Broadcom Inc. $AVGO Stock: Ledyard National Bank Cuts Position

Key Points

• Ledyard National Bank reduced its Broadcom stake by 4.1% in the third quarter, selling 4,659 shares and retaining 108,613 shares valued at approximately $38.1 million. Institutional investors collectively own 76.43% of Broadcom.
• Broadcom reported quarterly earnings of $3.32 per share, exceeding estimates, while revenue rose 85.5% year over year to $29.59 billion. The company also declared a quarterly dividend of $0.65 per share.
• Analysts maintain a broadly bullish outlook, with a consensus “Moderate Buy” rating and a $529.17 price target, though risks include Alphabet diversifying its custom-chip suppliers and tighter financing for AI data centers.

Ledyard National Bank decreased its stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 4.1% in the 3rd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 108,613 shares of the semiconductor manufacturer's stock after selling 4,659 shares during the period. Broadcom makes up 3.0% of Ledyard National Bank's investment portfolio, making the stock its 7th largest holding. Ledyard National Bank's holdings in Broadcom were worth $38,144,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors have also recently made changes to their positions in the stock. Seros Financial LLC boosted its holdings in Broadcom by 26.6% during the third quarter. Seros Financial LLC now owns 1,101 shares of the semiconductor manufacturer's stock worth $387,000 after buying an additional 231 shares in the last quarter. Virtue Asset Management LLC grew its position in Broadcom by 2.5% during the third quarter. Virtue Asset Management LLC now owns 6,102 shares of the semiconductor manufacturer's stock worth $2,143,000 after buying an additional 149 shares during the period. Legacy Financial Group Inc. grew its position in Broadcom by 33.5% during the third quarter. Legacy Financial Group Inc. now owns 1,475 shares of the semiconductor manufacturer's stock worth $518,000 after buying an additional 370 shares during the period. NBT Bank N.A. purchased a new position in Broadcom in the third quarter valued at about $5,927,000. Finally, Root Financial Partners LLC increased its holdings in Broadcom by 1.4% in the third quarter. Root Financial Partners LLC now owns 33,026 shares of the semiconductor manufacturer's stock valued at $11,598,000 after buying an additional 472 shares in the last quarter. Institutional investors and hedge funds own 76.43% of the company's stock.

Broadcom Price Performance

Shares of NASDAQ AVGO opened at $329.17 on Tuesday. The stock has a market cap of $1.57 trillion, a price-to-earnings ratio of 42.04 and a beta of 1.46. Broadcom Inc. has a 52 week low of $289.96 and a 52 week high of $495.00. The company's 50-day moving average price is $356.76 and its 200 day moving average price is $367.07. The company has a current ratio of 2.50, a quick ratio of 2.29 and a debt-to-equity ratio of 0.57.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share 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 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 period last year, the firm posted $1.69 EPS. As a group, 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 declared a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Monday, September 21st were given a $0.65 dividend. The ex-dividend date was Monday, September 21st. This represents a $2.60 annualized dividend and a dividend yield of 0.8%. Broadcom's dividend payout ratio is currently 33.21%.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on AVGO shares. Raymond James Financial reiterated an "outperform" rating and set a $475.00 price target (up from $450.00) on shares of Broadcom in a research report on Thursday, September 3rd. TD Cowen reissued a "buy" rating and set a $475.00 price target (down from $500.00) on shares of Broadcom in a research note on Thursday, September 3rd. Citigroup restated a "buy" rating and issued a $515.00 price target (up from $500.00) on shares of Broadcom in a report on Friday, September 4th. KeyCorp reaffirmed an "overweight" rating and issued a $575.00 price objective on shares of Broadcom in a research note on Thursday, September 3rd. Finally, Tigress Financial started coverage on Broadcom in a report on Thursday, October 22nd. They set a "buy" rating and a $600.00 price objective for the company. One equities research analyst has rated the stock with a Strong Buy rating, thirty-eight have given a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat, Broadcom has a consensus rating of "Moderate Buy" and a consensus price target of $529.17.

Key Stories Impacting Broadcom

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.

Broadcom Company 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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