Broadcom Inc. $AVGO Stock: Compass Wealth Management LLC Reduces Stake

Key Points

• Compass Wealth Management reduced its Broadcom stake by 2.1% in the third quarter, selling 1,657 shares and retaining 76,884 shares valued at approximately $27 million. Broadcom remains the firm’s largest holding, representing 5.2% of its portfolio.
• Broadcom’s AI infrastructure outlook remains strong, supported by reported financing of up to $63 billion for AI-computing infrastructure and Anthropic’s $224.5 billion in non-cancelable compute commitments. However, supplier diversification by Alphabet and tighter data-center financing pose risks.
• Analysts maintain a broadly positive view, with a consensus “Moderate Buy” rating and an average price target of $529.17. The company recently exceeded quarterly earnings and revenue expectations, while shares traded near $329.17, well below their 12-month high of $495.

Compass Wealth Management LLC cut its stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 2.1% during the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 76,884 shares of the semiconductor manufacturer's stock after selling 1,657 shares during the quarter. Broadcom comprises about 5.2% of Compass Wealth Management LLC's portfolio, making the stock its biggest position. Compass Wealth Management LLC's holdings in Broadcom were worth $27,001,000 as of its most recent filing with the Securities and Exchange Commission.

Other large investors have also recently made changes to their positions in the company. Networth Advisors LLC grew its position in shares of Broadcom by 546.2% in the 1st quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer's stock worth $26,000 after buying an additional 71 shares during the last quarter. Core Capital Management & Research inc. acquired a new position in shares of Broadcom during the second quarter worth $31,000. Harborfront Financial Group LLC acquired a new position in shares of Broadcom during the second quarter worth $38,000. Align Financial LLC boosted its holdings in Broadcom by 67.2% in 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 purchased a new stake in shares of Broadcom during the third quarter worth about $41,000. 76.43% of the stock is owned by institutional investors.

Broadcom News Summary

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: A coalition of banks and Blackstone is reportedly arranging a $63 billion financing vehicle to purchase AI-computing infrastructure from Broadcom and lease it to Anthropic. The proposed transaction would provide a potentially significant source of demand and revenue visibility. Banks, Blackstone Form $63 Billion Financing Vehicle for Broadcom AI Tech
• Positive Sentiment: Anthropic’s IPO filing disclosed approximately $224.5 billion of non-cancelable compute commitments with Amazon and Alphabet. The scale of those commitments supports continued spending on custom AI accelerators and networking equipment supplied or co-designed by Broadcom. Anthropic's IPO Filing Reveals a Massive Opportunity for AI Infrastructure Giants
• Positive Sentiment: Reports highlight unusually heavy call-option activity and argue that Broadcom’s custom AI chips are gaining popularity among major AI companies. Bullish commentary also points to strong projected growth in custom silicon and networking through 2030. Huge, unusual call option activity in Broadcom shows investors bullish on AVGO stock
• Neutral Sentiment: Broadcom’s stock is being described as potentially attractive after reaching a six-month low, although investors remain focused on whether future AI growth is already reflected in its premium valuation. Broadcom Is At a 6-Month Low - Is AVGO Stock Too Cheap?
• Negative Sentiment: Alphabet is reportedly diversifying its TPU suppliers to include MediaTek, raising concerns that Broadcom could lose some custom-chip business. Growing demand from Anthropic and OpenAI may offset that risk, but supplier diversification remains an important competitive threat. Broadcom's AI Chip Business Is Booming, But Alphabet's Strategy Highlights 2 Key Risks
• Negative Sentiment: Concerns that debt-market funding for AI data centers is tightening could slow infrastructure construction and customer spending. Separately, Erste Group Bank cut its earnings estimates for Broadcom, adding near-term pressure to expectations.

Analysts Set New Price Targets

AVGO has been the topic of several recent analyst reports. Citic Securities upgraded shares of Broadcom to a "buy" rating and upped their price objective for the company from $450.00 to $525.00 in a report on Tuesday, September 8th. Bank of America decreased their price objective on shares of Broadcom from $530.00 to $460.00 and set a "buy" rating for the company in a research report on Thursday, September 3rd. Evercore set a $578.00 target price on shares of Broadcom and gave the stock an "outperform" rating in a research note on Thursday, September 3rd. Truist Financial lowered their price objective on shares of Broadcom from $550.00 to $520.00 and set a "buy" rating for the company in a research note on Thursday, September 3rd. Finally, Weiss Ratings upgraded Broadcom from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, October 8th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-eight have assigned a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat, Broadcom currently has an average rating of "Moderate Buy" and a consensus price target of $529.17.

Broadcom Stock Up 2.3%

Shares of AVGO stock opened at $329.17 on Tuesday. The stock has a market cap of $1.57 trillion, a P/E ratio of 42.04 and a beta of 1.46. 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 stock has a 50 day moving average of $356.76 and a 200 day moving average of $367.07. Broadcom Inc. has a twelve month low of $289.96 and a twelve month high of $495.00.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its quarterly earnings data on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share for the quarter, beating analysts' consensus estimates of $3.22 by $0.10. The company had revenue of $29.59 billion during 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 firm's revenue for the quarter was up 85.5% on a year-over-year basis. During the same quarter in the previous year, the company earned $1.69 earnings per share. As a group, sell-side analysts expect that Broadcom Inc. will post 10.37 EPS for the current year.

Broadcom Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Monday, September 21st were paid a dividend of $0.65 per share. This represents a $2.60 annualized dividend and a dividend yield of 0.8%. The ex-dividend date of this dividend was Monday, September 21st. Broadcom's dividend 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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