Broadcom Inc. $AVGO Shares Sold by Eagle Rock Investment Company LLC

Key Points

• Eagle Rock Investment Company LLC reduced its Broadcom position by 1.8% in the third quarter, selling 1,905 shares. It still held 105,317 shares worth approximately $37.0 million, representing 4.4% of its portfolio.
• Broadcom reported strong quarterly results, with revenue up 85.5% year over year to $29.59 billion and earnings of $3.32 per share, exceeding analyst expectations. The company also pays a quarterly dividend of $0.65, yielding about 0.8% annually.
• Wall Street maintains a “Moderate Buy” consensus, with an average price target of $529.17 versus the reported share price of $321.68. However, concerns include Alphabet diversifying its AI-chip suppliers and broader pressure on AI stocks.

Eagle Rock Investment Company LLC cut its position in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 1.8% during the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 105,317 shares of the semiconductor manufacturer's stock after selling 1,905 shares during the period. Broadcom comprises about 4.4% of Eagle Rock Investment Company LLC's investment portfolio, making the stock its 4th largest position. Eagle Rock Investment Company LLC's holdings in Broadcom were worth $36,986,000 at the end of the most recent reporting period.

A number of other large investors have also modified their holdings of the company. Measured Risk Portfolios Inc. acquired a new position in Broadcom during the third quarter worth $216,000. Kings Path Partners LLC bought a new stake in shares of Broadcom in the 3rd quarter worth about $105,000. Trifecta Capital Advisors LLC grew its holdings in shares of Broadcom by 1.8% in the 3rd quarter. Trifecta Capital Advisors LLC now owns 48,218 shares of the semiconductor manufacturer's stock worth $16,934,000 after purchasing an additional 856 shares during the last quarter. Income Insurance Ltd increased its position in shares of Broadcom by 0.6% during the 3rd quarter. Income Insurance Ltd now owns 14,062 shares of the semiconductor manufacturer's stock worth $4,938,000 after purchasing an additional 80 shares in the last quarter. Finally, Kraft Davis & Associates LLC increased its position in shares of Broadcom by 11.5% during the 3rd quarter. Kraft Davis & Associates LLC now owns 2,426 shares of the semiconductor manufacturer's stock worth $815,000 after purchasing an additional 250 shares in the last quarter. 76.43% of the stock is currently owned by institutional investors and hedge funds.

Broadcom Price Performance

AVGO opened at $321.68 on Friday. Broadcom Inc. has a one year low of $289.96 and a one year high of $495.00. 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 company's 50 day simple moving average is $356.05 and its 200-day simple moving average is $384.25. The stock has a market capitalization of $1.54 trillion, a P/E ratio of 41.08 and a beta of 1.46.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its quarterly earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share 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 business had revenue of $29.59 billion during the quarter, compared to analyst estimates of $29.24 billion. During the same quarter last year, the business posted $1.69 earnings per share. Broadcom's revenue for the quarter was up 85.5% compared to the same quarter last year. Sell-side analysts anticipate that Broadcom Inc. will post 10.37 earnings per share for the current fiscal year.

Broadcom Announces Dividend

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

Wall Street Analyst Weigh In

AVGO has been the topic of a number of recent analyst reports. Evercore set a $578.00 price target on shares of Broadcom and gave the company an "outperform" rating in a research report on Thursday, September 3rd. TD Cowen reiterated a "buy" rating and issued a $475.00 target price (down from $500.00) on shares of Broadcom in a research note on Thursday, September 3rd. The Goldman Sachs Group lifted their target price on shares of Broadcom from $525.00 to $540.00 and gave the company a "buy" rating in a research note on Thursday, September 3rd. BMO Capital Markets boosted their target price on Broadcom from $455.00 to $575.00 and gave the stock an "outperform" rating in a report on Thursday, September 3rd. Finally, KeyCorp restated an "overweight" rating and set a $575.00 price target on shares of Broadcom in a research report on Thursday, September 3rd. One equities research analyst has rated the stock with a Strong Buy rating, thirty-eight have given a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, Broadcom has a consensus rating of "Moderate Buy" and an average target price of $529.17.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: ETF investors bought approximately $89.8 million of Broadcom shares on October 21, signaling continued institutional demand. Broadcom Sees $89.8 Million in Net ETF Buying
• Positive Sentiment: Analysts continue to highlight Broadcom’s leadership in custom AI accelerators. Demand from major AI labs and hyperscalers, including Anthropic, OpenAI and Meta, supports management’s ambitious long-term AI semiconductor growth outlook. 3 Magnificent AI Chip Stocks
• Positive Sentiment: Tigress Financial initiated coverage with a Buy rating and a $600 price target, implying substantial upside from recent trading levels. Tigress Financial Broadcom Coverage
• Positive Sentiment: Broadcom launched Arcot Scam Defense, a real-time fraud-detection feature for digital payments. Strong initial pilot results could create incremental growth for its software and security businesses. Broadcom Debuts Arcot Scam Defense
• Neutral Sentiment: Broadcom remains the leading custom-chip design partner, but Alphabet is diversifying its TPU suppliers. Although Broadcom may lose market share, the overall AI accelerator market is expected to expand rapidly, potentially offsetting that loss. Broadcom AI Chip Business Risks
• Negative Sentiment: Investors are worried that customer-owned chip design and increased competition from MediaTek could reduce Broadcom’s role and margins in future AI programs. Alphabet’s supplier diversification is the clearest near-term risk. Broadcom AI Chip Business Risks
• Negative Sentiment: The broader market sell-off is weighing on AI stocks amid higher oil prices, inflation concerns and questions about whether massive data-center investments will generate sufficient returns. Technical commentary identifies the $320 area as an important support test. Broadcom Faces Critical $320 Test

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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