Broadcom Inc. $AVGO Stock: Mitsubishi UFJ Morgan Stanley Securities Co. Ltd. Cuts Holdings

Key Points

• Mitsubishi UFJ Morgan Stanley Securities cut its Broadcom stake by 44% in the third quarter, selling 3,935 shares and retaining 5,000 shares valued at $1.756 million.
• Broadcom shares fell to $347.01 in Friday trading. Analysts’ average rating was “Moderate Buy” with a $525.19 average price target, though one firm warned about risks tied to AI financing and cut its rating and target.
• Broadcom beat quarterly estimates, reporting EPS of $3.32 versus $3.22 expected and revenue of $29.59 billion, up 85.5% year over year.

Mitsubishi UFJ Morgan Stanley Securities Co. Ltd. reduced its stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 44.0% in the third quarter, according to its most recent filing with the SEC. The institutional investor owned 5,000 shares of the semiconductor manufacturer's stock after selling 3,935 shares during the period. Broadcom comprises approximately 4.6% of Mitsubishi UFJ Morgan Stanley Securities Co. Ltd.'s portfolio, making the stock its 3rd biggest position. Mitsubishi UFJ Morgan Stanley Securities Co. Ltd.'s holdings in Broadcom were worth $1,756,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also recently modified their holdings of AVGO. Core Capital Management & Research inc. purchased a new position in shares of Broadcom during the second quarter valued at approximately $31,000. DecisionPoint Financial LLC grew its holdings in Broadcom by 101.9% during the third quarter. DecisionPoint Financial LLC now owns 105 shares of the semiconductor manufacturer's stock worth $36,000 after buying an additional 53 shares in the last quarter. Harborfront Financial Group LLC bought a new stake in Broadcom during the second quarter worth $38,000. Align Financial LLC raised its position in Broadcom by 67.2% in the 3rd quarter. Align Financial LLC now owns 112 shares of the semiconductor manufacturer's stock valued at $38,000 after buying an additional 45 shares during the last quarter. Finally, Curry Webb Wealth Management LLC purchased a new stake in Broadcom in the 3rd quarter valued at $41,000. 76.43% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Broadcom

Here are a few of the latest headlines about AVGO:

• Positive Sentiment: Broadcom could benefit as cloud providers diversify beyond NVIDIA and invest in custom AI chips. The company designs custom ASICs for hyperscalers, and Anthropic’s disclosed spending commitments have been cited as support for Broadcom’s growth outlook. Anthropic’s S-1 strengthens the case for Broadcom’s AI growth
• Positive Sentiment: Despite Rothschild & Co Redburn’s downgrade, the articles note that Wall Street’s average price target remains around $533, above the firm’s new $398 target. This suggests some analysts still see substantial upside. Is Rothschild & Co Redburn Wrong to Give Up on Broadcom?
• Negative Sentiment: Rothschild & Co Redburn cut AVGO to Neutral from Buy and lowered its price target by 33%, from $595 to $398. It flagged risk from Broadcom’s growing exposure to AI financing arrangements, including reliance on AI companies such as Anthropic and OpenAI that are not yet self-funding. Broadcom stock falls as firm flags AI financing risks

Analysts Set New Price Targets

Several equities analysts have weighed in on the company. Cantor Fitzgerald raised their price objective on Broadcom from $525.00 to $600.00 and gave the company an "overweight" rating in a research note on Thursday, September 3rd. KeyCorp reiterated an "overweight" rating and issued a $575.00 target price on shares of Broadcom in a research note on Thursday, September 3rd. Truist Financial reduced their target price 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. Piper Sandler started coverage on shares of Broadcom in a report on Wednesday, September 9th. They issued an "overweight" rating and a $460.00 target price for the company. Finally, Oppenheimer began coverage on shares of Broadcom in a research report on Tuesday, October 27th. They set a "buy" rating on the stock. One research analyst has rated the stock with a Strong Buy rating, thirty-eight have issued a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $525.19.

Broadcom Stock Performance

Broadcom stock traded down $17.35 during trading on Friday, hitting $347.01. The stock had a trading volume of 31,579,948 shares, compared to its average volume of 26,761,208. Broadcom Inc. has a 1 year low of $289.77 and a 1 year high of $495.00. The company has a quick ratio of 2.29, a current ratio of 2.50 and a debt-to-equity ratio of 0.57. The stock's 50 day moving average is $345.39 and its two-hundred day moving average is $366.55. The stock has a market cap of $1.66 trillion, a price-to-earnings ratio of 44.32 and a beta of 1.49.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.22 by $0.10. Broadcom had a return on equity of 48.33% and a net margin of 42.94%. The business had revenue of $29.59 billion during the quarter, compared to the consensus estimate of $29.24 billion. During the same period last year, the business posted $1.69 earnings per share. The business's revenue for the quarter was up 85.5% on a year-over-year basis. As a group, analysts predict that Broadcom Inc. will post 10.20 EPS for the current year.

Broadcom Announces Dividend

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

Broadcom Profile

Broadcom Inc. is a global technology company that designs and supplies semiconductor products and infrastructure software. Its semiconductor portfolio includes chips and components used in networking, broadband communications, wireless connectivity, data storage, and industrial applications. The company serves businesses across a range of industries, including communications, enterprise technology, and consumer electronics. Broadcom also provides infrastructure software, including products for virtualization, cloud computing, cybersecurity, and enterprise operations.

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