Broadcom Inc. $AVGO Stock: Perpetual Ltd Lowers Holdings

Key Points

• Perpetual Ltd. reduced its Broadcom stake by 1.8% in the third quarter, selling 3,246 shares and retaining 175,326 shares valued at approximately $61.6 million. Broadcom still represents about 1% of the firm’s portfolio.
• Broadcom recently beat quarterly earnings and revenue expectations, reporting $3.32 in EPS and $29.59 billion in revenue, with revenue up 85.5% year over year. The company also paid a quarterly dividend of $0.65, or $2.60 annualized.
• Analyst sentiment remains positive, with a consensus “Moderate Buy” rating and an average price target of $527.20 versus the stock’s reported price of $354.73. Investors continue to focus on Broadcom’s AI growth prospects while monitoring capital constraints, financing commitments and valuation risks.

Perpetual Ltd cut its stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 1.8% during the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 175,326 shares of the semiconductor manufacturer's stock after selling 3,246 shares during the quarter. Broadcom comprises about 1.0% of Perpetual Ltd's investment portfolio, making the stock its 28th biggest position. Perpetual Ltd's holdings in Broadcom were worth $61,573,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds also recently added to or reduced their stakes in the stock. Networth Advisors LLC grew its stake in shares of Broadcom by 546.2% in the first quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer's stock valued at $26,000 after buying an additional 71 shares in the last quarter. Core Capital Management & Research inc. purchased a new stake in shares of Broadcom during the 2nd quarter valued at about $31,000. Harborfront Financial Group LLC purchased a new stake in shares of Broadcom during the 2nd quarter valued at about $38,000. Coppell Advisory Solutions LLC acquired a new stake in Broadcom in the second quarter valued at approximately $60,000. Finally, IMG Wealth Management Inc. acquired a new stake in Broadcom in the second quarter valued at approximately $64,000. 76.43% of the stock is owned by hedge funds and other institutional investors.

Broadcom Price Performance

Shares of AVGO stock opened at $354.73 on Tuesday. The firm has a fifty day moving average of $370.49 and a two-hundred day moving average of $383.05. The firm has a market cap of $1.69 trillion, a P/E ratio of 45.30 and a beta of 1.46. Broadcom Inc. has a 1-year low of $289.96 and a 1-year high of $495.00. The company has a debt-to-equity ratio of 0.57, a current ratio of 2.50 and a quick ratio of 2.29.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.22 by $0.10. Broadcom had a net margin of 42.94% and a return on equity of 48.33%. The business had revenue of $29.59 billion for the quarter, compared to analyst estimates of $29.24 billion. During the same quarter in the prior year, the business posted $1.69 EPS. The company's revenue for the quarter was up 85.5% on a year-over-year basis. As a group, research analysts anticipate that Broadcom Inc. will post 10.37 earnings per share for the current fiscal year.

Broadcom Announces Dividend

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

Key Stories Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s AI business remains a key bullish argument. Unlike Nvidia, the company focuses on custom AI accelerators, networking and connectivity rather than general-market GPUs, with reports citing multiyear hyperscaler contracts and rapidly growing AI revenue. Broadcom Is Building an AI Business Unlike Nvidia's Broadcom’s AI Revenue Is Tripling
• Positive Sentiment: Broadcom is also highlighted as an AI-exposure stock that pays a dividend, potentially appealing to investors seeking both participation in data-center expansion and shareholder income. 3 Dividend Paying Stocks Offering AI Exposure
• Neutral Sentiment: Analysts and investors continue to closely monitor AVGO because of its AI exposure, but current coverage largely reiterates existing growth expectations rather than introducing a major new catalyst. What to Know Beyond Why Broadcom Is a Trending Stock
• Negative Sentiment: Broadcom CEO Hock Tan warned that access to capital—not memory chips—could become the biggest bottleneck for the AI buildout. Higher financing costs or limited funding could slow hyperscaler data-center spending and reduce demand visibility across the sector. Capital Crunch Could Become AI’s Biggest Bottleneck
• Negative Sentiment: The broader AI selloff following concerns about OpenAI’s lower-than-reported annualized revenue also weighed on Broadcom, reinforcing fears that AI spending and valuations may be ahead of near-term fundamentals. Nvidia vs. Broadcom After the OpenAI Scare
• Negative Sentiment: Commentary on Broadcom’s large financing commitments, including a reported $42 billion arrangement tied to Anthropic, has raised questions about leverage, customer concentration and dependence on a successful future AI IPO. Broadcom’s $42 Billion Loan to Anthropic

Analysts Set New Price Targets

A number of analysts have recently issued reports on AVGO shares. Lake Street Capital upgraded shares of Broadcom to a "buy" rating in a research note on Thursday, September 3rd. President Capital upped their target price on shares of Broadcom from $520.00 to $546.00 and gave the company a "buy" rating in a research note on Thursday, September 3rd. Piper Sandler assumed coverage on shares of Broadcom in a report on Wednesday, September 9th. They set an "overweight" rating and a $460.00 price target for the company. BNP Paribas Exane lifted their price target on shares of Broadcom from $675.00 to $715.00 and gave the stock an "outperform" rating in a research note on Friday, September 4th. Finally, HSBC dropped their price target on shares of Broadcom from $600.00 to $560.00 and set a "buy" rating on the stock in a research note on Thursday, September 3rd. One equities research analyst has rated the stock with a Strong Buy rating, thirty-seven have assigned a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $527.20.

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 wired and wireless communications, data center networking, broadband access, storage, industrial applications, and other markets.

The company's semiconductor portfolio includes networking and switching products, custom application-specific integrated circuits, wireless connectivity components, radio-frequency devices, optical components, and storage-related solutions.

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