Broadcom Inc. $AVGO Shares Acquired by Ethic Inc.

Key Points

• Ethic Inc. increased its Broadcom stake by 24% in the third quarter, adding 97,073 shares to reach 500,945 shares worth about $175.9 million. Broadcom is now 2% of Ethic’s portfolio and its eighth-largest holding.
• Analysts have a consensus “Moderate Buy” rating and an average price target of $530.52; 40 rate the stock Buy or Strong Buy, while five recommend Hold.
• Broadcom beat quarterly earnings and revenue estimates, with revenue up 85.5% year over year. Shares opened at $331.98, and the company’s quarterly dividend equates to $2.60 annually, a 0.8% yield.

Ethic Inc. grew its holdings in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 24.0% during the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 500,945 shares of the semiconductor manufacturer's stock after buying an additional 97,073 shares during the period. Broadcom accounts for approximately 2.0% of Ethic Inc.'s holdings, making the stock its 8th biggest position. Ethic Inc.'s holdings in Broadcom were worth $175,927,000 at the end of the most recent quarter.

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

Analyst Ratings Changes

Several equities analysts have recently issued reports on AVGO shares. KeyCorp reiterated an "overweight" rating and set a $575.00 target price on shares of Broadcom in a report on Thursday, September 3rd. Citic Securities upgraded Broadcom to a "buy" rating and upped their price target for the stock from $450.00 to $525.00 in a research note on Tuesday, September 8th. Morgan Stanley reaffirmed an "overweight" rating and set a $505.00 price objective (up from $502.00) on shares of Broadcom in a research report on Thursday, September 3rd. TD Cowen reiterated a "buy" rating and set a $475.00 price objective (down from $500.00) on shares of Broadcom in a research note on Thursday, September 3rd. Finally, HC Wainwright initiated coverage on Broadcom in a research note on Tuesday, October 27th. They set a "buy" rating for the company. One 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. According to data from MarketBeat, Broadcom currently has a consensus rating of "Moderate Buy" and a consensus target price of $530.52.

Broadcom Stock Performance

Shares of AVGO stock opened at $331.98 on Wednesday. The company has a market capitalization of $1.58 trillion, a price-to-earnings ratio of 42.40 and a beta of 1.49. The company has a debt-to-equity ratio of 0.57, a quick ratio of 2.29 and a current ratio of 2.50. Broadcom Inc. has a one year low of $289.77 and a one year high of $495.00. The company's 50-day moving average is $346.14 and its 200 day moving average is $366.16.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share (EPS) 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 analysts' expectations of $29.24 billion. Broadcom had a net margin of 42.94% and a return on equity of 48.33%. The business's revenue for the quarter was up 85.5% compared to the same quarter last year. During the same period in the previous year, the company earned $1.69 earnings per share. Sell-side analysts expect that Broadcom Inc. will post 10.37 EPS for the current fiscal year.

Broadcom Dividend Announcement

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

Key Headlines 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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