Broadcom Inc. $AVGO Position Reduced by Edgemoor Investment Advisors Inc.

Key Points

• Edgemoor Investment Advisors cut its Broadcom stake by 1.2%, selling 1,955 shares; it held 164,146 shares valued at about $57.6 million at quarter-end.
• Institutional investors own 76.43% of Broadcom shares. Analyst sentiment is broadly positive, with a consensus “Moderate Buy” rating and an average price target of $530.52.
• Broadcom beat quarterly estimates, reporting EPS of $3.32 versus $3.22 expected and revenue of $29.59 billion versus $29.24 billion expected; revenue rose 85.5% year over year.

Edgemoor Investment Advisors Inc. lessened its holdings in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 1.2% during the third quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 164,146 shares of the semiconductor manufacturer's stock after selling 1,955 shares during the quarter. Broadcom accounts for 3.9% of Edgemoor Investment Advisors Inc.'s investment portfolio, making the stock its 7th biggest position. Edgemoor Investment Advisors Inc.'s holdings in Broadcom were worth $57,647,000 as of its most recent SEC filing.

Other hedge funds have also added to or reduced their stakes in the company. Legal & General Group Plc purchased a new stake in Broadcom during the second quarter valued at about $11,998,148,000. Bank of New York Mellon Corp bought a new position in shares of Broadcom during the second quarter valued at about $10,528,191,000. Jupiter Topco LLC bought a new position in shares of Broadcom during the second quarter valued at about $7,396,271,000. State Street Corp grew its stake in shares of Broadcom by 8.7% during the second 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 during the last quarter. Finally, Deutsche Bank AG purchased a new position in shares of Broadcom in the second quarter worth about $5,661,216,000. 76.43% of the stock is owned by institutional investors.

Analysts Set New Price Targets

A number of research firms have recently weighed in on AVGO. KeyCorp reissued an "overweight" rating and issued a $575.00 target price on shares of Broadcom in a research note on Thursday, September 3rd. Arete Research increased their target price on Broadcom from $488.00 to $530.00 and gave the company a "buy" rating in a report on Tuesday, July 21st. Evercore set a $578.00 price target on Broadcom and gave the stock an "outperform" rating in a research report on Thursday, September 3rd. Wedbush started coverage on Broadcom in a research report on Tuesday, October 27th. They set an "outperform" rating on the stock. Finally, Oppenheimer initiated coverage on Broadcom in a research note on Tuesday, October 27th. They issued a "buy" rating on the stock. One research analyst has rated the stock with a Strong Buy rating, thirty-nine have given a Buy rating and five have given a Hold rating to the company. According to MarketBeat, Broadcom has a consensus rating of "Moderate Buy" and a consensus target price of $530.52.

Broadcom Trading Up 3.9%

Shares of AVGO opened at $331.98 on Wednesday. The stock has a market capitalization of $1.58 trillion, a P/E ratio of 42.40 and a beta of 1.49. Broadcom Inc. has a twelve month low of $289.77 and a twelve month high of $495.00. 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 fifty day simple moving average of $346.14 and a two-hundred day simple moving average of $366.16.

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 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 firm had revenue of $29.59 billion for the quarter, compared to analysts' expectations of $29.24 billion. During the same quarter in the previous year, the company earned $1.69 earnings per share. The company's revenue for the quarter was up 85.5% compared to the same quarter last year. On average, research analysts anticipate that Broadcom Inc. will post 10.37 EPS for the current year.

Broadcom Dividend Announcement

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

Key Stories Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Anthropic’s S-1 filing reportedly shows surging revenue and $131.8 billion in cash, strengthening confidence in its ability to support a large commitment to Broadcom. Broadcom’s connection to a $26 billion Anthropic placement also underscores its role in the AI supply chain. Anthropic's S-1 Strengthens the Case for Broadcom's AI Growth
• Positive Sentiment: Google’s projected $135 billion chip spending could benefit Broadcom’s custom-chip business, as large technology companies look beyond GPUs to develop their own AI processors. The Real Winner of Google’s $135 Billion Chip Forecast: Broadcom
• Positive Sentiment: Analysts point to Broadcom’s history of earnings surprises and factors they believe could support another quarterly beat. The next results are scheduled for December 9, making the report a near-term test of AI demand and investor expectations. Will Broadcom Beat Estimates Again?
• Neutral Sentiment: Broadcom contributed its VM API project to the Cloud Native Computing Foundation’s Sandbox and is working on Kubernetes workload standards. This may strengthen VMware’s ecosystem and partner support, though the near-term financial impact is uncertain. Broadcom Contributes VM API Open Source Project to CNCF
• Negative Sentiment: Despite the rebound, investor concerns persist over margin pressure and a reported $63 billion financing structure. Broader worries about data-center investment, AI regulation and higher interest rates could also weigh on sentiment toward semiconductor stocks. Broadcom’s Margin and Financing Concerns

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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