Broadcom Inc. $AVGO Stake Trimmed by Middleton & Co. Inc. MA

Key Points

• Middleton & Co. trimmed its Broadcom stake by 3.0% in the third quarter, selling 3,665 shares and retaining 117,523 shares valued at approximately $41.3 million. Broadcom remains the firm’s fourth-largest holding and represents 4.4% of its portfolio.
• Broadcom reported strong quarterly results, with adjusted EPS of $3.32 and revenue of $29.59 billion, up 85.5% year over year. Institutional investors own 76.43% of the stock, while analysts maintain a “Moderate Buy” consensus and an average price target of $530.52.
• AI infrastructure demand is supporting the bullish outlook, including a reported $63 billion financing structure tied to Anthropic’s use of Broadcom equipment. However, analysts cite risks from customer concentration, supply constraints, margin pressure, financing obligations and elevated valuation.

Middleton & Co. Inc. MA reduced its stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 3.0% in the third quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 117,523 shares of the semiconductor manufacturer's stock after selling 3,665 shares during the period. Broadcom comprises 4.4% of Middleton & Co. Inc. MA's investment portfolio, making the stock its 4th biggest position. Middleton & Co. Inc. MA's holdings in Broadcom were worth $41,273,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors and hedge funds have also recently modified their holdings of AVGO. Simplicity Wealth LLC raised its stake in Broadcom by 13.2% in the 3rd quarter. Simplicity Wealth LLC now owns 81,918 shares of the semiconductor manufacturer's stock valued at $28,769,000 after acquiring an additional 9,523 shares during the period. Madrona Financial Services LLC lifted its holdings in Broadcom by 3.5% during the third quarter. Madrona Financial Services LLC now owns 2,328 shares of the semiconductor manufacturer's stock valued at $818,000 after purchasing an additional 79 shares during the last quarter. Brookmont Capital Management boosted its position in Broadcom by 6.5% during the third quarter. Brookmont Capital Management now owns 1,499 shares of the semiconductor manufacturer's stock worth $526,000 after purchasing an additional 92 shares during the period. Mountain Hill Investment Partners Corp. boosted its position in Broadcom by 312.4% during the third quarter. Mountain Hill Investment Partners Corp. now owns 35,156 shares of the semiconductor manufacturer's stock worth $12,346,000 after purchasing an additional 26,631 shares during the period. Finally, Vima LLC boosted its position in Broadcom by 35.4% during the third quarter. Vima LLC now owns 283 shares of the semiconductor manufacturer's stock worth $99,000 after purchasing an additional 74 shares during the period. 76.43% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on AVGO. Raymond James Financial reissued an "outperform" rating and issued a $475.00 price target (up from $450.00) on shares of Broadcom in a research report on Thursday, September 3rd. KeyCorp reaffirmed an "overweight" rating and issued a $575.00 price objective on shares of Broadcom in a report on Thursday, September 3rd. Erste Group Bank downgraded shares of Broadcom from a "buy" rating to a "hold" rating in a report on Tuesday, July 7th. William Blair lowered shares of Broadcom from an "outperform" rating to a "market perform" rating in a research note on Tuesday. Finally, JPMorgan Chase & Co. restated a "buy" rating on shares of Broadcom in a research report on Thursday, September 3rd. One research analyst has rated the stock with a Strong Buy rating, thirty-nine have assigned a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $530.52.

Broadcom Stock Up 2.8%

Shares of NASDAQ:AVGO opened at $351.81 on Thursday. The firm has a fifty day moving average price of $353.92 and a two-hundred day moving average price of $367.09. 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 one year low of $289.96 and a one year high of $495.00. The company has a market cap of $1.68 trillion, a price-to-earnings ratio of 44.93 and a beta of 1.46.

Broadcom (NASDAQ:AVGO - Get Free Report) last released 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 during the quarter, compared to analyst estimates 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 previous year, the business earned $1.69 EPS. Analysts anticipate that Broadcom Inc. will post 10.37 EPS for the current fiscal year.

Broadcom Announces Dividend

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

More 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.

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 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.

Want to see what other hedge funds are holding AVGO? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Broadcom Inc. (NASDAQ:AVGO - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.