Broadcom Inc. $AVGO Stake Raised by Simplicity Wealth LLC

Key Points

• Simplicity Wealth LLC increased its Broadcom stake by 13.2% in the third quarter to 81,918 shares valued at approximately $28.8 million. Institutional investors collectively own 76.43% of Broadcom.
• Broadcom reported strong quarterly results, with EPS of $3.32 beating estimates and revenue rising 85.5% year over year to $29.59 billion. The company also maintains a quarterly dividend of $0.65, equal to a 0.7% annual yield.
• Analysts remain broadly bullish, with Broadcom carrying a “Moderate Buy” consensus rating and an average price target of $530.52, although AI customer concentration, financing risks and margin pressure remain concerns.

Simplicity Wealth LLC raised its holdings in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 13.2% during the third quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 81,918 shares of the semiconductor manufacturer's stock after purchasing an additional 9,523 shares during the quarter. Broadcom accounts for approximately 0.8% of Simplicity Wealth LLC's investment portfolio, making the stock its 17th biggest position. Simplicity Wealth LLC's holdings in Broadcom were worth $28,769,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors also recently modified their holdings of AVGO. Networth Advisors LLC boosted its stake in Broadcom by 546.2% in the first quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer's stock valued at $26,000 after buying an additional 71 shares in the last quarter. Core Capital Management & Research inc. bought a new position in Broadcom in the second quarter valued at about $31,000. Harborfront Financial Group LLC acquired a new position in Broadcom during the second quarter worth about $38,000. Align Financial LLC raised its stake in Broadcom by 67.2% during the third quarter. Align Financial LLC now owns 112 shares of the semiconductor manufacturer's stock worth $38,000 after acquiring an additional 45 shares in the last quarter. Finally, Curry Webb Wealth Management LLC bought a new position in shares of Broadcom in the third quarter worth about $41,000. Institutional investors own 76.43% of the company's stock.

Broadcom Price Performance

Broadcom stock opened at $351.81 on Thursday. The company has a current ratio of 2.50, a quick ratio of 2.29 and a debt-to-equity ratio of 0.57. The company has a market capitalization of $1.68 trillion, a PE ratio of 44.93 and a beta of 1.46. Broadcom Inc. has a 12 month low of $289.96 and a 12 month high of $495.00. The stock has a 50-day moving average price of $353.92 and a two-hundred day moving average price of $367.09.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its quarterly earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 EPS for the quarter, beating analysts' consensus estimates of $3.22 by $0.10. The firm had revenue of $29.59 billion for the quarter, compared to analyst estimates of $29.24 billion. Broadcom had a return on equity of 48.33% and a net margin of 42.94%. The business's revenue for the quarter was up 85.5% on a year-over-year basis. During the same period last year, the firm posted $1.69 earnings per share. Analysts expect that Broadcom Inc. will post 10.37 EPS for the current year.

Broadcom Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Monday, September 21st were issued a $0.65 dividend. This represents a $2.60 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date was Monday, September 21st. Broadcom's dividend payout ratio (DPR) is 33.21%.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on the stock. Lake Street Capital upgraded shares of Broadcom to a "buy" rating in a research note on Thursday, September 3rd. Weiss Ratings upgraded shares of Broadcom from a "buy (b-)" rating to a "buy (b)" rating in a research report on Thursday, October 8th. TD Cowen reiterated a "buy" rating and set a $475.00 price objective (down from $500.00) on shares of Broadcom in a research report on Thursday, September 3rd. Arete Research increased their price objective on shares of Broadcom from $488.00 to $530.00 and gave the company a "buy" rating in a research note on Tuesday, July 21st. Finally, JPMorgan Chase & Co. restated a "buy" rating 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-nine have given a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat.com, Broadcom currently has an average rating of "Moderate Buy" and an average target price of $530.52.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: D.A. Davidson upgraded Broadcom to Buy from Neutral and raised its price target from $350 to $400. The firm cited continued AI spending and potential public offerings by major AI developers, improving sentiment toward Broadcom’s custom-chip and networking outlook. D.A. Davidson upgrades Broadcom to buy from neutral
• Positive Sentiment: A $63 billion financing structure for Anthropic’s AI infrastructure is the main business catalyst. Banks and Blackstone reportedly committed financing for a special-purpose vehicle to purchase and lease Broadcom accelerators and networking equipment. Truist estimates the arrangement could generate as much as $30 billion in revenue, while the deal signals strong demand for Broadcom’s AI systems. Broadcom Anthropic financing structure
• Positive Sentiment: Credit-quality support also improved. Fitch affirmed Broadcom’s A- rating with a positive outlook, citing strong cash generation and operating momentum. Rosenblatt separately reaffirmed a Buy rating with a $600 target, underscoring the bullish view of long-term AI demand. Fitch affirms Broadcom rating
• Neutral Sentiment: Broadcom may participate in a potential investment in Meta, alongside other chip suppliers. The move could deepen customer ties and provide exposure to Meta’s AI expansion, but investing in a major customer also raises concerns about circular financing and customer concentration. Chip suppliers may invest in Meta
• Negative Sentiment: The Anthropic arrangement introduces meaningful risk. Banks reportedly considered withdrawing, and Broadcom’s potentially large AI-rack lease backstop could create off-balance-sheet obligations. Analysts also cite rising AI-related margin pressure, supply constraints, dependence on a concentrated customer base and competition from Credo. Higher interest rates could further pressure the valuation of high-growth technology shares.

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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