Broadcom Inc. $AVGO Shares Sold by Pinnacle Associates Ltd.

Key Points

• Pinnacle Associates reduced its Broadcom position by 1.7%, selling 7,698 shares and retaining 443,809 shares valued at approximately $155.9 million. Institutional investors collectively own 76.43% of the company.
• Broadcom reported quarterly earnings and revenue above analyst expectations, with revenue rising 85.5% year over year to $29.59 billion. The company also maintains a quarterly dividend of $0.65 per share, yielding about 0.8%.
• Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and an average price target of $529.17, though supplier diversification by Alphabet and increasing AI-chip competition pose risks to Broadcom’s future market share and margins.

Pinnacle Associates Ltd. reduced its position in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 1.7% in the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 443,809 shares of the semiconductor manufacturer's stock after selling 7,698 shares during the quarter. Broadcom comprises approximately 1.7% of Pinnacle Associates Ltd.'s portfolio, making the stock its 7th biggest position. Pinnacle Associates Ltd.'s holdings in Broadcom were worth $155,861,000 at the end of the most recent quarter.

Other hedge funds have also modified their holdings of the company. Fullerton Advisors LLC boosted its stake in Broadcom by 1.3% during the 1st quarter. Fullerton Advisors LLC now owns 1,989 shares of the semiconductor manufacturer's stock worth $616,000 after purchasing an additional 25 shares during the period. NORTHSTAR ASSET MANAGEMENT Co grew its position in Broadcom by 0.5% during the 1st quarter. NORTHSTAR ASSET MANAGEMENT Co now owns 5,350 shares of the semiconductor manufacturer's stock worth $1,656,000 after purchasing an additional 25 shares during the last quarter. Yukon Wealth Management Inc. increased its stake in Broadcom by 1.1% in the first quarter. Yukon Wealth Management Inc. now owns 2,501 shares of the semiconductor manufacturer's stock valued at $774,000 after purchasing an additional 26 shares during the period. NerdWallet Wealth Partners LLC increased its stake in Broadcom by 2.6% in the second quarter. NerdWallet Wealth Partners LLC now owns 1,057 shares of the semiconductor manufacturer's stock valued at $399,000 after purchasing an additional 27 shares during the period. Finally, Veery Capital LLC raised its holdings in shares of Broadcom by 1.4% in the second quarter. Veery Capital LLC now owns 1,900 shares of the semiconductor manufacturer's stock valued at $718,000 after buying an additional 27 shares during the last quarter. 76.43% of the stock is currently owned by hedge funds and other institutional investors.

Broadcom News Roundup

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 Price Performance

Broadcom stock opened at $321.68 on Friday. The company has a market cap of $1.54 trillion, a P/E ratio of 41.08 and a beta of 1.46. Broadcom Inc. has a one year low of $289.96 and a one year high of $495.00. The business has a fifty day moving average of $356.05 and a two-hundred day moving average of $384.25. 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 (NASDAQ:AVGO - Get Free Report) last posted its quarterly earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share for the quarter, topping analysts' consensus estimates of $3.22 by $0.10. The business had revenue of $29.59 billion for 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% on a year-over-year basis. During the same period in the prior year, the company posted $1.69 EPS. As a group, analysts predict that Broadcom Inc. will post 10.37 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

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

Analysts Set New Price Targets

Several research analysts have weighed in on AVGO shares. The Goldman Sachs Group lifted their target price on Broadcom from $525.00 to $540.00 and gave the company a "buy" rating in a research note on Thursday, September 3rd. President Capital raised their target price on shares of Broadcom from $520.00 to $546.00 and gave the stock a "buy" rating in a research note on Thursday, September 3rd. DA Davidson set a $350.00 target price on shares of Broadcom and gave the company a "neutral" rating in a report on Friday, September 4th. KeyCorp reaffirmed an "overweight" rating and issued a $575.00 target price on shares of Broadcom in a report on Thursday, September 3rd. Finally, BMO Capital Markets boosted their price target on shares of Broadcom from $455.00 to $575.00 and gave the stock an "outperform" rating in a research note on Thursday, September 3rd. One equities research analyst has rated the stock with a Strong Buy rating, thirty-eight have issued a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, Broadcom presently has a consensus rating of "Moderate Buy" and an average target price of $529.17.

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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