Broadcom Inc. $AVGO Stock: D.A. Davidson & CO. Cuts Holdings

Key Points

• D.A. Davidson reduced its Broadcom holdings by 0.6% in the third quarter, selling 4,076 shares, while institutional investors collectively own 76.43% of AVGO.
• Broadcom reported quarterly EPS of $3.32 and revenue of $29.59 billion, exceeding estimates, with revenue rising 85.5% year over year. The company also pays a quarterly dividend of $0.65 per share, yielding approximately 0.8%.
• Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and an average price target of $530.52, though the stock’s demanding valuation and execution risks surrounding its AI and Anthropic opportunities remain concerns.

D.A. Davidson & CO. cut its holdings in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 0.6% during the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 658,959 shares of the semiconductor manufacturer's stock after selling 4,076 shares during the period. Broadcom comprises approximately 1.2% of D.A. Davidson & CO.'s portfolio, making the stock its 11th largest position. D.A. Davidson & CO.'s holdings in Broadcom were worth $231,420,000 at the end of the most recent quarter.

A number of other institutional investors have also recently added to or reduced their stakes in AVGO. Essential Investment Partners LLC increased its position in Broadcom by 43.4% during the 3rd quarter. Essential Investment Partners LLC now owns 11,013 shares of the semiconductor manufacturer's stock valued at $3,868,000 after purchasing an additional 3,332 shares during the period. DecisionPoint Financial LLC lifted its position in shares of Broadcom by 101.9% in the 3rd quarter. DecisionPoint Financial LLC now owns 105 shares of the semiconductor manufacturer's stock worth $36,000 after purchasing an additional 53 shares during the period. WPG Advisers LLC acquired a new position in shares of Broadcom in the 3rd quarter worth approximately $877,000. North Dakota State Investment Board acquired a new position in shares of Broadcom in the 3rd quarter worth approximately $50,040,000. Finally, Vantage Investment Partners LLC boosted its stake in shares of Broadcom by 3.6% in the 3rd quarter. Vantage Investment Partners LLC now owns 50,884 shares of the semiconductor manufacturer's stock valued at $17,870,000 after purchasing an additional 1,788 shares during the last quarter. 76.43% of the stock is owned by institutional investors.

Broadcom Stock Performance

Shares of Broadcom stock opened at $326.08 on Monday. The company has a debt-to-equity ratio of 0.57, a quick ratio of 2.29 and a current ratio of 2.50. Broadcom Inc. has a 52 week low of $289.96 and a 52 week high of $495.00. The stock has a 50 day moving average price of $352.81 and a two-hundred day moving average price of $366.96. The stock has a market capitalization of $1.56 trillion, a PE ratio of 41.65 and a beta of 1.49.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its quarterly earnings data on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 EPS for the quarter, beating the consensus estimate of $3.22 by $0.10. The firm had revenue of $29.59 billion during the quarter, compared to the consensus estimate of $29.24 billion. Broadcom had a return on equity of 48.33% and a net margin of 42.94%. The company's quarterly revenue was up 85.5% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.69 earnings per share. As a group, equities analysts anticipate 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. Stockholders of record on Monday, September 21st were issued a dividend of $0.65 per share. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date was Monday, September 21st. Broadcom's dividend payout ratio (DPR) is currently 33.21%.

Broadcom News Roundup

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 Analyst Weigh In

Several equities research analysts have recently weighed in on AVGO shares. BMO Capital Markets increased their price objective on shares of Broadcom from $455.00 to $575.00 and gave the stock an "outperform" rating in a research report on Thursday, September 3rd. BNP Paribas Exane boosted their target price on shares of Broadcom from $675.00 to $715.00 and gave the company an "outperform" rating in a report on Friday, September 4th. Lake Street Capital raised shares of Broadcom to a "buy" rating in a research report on Thursday, September 3rd. Citic Securities raised shares of Broadcom to a "buy" rating and upped their price target for the company from $450.00 to $525.00 in a research report on Tuesday, September 8th. Finally, Weiss Ratings upgraded 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 assigned a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $530.52.

Broadcom 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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