Broadcom Inc. $AVGO Stock Position Cut by Inscription Capital LLC

Key Points

• Inscription Capital cut its Broadcom stake by 42.5% in the third quarter, selling 6,099 shares and retaining 8,241 shares valued at about $2.9 million.
• Analyst views were mixed: Citigroup and William Blair downgraded the stock, while other firms raised price targets. Broadcom’s consensus rating remained “Moderate Buy,” with an average target of $530.52.
• Broadcom reported quarterly results above expectations, with EPS of $3.32 and revenue of $29.59 billion; revenue rose 85.5% year over year.

Inscription Capital LLC lowered its holdings in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 42.5% in the 3rd quarter, according to its most recent disclosure with the SEC. The fund owned 8,241 shares of the semiconductor manufacturer's stock after selling 6,099 shares during the period. Inscription Capital LLC's holdings in Broadcom were worth $2,894,000 as of its most recent SEC filing.

Other large investors have also recently modified their holdings of the company. Core Capital Management & Research inc. bought a new position in Broadcom during the 2nd quarter worth $31,000. Harborfront Financial Group LLC acquired a new position in Broadcom during the 2nd quarter worth about $38,000. DecisionPoint Financial LLC lifted its holdings in Broadcom by 101.9% during the 3rd quarter. DecisionPoint Financial LLC now owns 105 shares of the semiconductor manufacturer's stock worth $36,000 after buying an additional 53 shares during the period. Align Financial LLC grew its position in shares of 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 bought a new stake in shares of Broadcom in the 3rd quarter valued at about $41,000. Institutional investors own 76.43% of the company's stock.

Analyst Ratings Changes

Several brokerages have recently weighed in on AVGO. Citigroup cut Broadcom from a "buy" rating to a "neutral" rating in a research note on Tuesday, October 27th. BMO Capital Markets lifted their price objective on Broadcom from $455.00 to $575.00 and gave the stock an "outperform" rating in a research note on Thursday, September 3rd. Morgan Stanley reiterated an "overweight" rating and issued a $505.00 target price (up from $502.00) on shares of Broadcom in a report on Thursday, September 3rd. William Blair downgraded shares of Broadcom from an "outperform" rating to a "market perform" rating in a research report on Tuesday, October 27th. Finally, The Goldman Sachs Group increased their target price on shares of Broadcom from $525.00 to $540.00 and gave the company a "buy" rating in a research report on Thursday, September 3rd. One equities research analyst has rated the stock with a Strong Buy rating, thirty-nine have assigned a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, Broadcom currently has an average rating of "Moderate Buy" and a consensus price target of $530.52.

Trending Headlines about Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s AI semiconductor revenue is surging, and management sees significant growth potential over the next several years. One analysis argues that the market may not yet reflect that opportunity; another estimates the shares could be undervalued. Prediction: November Will Be a Huge Month for Broadcom Broadcom Stock Could Be 37% Undervalued
• Neutral Sentiment: Some coverage frames the recent pullback as a potential turning point, with a widening gap between AI business growth and the share-price trend. Whether fundamentals prompt a recovery remains uncertain. Broadcom Stock Could Be Approaching a Major Turning Point
• Negative Sentiment: Near-term risks include the broad AI-chip selloff and worries that higher interest rates could curb AI spending. Potential limits on new data-center permits in some states add uncertainty about future infrastructure buildouts. Broadcom’s AI Revenue Is Exploding. Here’s What Investors Should Watch Next. Broadcom Drops Amid Broad Chip Selloff
• Negative Sentiment: Investor positioning has also weighed on sentiment: ARK sold a large Broadcom holding during the selloff while buying Nvidia. Broadcom is still down sharply over the past month, despite the recent lift. ARK Buys Nvidia and Sells Broadcom Broadcom Is Still Down 22% in the Past Month

Broadcom Stock Performance

NASDAQ AVGO opened at $293.69 on Monday. The company has a quick ratio of 2.29, a current ratio of 2.50 and a debt-to-equity ratio of 0.57. Broadcom Inc. has a 52 week low of $289.77 and a 52 week high of $495.00. The business has a 50 day moving average price of $347.89 and a 200-day moving average price of $366.17. The company has a market cap of $1.40 trillion, a price-to-earnings ratio of 37.51 and a beta of 1.49.

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, 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 company had revenue of $29.59 billion for the quarter, compared to analysts' expectations of $29.24 billion. During the same period last year, the business earned $1.69 EPS. Broadcom's quarterly revenue was up 85.5% compared to the same quarter last year. As a group, equities analysts expect 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. Shareholders of record on Monday, September 21st were issued a dividend of $0.65 per share. The ex-dividend date was Monday, September 21st. This represents a $2.60 annualized dividend and a yield of 0.9%. Broadcom's dividend payout ratio is presently 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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