentiment: Several investment articles highlight Broadcom’s long-term AI opportunity, including its custom-chip and XPU businesses, and name it among favored technology stocks for the coming years. These are analyst and investor opinions, not new company guidance. Broadcom among top technology stocks AI growth stock picks
• Neutral Sentiment: One bullish investor argues that supply bottlenecks, rather than weak demand, are holding back Broadcom—suggesting demand remains strong but fulfillment constraints may delay revenue. Broadcom supply bottlenecks
• Negative Sentiment: Valuation is a counterpoint: some commentary considers the shares expensive despite the company’s growth prospects. Broadcom’s custom-chip opportunity also depends on customers continuing to develop their own processors, unlike TSMC, which serves multiple chip designers. Broadcom valuation concerns Taiwan Semiconductor versus Broadcom

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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