Broadcom Inc. $AVGO Shares Sold by Matrix Trust Co

Key Points

• Matrix Trust Co. cut its Broadcom stake by 45.1% in the third quarter, selling 4,491 shares and retaining 5,457 shares worth approximately $1.92 million.
• Despite Matrix’s reduction, major institutions including State Street, Bank of America, Wellington Management and UBS increased their positions; institutional investors collectively own 76.43% of Broadcom’s stock.
• Broadcom continues to benefit from strong AI demand, with recent quarterly revenue rising 85.5% year over year and earnings exceeding estimates. Analysts maintain a broadly positive outlook, with a “Moderate Buy” consensus and an average price target of $527.20, although valuation and dependence on AI infrastructure remain risks.

Matrix Trust Co lowered its holdings in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 45.1% in the third quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 5,457 shares of the semiconductor manufacturer's stock after selling 4,491 shares during the period. Matrix Trust Co's holdings in Broadcom were worth $1,916,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also modified their holdings of AVGO. State Street Corp boosted its stake 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 valued at $75,367,711,000 after buying an additional 16,651,378 shares during the period. Bank of America Corp DE boosted its stake in Broadcom by 4.6% during the second quarter. Bank of America Corp DE now owns 61,423,013 shares of the semiconductor manufacturer's stock worth $23,202,543,000 after buying an additional 2,685,916 shares in the last quarter. Wellington Management Group LLP boosted its stake in Broadcom by 3.8% in the 2nd quarter. Wellington Management Group LLP now owns 51,580,703 shares of the semiconductor manufacturer's stock valued at $19,484,611,000 after buying an additional 1,892,721 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in shares of Broadcom by 2.9% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 40,180,530 shares of the semiconductor manufacturer's stock valued at $15,178,195,000 after acquiring an additional 1,140,598 shares during the last quarter. Finally, Legal & General Group Plc bought a new stake in Broadcom during the 2nd quarter worth about $11,998,148,000. Hedge funds and other institutional investors own 76.43% of the company's stock.

Key Headlines Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s AI revenue reportedly grew 221% year over year, reinforcing its position as a leading supplier of custom AI accelerators and networking equipment. Analysts argue that custom chips could become a larger and more durable opportunity than general-purpose GPUs as hyperscalers seek improved power efficiency and workload optimization. Broadcom's AI Revenue Is Growing at 221%
• Positive Sentiment: Marvell Technology’s ambitious custom-AI-chip outlook is a positive read-through for Broadcom, which competes for hyperscaler ASIC and networking projects. Marvell’s investor-day targets and emphasis on custom silicon helped lift sentiment across the segment. Marvell Rallies as Custom AI Silicon Gains Attention
• Positive Sentiment: Unusually heavy call-option activity, a reported $13 million Broadcom purchase by Cathie Wood, and bullish comparisons with Nvidia indicate continued institutional and retail interest in AVGO’s AI growth prospects. Cathie Wood Just Bought Broadcom Stock
• Neutral Sentiment: Morgan Stanley believes Broadcom and Nvidia may be relatively protected from a potential U.S. data-center power shortage, although constrained electricity could still slow the broader AI infrastructure buildout. Nvidia and Broadcom May Be Protected From AI Power Shortage
• Negative Sentiment: Investor skepticism remains the main overhang: some coverage questions whether strong AI results are already priced in and highlights concerns about circular financing linked to Anthropic, hyperscaler dependence and the stock’s tendency to disappoint after earnings beats. These risks help explain why AVGO has not been consistently rewarded for its operating performance. Broadcom: When The Story And The Stock Disagree

Wall Street Analysts Forecast Growth

Several analysts have commented on the stock. Erste Group Bank reiterated a "hold" rating on shares of Broadcom in a research report on Tuesday, July 7th. HSBC reduced their price objective on Broadcom from $600.00 to $560.00 and set a "buy" rating for the company in a research report on Thursday, September 3rd. Morgan Stanley restated an "overweight" rating and issued a $505.00 price objective (up from $502.00) on shares of Broadcom in a report on Thursday, September 3rd. Fox Advisors raised shares of Broadcom to an "outperform" rating in a report on Thursday, September 3rd. Finally, Rosenblatt Securities started coverage on Broadcom in a research note on Thursday, September 3rd. They issued a "buy" rating and a $600.00 price objective on the stock. One analyst has rated the stock with a Strong Buy rating, thirty-seven have assigned a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $527.20.

Insider Transactions at Broadcom

In other news, insider Mark Brazeal sold 25,000 shares of Broadcom stock in a transaction dated 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 sale, the insider directly owned 194,989 shares of the company's stock, valued at approximately $78,254,935.37. This trade represents a 11.36% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 1.90% of the stock is currently owned by insiders.

Broadcom Price Performance

AVGO traded down $1.79 on Wednesday, hitting $374.02. 8,106,678 shares of the stock were exchanged, compared to its average volume of 25,066,063. The company has a debt-to-equity ratio of 0.57, a current ratio of 2.50 and a quick ratio of 2.29. Broadcom Inc. has a 12 month low of $289.96 and a 12 month high of $495.00. The firm has a market capitalization of $1.79 trillion, a price-to-earnings ratio of 47.73 and a beta of 1.46. The business has a 50-day moving average of $372.22 and a two-hundred day moving average of $381.78.

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 for the quarter, compared to analysts' expectations of $29.24 billion. During the same quarter in the previous year, the business posted $1.69 earnings per share. The business's revenue for the quarter was up 85.5% on a year-over-year basis. Sell-side analysts forecast that Broadcom Inc. will post 10.37 EPS for the current fiscal year.

Broadcom Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Monday, September 21st were issued 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 0.7%. Broadcom's dividend payout ratio (DPR) is 33.21%.

About Broadcom

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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