Broadcom Inc. $AVGO Stock: Busey Bank Lowers Position

Key Points

• Busey Bank reduced its Broadcom position by 1.0% in the third quarter, selling 2,801 shares and retaining 289,369 shares valued at approximately $101.6 million. Institutional investors collectively own 76.43% of AVGO.
• Broadcom’s AI growth outlook remains a major focus, with potential demand from Anthropic and Meta and projected AI semiconductor revenue of $115 billion in fiscal 2027 and $230 billion in fiscal 2028. However, investors remain concerned about execution, financing obligations and the high cost of AI infrastructure.
• AVGO recently traded at $326.08, down 5.5% and below its 50-day and 200-day moving averages, despite strong quarterly results and a consensus analyst rating of “Moderate Buy” with a $530.52 price target.

Busey Bank decreased its position in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 1.0% during the third quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 289,369 shares of the semiconductor manufacturer's stock after selling 2,801 shares during the period. Broadcom makes up approximately 2.4% of Busey Bank's holdings, making the stock its 7th largest holding. Busey Bank's holdings in Broadcom were worth $101,624,000 at the end of the most recent reporting period.

Several other hedge funds have also recently added to or reduced their stakes in the company. Generali Asset Management SPA SGR lifted its stake in Broadcom by 5.8% in the third quarter. Generali Asset Management SPA SGR now owns 264,230 shares of the semiconductor manufacturer's stock worth $92,795,000 after purchasing an additional 14,463 shares during the last quarter. IMG Wealth Management Inc. increased its holdings in shares of Broadcom by 314.1% in the third quarter. IMG Wealth Management Inc. now owns 704 shares of the semiconductor manufacturer's stock worth $247,000 after buying an additional 534 shares during the period. Asset Management One Co. Ltd. increased its holdings in shares of Broadcom by 1.1% in the third quarter. Asset Management One Co. Ltd. now owns 2,171,096 shares of the semiconductor manufacturer's stock worth $762,467,000 after buying an additional 23,212 shares during the period. John Boyer Inc. purchased a new position in shares of Broadcom in the third quarter worth about $538,000. Finally, MADDEN SECURITIES Corp lifted its stake in shares of Broadcom by 5.1% in the 3rd quarter. MADDEN SECURITIES Corp now owns 20,188 shares of the semiconductor manufacturer's stock valued at $7,090,000 after acquiring an additional 984 shares during the last quarter. Institutional investors own 76.43% of the company's stock.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: DA Davidson upgraded Broadcom to Buy from Neutral and raised its price target to $400 from $350. The firm cited Broadcom’s exposure to major AI customers, including Anthropic and potentially OpenAI. Broadcom Falls Despite DA Davidson Upgrade
• Positive Sentiment: A $63 billion financing arrangement is expected to fund purchases of Broadcom AI hardware for Anthropic. The deal provides a potentially large, funded customer for Broadcom’s custom-chip and networking business, although the company could face substantial obligations under the agreement’s backstop. Broadcom’s $63 Billion Anthropic Deal
• Positive Sentiment: Longer-term investment theses remain favorable: Broadcom projects AI semiconductor revenue of approximately $115 billion in fiscal 2027 and $230 billion in fiscal 2028. Meta’s planned financing for its AI expansion could also support additional demand for Broadcom’s custom silicon and networking products. Meta Financing Plan and Broadcom
• Neutral Sentiment: Broadcom is trading well below its record high and below its 50-day and 200-day moving averages. Analysts see upside, but valuation remains demanding, making execution of the AI growth forecast particularly important.
• Negative Sentiment: Intel’s weaker-than-expected forecast prompted investors to reassess semiconductor demand. Concerns were reinforced by Amazon’s results and the rising cost of building AI infrastructure, pressuring AI-exposed chip stocks broadly. Why Intel, AMD and Broadcom Are Falling
• Negative Sentiment: The Anthropic transaction also carries execution and financial-risk questions. Investors are waiting to see whether Broadcom can manufacture and deliver the required hardware at scale before fully crediting the projected revenue. Broadcom’s Anthropic Deal and Execution Risk

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on AVGO shares. William Blair lowered Broadcom from an "outperform" rating to a "market perform" rating in a research note on Tuesday. Wall Street Zen lowered shares of Broadcom from a "strong-buy" rating to a "buy" rating in a report on Saturday, July 18th. Raymond James Financial reiterated an "outperform" rating and set a $475.00 price target (up from $450.00) on shares of Broadcom in a report on Thursday, September 3rd. Piper Sandler initiated coverage on shares of Broadcom in a research report on Wednesday, September 9th. They set an "overweight" rating and a $460.00 price target for the company. Finally, Weiss Ratings raised shares of Broadcom from a "buy (b-)" rating to a "buy (b)" rating in a report on Thursday, October 8th. One analyst has rated the stock with a Strong Buy rating, thirty-nine have assigned a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat, Broadcom has an average rating of "Moderate Buy" and a consensus price target of $530.52.

Broadcom Trading Down 5.5%

NASDAQ AVGO opened at $326.08 on Friday. The company has a quick ratio of 2.29, a current ratio of 2.50 and a debt-to-equity ratio of 0.57. Broadcom Inc. has a twelve month low of $289.96 and a twelve month high of $495.00. The firm has a market capitalization of $1.56 trillion, a PE ratio of 41.65 and a beta of 1.46. The stock's 50 day moving average is $352.81 and its 200 day moving average is $366.96.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its quarterly earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share for the quarter, topping the consensus estimate of $3.22 by $0.10. Broadcom had a return on equity of 48.33% and a net margin of 42.94%. The company had revenue of $29.59 billion for the quarter, compared to analysts' expectations of $29.24 billion. During the same period in the prior year, the firm earned $1.69 earnings per share. The firm's revenue for the quarter was up 85.5% on a year-over-year basis. Research analysts forecast that Broadcom Inc. will post 10.37 earnings per share 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 0.8%. Broadcom's payout ratio is presently 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 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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