Broadcom Inc. $AVGO Stock Position Increased by Welch & Forbes LLC

Key Points

• Welch & Forbes increased its Broadcom position by 0.5% in the third quarter, adding 1,465 shares to reach 272,470 shares valued at about $95.7 million. Institutional investors and hedge funds collectively own 76.43% of the stock.
• Broadcom reported quarterly earnings of $3.32 per share, beating estimates by $0.10, while revenue of $29.59 billion exceeded forecasts and rose 85.5% year over year.
• Analysts give Broadcom a “Moderate Buy” consensus rating and an average price target of $530.52, while the article also flags valuation and potential credit risks tied to debt-financed AI infrastructure spending.

Welch & Forbes LLC increased its position in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 0.5% in the 3rd quarter, according to its most recent filing with the SEC. The fund owned 272,470 shares of the semiconductor manufacturer's stock after purchasing an additional 1,465 shares during the period. Broadcom accounts for about 1.1% of Welch & Forbes LLC's holdings, making the stock its 25th biggest holding. Welch & Forbes LLC's holdings in Broadcom were worth $95,689,000 at the end of the most recent reporting period.

Other large investors have also recently made changes to their positions in the company. Legal & General Group Plc purchased a new stake in Broadcom in the second quarter valued at approximately $11,998,148,000. Bank of New York Mellon Corp acquired a new stake in shares of Broadcom in the second quarter valued at approximately $10,528,191,000. Jupiter Topco LLC acquired a new stake in shares of Broadcom in the second quarter valued at approximately $7,396,271,000. State Street Corp boosted its holdings in shares of Broadcom by 8.7% in the second quarter. State Street Corp now owns 208,031,610 shares of the semiconductor manufacturer's stock valued at $75,367,711,000 after acquiring an additional 16,651,378 shares during the period. Finally, Deutsche Bank AG acquired a new stake in shares of Broadcom in the second quarter valued at approximately $5,661,216,000. 76.43% of the stock is owned by institutional investors and hedge funds.

Broadcom Stock Up 4.0%

AVGO opened at $345.22 on Thursday. 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 $345.65 and a two-hundred day moving average price of $366.28. 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 company has a market cap of $1.65 trillion, a PE ratio of 44.09 and a beta of 1.49.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced 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 company had revenue of $29.59 billion for 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 revenue was up 85.5% on a year-over-year basis. During the same period last year, the business posted $1.69 EPS. As a group, research analysts anticipate that Broadcom Inc. will post 10.37 EPS for the current year.

Broadcom Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Monday, September 21st were issued a dividend of $0.65 per share. The ex-dividend date of this dividend was Monday, September 21st. This represents a $2.60 annualized dividend and a dividend yield of 0.8%. Broadcom's dividend payout ratio (DPR) is currently 33.21%.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on AVGO shares. Weiss Ratings upgraded shares of Broadcom from a "buy (b-)" rating to a "buy (b)" rating in a research report on Thursday, October 8th. BNP Paribas Exane upped their price target on shares of Broadcom from $675.00 to $715.00 and gave the company an "outperform" rating in a research report on Friday, September 4th. Morgan Stanley reiterated an "overweight" rating and set a $505.00 price target (up from $502.00) on shares of Broadcom in a research note on Thursday, September 3rd. BMO Capital Markets increased their price target on shares of Broadcom from $455.00 to $575.00 and gave the stock an "outperform" rating in a research note on Thursday, September 3rd. Finally, Bank of America lowered their price objective on shares of Broadcom from $530.00 to $460.00 and set a "buy" rating on the stock in a research report on Thursday, September 3rd. 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's stock. According to data from MarketBeat, Broadcom currently has an average rating of "Moderate Buy" and an average target price of $530.52.

Key Stories Impacting Broadcom

Investors following AVGO have been watching these stories:

• Positive Sentiment: Analysts say Google’s latest TPU developments reinforce Broadcom’s central role in custom AI chips, supporting expectations for ongoing demand from major technology customers. Google's latest TPUs show Broadcom remains central: JPM
• Positive Sentiment: Coverage of Anthropic points to substantial cash and rising revenue as support for its large commitment involving Broadcom, bolstering confidence in the AI partnership and related chip demand. Anthropic's S-1 Strengthens the Case for Broadcom's AI Growth
• Negative Sentiment: Risks include Broadcom’s valuation and the possibility that debt-financed AI infrastructure spending could expose the company to credit risk if demand or customer finances weaken. Broadcom: A Great TPU Business With a New Kind of Credit Risk Attached

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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