Broadcom Inc. $AVGO Shares Sold by Central Pacific Bank Trust Division

Key Points

• Central Pacific Bank Trust Division cut its Broadcom stake by 21.7% in the third quarter, selling 5,241 shares and retaining 18,933 shares valued at approximately $6.65 million.
• Institutional investors own 76.43% of Broadcom, with major firms including State Street increasing holdings while several other institutions established new positions.
• Broadcom reported strong quarterly results, including 85.5% year-over-year revenue growth and EPS that exceeded estimates. Analysts maintain a “Moderate Buy” consensus, although the stock’s premium valuation and reported Anthropic financing arrangement introduce additional risk.

Central Pacific Bank Trust Division decreased its stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 21.7% during the 3rd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 18,933 shares of the semiconductor manufacturer's stock after selling 5,241 shares during the period. Broadcom accounts for approximately 0.7% of Central Pacific Bank Trust Division's holdings, making the stock its 22nd biggest holding. Central Pacific Bank Trust Division's holdings in Broadcom were worth $6,649,000 as of its most recent SEC filing.

Other hedge funds have also recently added to or reduced their stakes in the company. Legal & General Group Plc bought a new position in Broadcom in the 2nd quarter valued at $11,998,148,000. Bank of New York Mellon Corp bought a new stake in Broadcom during the 2nd quarter worth about $10,528,191,000. Jupiter Topco LLC acquired a new position in Broadcom during the 2nd quarter valued at about $7,396,271,000. State Street Corp grew its position in shares of Broadcom by 8.7% during the 2nd quarter. State Street Corp now owns 208,031,610 shares of the semiconductor manufacturer's stock worth $75,367,711,000 after buying an additional 16,651,378 shares during the period. Finally, Deutsche Bank AG bought a new stake in shares of Broadcom during the second quarter worth approximately $5,661,216,000. Institutional investors own 76.43% of the company's stock.

Broadcom News Roundup

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Reports that Broadcom is offering attractive financing terms to customers are fueling expectations that the company can win additional AI-chip sales and expand its customer base. Massive News for Broadcom Stock Investors
• Positive Sentiment: Broadcom reportedly agreed to provide up to $42 billion in financing connected to Anthropic’s future chip purchases. Investors view the arrangement as potentially supporting a major, long-term AI customer and increasing hardware demand. Broadcom Stock Jumps Following Reported $42 Billion Financing Deal With Anthropic
• Positive Sentiment: Morgan Stanley said Broadcom and Nvidia may be relatively protected from a projected U.S. data-center power shortfall, because their business models are less directly exposed to delays in new data-center construction. Nvidia, Broadcom May Be Surprisingly Safe From a 32-GW Hole in the AI Boom
• Positive Sentiment: Analysts and financial commentators continue to point to sharply rising AI revenue. Fiscal third-quarter AI semiconductor sales reportedly reached $16.7 billion, with management projecting $21.7 billion in the following quarter, reinforcing expectations for another leg of growth. Broadcom Trades Above Its Own Average Multiple While Growth Cools
• Neutral Sentiment: Upcoming Taiwan Semiconductor results on October 15 are viewed as an important read-through for AI-chip demand and could influence Broadcom’s relative performance through late November. Why October 15 Is the Most Important Day for NVIDIA and Broadcom
• Negative Sentiment: The Anthropic arrangement also raises “circular financing” concerns because Broadcom would help finance a customer’s purchases of Broadcom products. That structure could increase credit, concentration and execution risks, particularly while AVGO trades at a premium valuation. Broadcom’s Massive $42 Billion Chip-Buying Deal with Anthropic Raises Circular Financing Worries

Insider Transactions at Broadcom

In other Broadcom news, insider Mark Brazeal sold 25,000 shares of the company's stock in a transaction that occurred on Friday, July 10th. The stock was sold at an average price of $401.33, for a total transaction of $10,033,250.00. Following the completion of the transaction, the insider owned 194,989 shares of the company's stock, valued at $78,254,935.37. This represents a 11.36% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Gayla J. Delly sold 1,890 shares of the business's stock in a transaction on Wednesday, July 8th. The stock was sold at an average price of $385.38, for a total transaction of $728,368.20. Following the completion of the sale, the director directly owned 31,326 shares in the company, valued at approximately $12,072,413.88. This represents a 5.69% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 51,890 shares of company stock valued at $20,241,368. 1.90% of the stock is owned by corporate insiders.

Broadcom Trading Up 2.1%

NASDAQ:AVGO opened at $362.51 on Tuesday. The company has a debt-to-equity ratio of 0.57, a current ratio of 2.50 and a quick ratio of 2.29. The business's 50-day simple moving average is $372.33 and its 200-day simple moving average is $381.36. Broadcom Inc. has a fifty-two week low of $289.96 and a fifty-two week high of $495.00. The stock has a market capitalization of $1.73 trillion, a PE ratio of 46.30 and a beta of 1.46.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 EPS for the quarter, topping the consensus estimate 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 the consensus estimate of $29.24 billion. During the same period last year, the company posted $1.69 EPS. The business's quarterly revenue was up 85.5% on a year-over-year basis. Sell-side analysts expect that Broadcom Inc. will post 10.37 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Monday, September 21st were given a dividend of $0.65 per share. This represents a $2.60 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend was Monday, September 21st. Broadcom's dividend payout ratio is currently 33.21%.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on AVGO. Jefferies Financial Group assumed coverage on shares of Broadcom in a research note on Thursday, September 3rd. They issued a "buy" rating and a $550.00 price objective on the stock. HSBC decreased their price objective on Broadcom from $600.00 to $560.00 and set a "buy" rating for the company 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. The Goldman Sachs Group upped their price target on Broadcom from $525.00 to $540.00 and gave the company a "buy" rating in a research note on Thursday, September 3rd. Finally, Lake Street Capital upgraded shares of Broadcom to a "buy" rating in a research report on Thursday, September 3rd. One research analyst has rated the stock with a Strong Buy rating, thirty-seven have issued a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, Broadcom has an average rating of "Moderate Buy" and an average price target of $527.20.

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 wired and wireless communications, data center networking, broadband access, storage, industrial applications, and other markets.

The company's semiconductor portfolio includes networking and switching products, custom application-specific integrated circuits, wireless connectivity components, radio-frequency devices, optical components, and storage-related solutions.

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