Broadcom Inc. $AVGO Stock Position Reduced by Convergence Financial LLC

Key Points

• Convergence Financial LLC cut its Broadcom position by 50.1% in the third quarter, selling 23,695 shares and retaining 23,570 shares valued at approximately $8.3 million.
• Broadcom remains heavily supported by institutional investors, who own 76.43% of the stock; major holders including State Street, Bank of America and Wellington increased their stakes.
• The company’s AI growth outlook remains strong, supported by potential Anthropic and Meta demand, but shares trade below recent highs and face valuation, execution and broader semiconductor-demand risks. Analysts maintain a consensus “Moderate Buy” rating.

Convergence Financial LLC reduced its holdings in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 50.1% during the 3rd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 23,570 shares of the semiconductor manufacturer's stock after selling 23,695 shares during the period. Broadcom comprises 1.2% of Convergence Financial LLC's investment portfolio, making the stock its 22nd largest holding. Convergence Financial LLC's holdings in Broadcom were worth $8,277,000 as of its most recent SEC filing.

Other institutional investors also recently bought and sold shares of the company. State Street Corp grew its stake in Broadcom by 8.7% during the 2nd quarter. State Street Corp now owns 208,031,610 shares of the semiconductor manufacturer's stock valued at $75,367,711,000 after purchasing an additional 16,651,378 shares in the last quarter. Bank of America Corp DE boosted its stake in shares of Broadcom by 4.6% during the 2nd quarter. Bank of America Corp DE now owns 61,423,013 shares of the semiconductor manufacturer's stock valued at $23,202,543,000 after buying an additional 2,685,916 shares during the last quarter. Wellington Management Group LLP boosted its stake in shares of Broadcom by 3.8% during the 2nd quarter. Wellington Management Group LLP now owns 51,580,703 shares of the semiconductor manufacturer's stock valued at $19,484,611,000 after buying an additional 1,892,721 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its position in shares of Broadcom by 2.9% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 40,180,530 shares of the semiconductor manufacturer's stock worth $15,178,195,000 after buying an additional 1,140,598 shares in the last quarter. Finally, Legal & General Group Plc acquired a new stake in shares of Broadcom during the second quarter worth approximately $11,998,148,000. 76.43% of the stock is currently owned by hedge funds and other institutional investors.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: DA Davidson upgraded Broadcom to Buy from Neutral and raised its price target to $400 from $350. The firm cited Broadcom’s exposure to major AI customers, including Anthropic and potentially OpenAI. Broadcom Falls Despite DA Davidson Upgrade
• Positive Sentiment: A $63 billion financing arrangement is expected to fund purchases of Broadcom AI hardware for Anthropic. The deal provides a potentially large, funded customer for Broadcom’s custom-chip and networking business, although the company could face substantial obligations under the agreement’s backstop. Broadcom’s $63 Billion Anthropic Deal
• Positive Sentiment: Longer-term investment theses remain favorable: Broadcom projects AI semiconductor revenue of approximately $115 billion in fiscal 2027 and $230 billion in fiscal 2028. Meta’s planned financing for its AI expansion could also support additional demand for Broadcom’s custom silicon and networking products. Meta Financing Plan and Broadcom
• Neutral Sentiment: Broadcom is trading well below its record high and below its 50-day and 200-day moving averages. Analysts see upside, but valuation remains demanding, making execution of the AI growth forecast particularly important.
• Negative Sentiment: Intel’s weaker-than-expected forecast prompted investors to reassess semiconductor demand. Concerns were reinforced by Amazon’s results and the rising cost of building AI infrastructure, pressuring AI-exposed chip stocks broadly. Why Intel, AMD and Broadcom Are Falling
• Negative Sentiment: The Anthropic transaction also carries execution and financial-risk questions. Investors are waiting to see whether Broadcom can manufacture and deliver the required hardware at scale before fully crediting the projected revenue. Broadcom’s Anthropic Deal and Execution Risk

Broadcom Price Performance

AVGO stock opened at $326.08 on Monday. The firm has a market cap of $1.56 trillion, a PE ratio of 41.65 and a beta of 1.49. Broadcom Inc. has a 12 month low of $289.96 and a 12 month high of $495.00. The firm has a 50 day simple moving average of $352.81 and a 200 day simple moving average of $366.96. 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 posted its quarterly earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.22 by $0.10. The company had revenue of $29.59 billion for the quarter, compared to analyst estimates of $29.24 billion. Broadcom had a net margin of 42.94% and a return on equity of 48.33%. The business's quarterly revenue was up 85.5% on a year-over-year basis. During the same period last year, the business posted $1.69 EPS. Equities research analysts forecast that Broadcom Inc. will post 10.37 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

The company 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. This represents a $2.60 annualized dividend and a yield of 0.8%. The ex-dividend date of this dividend was Monday, September 21st. Broadcom's payout ratio is currently 33.21%.

Analyst Ratings Changes

Several analysts recently issued reports on AVGO shares. Fox Advisors raised shares of Broadcom to an "outperform" rating in a report on Thursday, September 3rd. Raymond James Financial reiterated an "outperform" rating and set a $475.00 price objective (up from $450.00) on shares of Broadcom in a research note on Thursday, September 3rd. TD Cowen reissued a "buy" rating and set a $475.00 price objective (down from $500.00) on shares of Broadcom in a report on Thursday, September 3rd. Wedbush started coverage on shares of Broadcom in a research report on Tuesday, October 27th. They issued an "outperform" rating for the company. Finally, Citic Securities upgraded shares of Broadcom to a "buy" rating and upped their target price for the company from $450.00 to $525.00 in a research note on Tuesday, September 8th. One investment 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. According to MarketBeat, Broadcom presently has a consensus rating of "Moderate Buy" and a consensus price target of $530.52.

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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