Broadcom Inc. $AVGO Stock Acquired by CX Institutional

Key Points

• CX Institutional increased its Broadcom stake by 5.9% in the third quarter to 95,802 shares valued at approximately $32.7 million. Institutional investors collectively own 76.43% of AVGO.
• Broadcom is reportedly preparing up to $60 billion in financing for Anthropic and other AI companies, including as much as $42 billion to help Anthropic lease Broadcom chips. The arrangement could boost AI-chip demand but raises questions about customer financing and concentration risk.
• Broadcom reported quarterly revenue of $29.59 billion, up 85.5% year over year, and earnings of $3.32 per share, exceeding expectations. Despite a “Moderate Buy” consensus rating and a $527.20 average price target, the stock remains below recent highs and trades at an elevated price-to-earnings ratio of 45.36.

CX Institutional increased its stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 5.9% during the third quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 95,802 shares of the semiconductor manufacturer's stock after buying an additional 5,334 shares during the quarter. Broadcom comprises about 0.9% of CX Institutional's holdings, making the stock its 24th largest position. CX Institutional's holdings in Broadcom were worth $32,670,000 as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. State Street Corp grew its position in Broadcom by 8.7% in 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 last quarter. Bank of America Corp DE increased its stake in shares of 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 acquiring an additional 2,685,916 shares during the period. Wellington Management Group LLP raised its holdings in Broadcom by 3.8% during the second quarter. Wellington Management Group LLP now owns 51,580,703 shares of the semiconductor manufacturer's stock worth $19,484,611,000 after purchasing an additional 1,892,721 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in 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 purchasing an additional 1,140,598 shares during the period. Finally, Legal & General Group Plc acquired a new position in Broadcom during the 2nd quarter worth approximately $11,998,148,000. 76.43% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom and its banking syndicate are reportedly preparing as much as $60 billion in financing for Anthropic and other AI companies. The package could include $42 billion of senior-secured debt and an additional $18 billion junior tranche, potentially helping customers fund large-scale chip and infrastructure deployments. Why Broadcom stock is gaining today?
• Positive Sentiment: Anthropic’s IPO filing reportedly shows that Broadcom could lend the AI company up to $42 billion to lease Broadcom chips. The arrangement strengthens Broadcom’s relationship with a potentially major customer and could support future AI-chip revenue, although some financing may be convertible into Anthropic shares. Broadcom to lend Anthropic up to $42 billion to lease its chips
• Positive Sentiment: Analysts and commentators remain constructive on Broadcom’s long-term outlook, citing a reported 221% increase in AI revenue, chip relationships with Google, Meta and OpenAI, and repeated earnings beats. UBS also reportedly presented a bullish view after discussions with Broadcom’s CEO. Broadcom, Marvell, and SanDisk Are Quietly Building Toward a Massive Bull Run
• Neutral Sentiment: The financing news is a major AI-growth signal, but investors are assessing whether it represents durable demand or a more circular arrangement in which Broadcom helps customers finance purchases of Broadcom’s own chips. Broadcom Is Lending One of Its Biggest Customers $42 Billion to Buy Its Chips
• Negative Sentiment: Broadcom’s stock remains under pressure relative to recent highs, and one analysis noted it was down since the last earnings report. The company’s elevated valuation and exposure to Anthropic’s ability to fund substantial infrastructure commitments remain key risks.

Broadcom Price Performance

Shares of NASDAQ AVGO traded up $11.50 on Friday, hitting $355.14. The company's stock had a trading volume of 24,588,659 shares, compared to its average volume of 25,145,607. The stock has a 50 day moving average of $373.28 and a 200-day moving average of $380.85. The company has a market capitalization of $1.70 trillion, a price-to-earnings ratio of 45.36 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 company has a debt-to-equity ratio of 0.57, a current ratio of 2.50 and a quick ratio of 2.29.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its quarterly earnings data 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. 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 analysts' expectations of $29.24 billion. During the same period last year, the company posted $1.69 EPS. The company's revenue was up 85.5% on a year-over-year basis. As a group, research analysts predict that Broadcom Inc. will post 10.37 EPS for the current year.

Broadcom Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Monday, September 21st were given a $0.65 dividend. This represents a $2.60 annualized dividend and a dividend yield of 0.7%. The ex-dividend date was Monday, September 21st. Broadcom's dividend payout ratio is currently 33.21%.

Analyst Upgrades and Downgrades

Several research firms have recently commented on AVGO. Oppenheimer reissued an "outperform" rating and issued a $535.00 price target (up from $450.00) on shares of Broadcom in a report on Thursday, June 4th. New Street Research raised their target price on Broadcom from $420.00 to $600.00 and gave the company a "buy" rating in a report on Thursday, June 4th. Wall Street Zen cut shares of Broadcom from a "strong-buy" rating to a "buy" rating in a research note on Saturday, July 18th. TD Cowen reiterated a "buy" rating and issued a $475.00 price objective (down from $500.00) on shares of Broadcom in a research note on Thursday, September 3rd. Finally, Dbs Bank upgraded shares of Broadcom to a "moderate buy" rating in a research report on Thursday, June 18th. One equities research 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 company's stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $527.20.

Insiders Place Their Bets

In other Broadcom news, insider Mark Brazeal sold 25,000 shares of the firm's stock in a transaction dated Friday, July 10th. The shares were 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 $78,254,935.37. This trade represents a 11.36% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Gayla J. Delly sold 1,890 shares of Broadcom stock in a transaction dated Wednesday, July 8th. The stock was sold at an average price of $385.38, for a total transaction of $728,368.20. Following the sale, the director owned 31,326 shares of the company's stock, valued at approximately $12,072,413.88. This trade represents a 5.69% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 51,890 shares of company stock worth $20,241,368. Corporate insiders own 1.90% of the company's stock.

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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