Broadcom Inc. $AVGO Shares Newly Acquired by WPG Advisers LLC

Key Points

• WPG Advisers LLC acquired 2,497 Broadcom shares during the third quarter, valued at approximately $877,000. Institutional investors collectively own 76.43% of Broadcom’s outstanding stock.
• Broadcom’s AI growth outlook remains a major focus, with potential demand from Anthropic and Meta supporting its custom-chip and networking businesses. However, investors remain concerned about execution, financing obligations, infrastructure costs and the company’s demanding valuation.
• Analysts maintain a broadly positive view, with Broadcom carrying a “Moderate Buy” consensus rating and an average price target of $530.52. The company recently reported revenue growth of 85.5% year over year and quarterly earnings that exceeded expectations.

WPG Advisers LLC bought a new stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) during the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission. The fund bought 2,497 shares of the semiconductor manufacturer's stock, valued at approximately $877,000.

Several other hedge funds have also made changes to their positions in AVGO. Core Capital Management & Research inc. purchased a new position in Broadcom in the second quarter worth approximately $31,000. Harborfront Financial Group LLC acquired a new stake in Broadcom during the second quarter worth $38,000. Align Financial LLC raised its position in Broadcom by 67.2% in 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 during the period. Curry Webb Wealth Management LLC acquired a new position in shares of Broadcom in the 3rd quarter valued at $41,000. Finally, Laurel Wealth Advisors LLC acquired a new position in shares of Broadcom in the 3rd quarter valued at $52,000. Hedge funds and other institutional investors own 76.43% of the company's stock.

Key Stories Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: DA Davidson upgraded Broadcom to Buy from Neutral and raised its price target to $400 from $350. The firm cited Broadcom’s exposure to major AI customers, including Anthropic and potentially OpenAI. Broadcom Falls Despite DA Davidson Upgrade
• Positive Sentiment: A $63 billion financing arrangement is expected to fund purchases of Broadcom AI hardware for Anthropic. The deal provides a potentially large, funded customer for Broadcom’s custom-chip and networking business, although the company could face substantial obligations under the agreement’s backstop. Broadcom’s $63 Billion Anthropic Deal
• Positive Sentiment: Longer-term investment theses remain favorable: Broadcom projects AI semiconductor revenue of approximately $115 billion in fiscal 2027 and $230 billion in fiscal 2028. Meta’s planned financing for its AI expansion could also support additional demand for Broadcom’s custom silicon and networking products. Meta Financing Plan and Broadcom
• Neutral Sentiment: Broadcom is trading well below its record high and below its 50-day and 200-day moving averages. Analysts see upside, but valuation remains demanding, making execution of the AI growth forecast particularly important.
• Negative Sentiment: Intel’s weaker-than-expected forecast prompted investors to reassess semiconductor demand. Concerns were reinforced by Amazon’s results and the rising cost of building AI infrastructure, pressuring AI-exposed chip stocks broadly. Why Intel, AMD and Broadcom Are Falling
• Negative Sentiment: The Anthropic transaction also carries execution and financial-risk questions. Investors are waiting to see whether Broadcom can manufacture and deliver the required hardware at scale before fully crediting the projected revenue. Broadcom’s Anthropic Deal and Execution Risk

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on AVGO. Citigroup cut Broadcom from a "buy" rating to a "neutral" rating in a report on Tuesday, October 27th. Weiss Ratings raised shares of Broadcom from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, October 8th. Rosenblatt Securities reiterated a "buy" rating and set a $600.00 price target on shares of Broadcom in a research report on Tuesday, October 27th. Wedbush started coverage on shares of Broadcom in a research note on Tuesday, October 27th. They issued an "outperform" rating on the stock. Finally, BNP Paribas Exane upped their price objective on shares of Broadcom from $675.00 to $715.00 and gave the stock an "outperform" rating in a report on Friday, September 4th. 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, the company presently has an average rating of "Moderate Buy" and an average target price of $530.52.

Broadcom Price Performance

Shares of NASDAQ AVGO opened at $326.08 on Monday. The stock has a market cap of $1.56 trillion, a P/E ratio of 41.65 and a beta of 1.49. The company has a current ratio of 2.50, a quick ratio of 2.29 and a debt-to-equity ratio of 0.57. Broadcom Inc. has a 12-month low of $289.96 and a 12-month high of $495.00. The business's fifty day simple moving average is $352.81 and its 200-day simple moving average is $366.96.

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 return on equity of 48.33% and a net margin of 42.94%. The firm had revenue of $29.59 billion during the quarter, compared to analyst estimates of $29.24 billion. During the same period last year, the business posted $1.69 earnings per share. Broadcom's revenue was up 85.5% compared to the same quarter last year. As a group, equities analysts predict that Broadcom Inc. will post 10.37 EPS for the current fiscal year.

Broadcom Announces Dividend

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

Broadcom Company 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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