Broadcom Inc. $AVGO Stock Purchased by Central Bank & Trust Co.

Key Points

• Central Bank & Trust Co. increased its Broadcom stake by 11.6% in the third quarter, bringing its holdings to 16,261 shares valued at approximately $5.7 million. Institutional investors and hedge funds collectively own 76.43% of Broadcom.
• Broadcom reported strong quarterly results, with revenue up 85.5% year over year to $29.59 billion and earnings of $3.32 per share, exceeding analyst expectations. The company also pays a quarterly dividend of $0.65 per share.
• AI-related demand remains the main growth catalyst: Broadcom is reportedly exploring more than $50 billion in financing for custom AI chips with OpenAI and continues developing networking technologies for large-scale AI infrastructure. Analysts maintain a “Moderate Buy” consensus with an average price target of $527.20.

Central Bank & Trust Co. boosted its holdings in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 11.6% during the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 16,261 shares of the semiconductor manufacturer's stock after buying an additional 1,686 shares during the period. Broadcom makes up about 0.9% of Central Bank & Trust Co.'s portfolio, making the stock its 28th largest position. Central Bank & Trust Co.'s holdings in Broadcom were worth $5,711,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently made changes to their positions in the business. Brown Shipley& Co Ltd boosted its stake in Broadcom by 41.0% in the third quarter. Brown Shipley& Co Ltd now owns 15,611 shares of the semiconductor manufacturer's stock valued at $5,482,000 after acquiring an additional 4,543 shares during the last quarter. Lawood & Co. lifted its holdings in Broadcom by 1.3% during the 3rd quarter. Lawood & Co. now owns 5,152 shares of the semiconductor manufacturer's stock worth $1,809,000 after purchasing an additional 68 shares in the last quarter. Douglas Lane & Associates LLC grew its holdings in Broadcom by 47.4% during the 3rd quarter. Douglas Lane & Associates LLC now owns 5,768 shares of the semiconductor manufacturer's stock valued at $2,026,000 after buying an additional 1,856 shares in the last quarter. Dakota Community Bank & Trust NA boosted its position in shares of Broadcom by 14.2% in the third quarter. Dakota Community Bank & Trust NA now owns 2,807 shares of the semiconductor manufacturer's stock valued at $986,000 after acquiring an additional 348 shares during the period. Finally, Aventus Investment Advisors Inc. lifted its stake in Broadcom by 4.9% in the 3rd quarter. Aventus Investment Advisors Inc. now owns 4,464 shares of the semiconductor manufacturer's stock worth $1,568,000 after purchasing an additional 208 shares in the last quarter. Institutional investors and hedge funds own 76.43% of the company's stock.

Key Headlines Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom is reportedly arranging more than $50 billion in financing for custom AI chips being developed with OpenAI. Although discussions are preliminary, the potential project underscores the scale of expected demand for Broadcom’s custom silicon and could support substantial future revenue. Broadcom seeks more than $50 billion to finance OpenAI AI chips
• Positive Sentiment: At the OCP Global Summit, Broadcom highlighted new networking technologies designed to help hyperscalers scale AI clusters. The announcements reinforce its positioning in high-speed networking and custom AI infrastructure. Broadcom AI networking innovations
• Positive Sentiment: Record profits at Samsung and TSMC are being viewed as evidence that semiconductor demand and AI-related capital spending remain strong, a favorable backdrop for Broadcom’s chip and networking businesses. Record profits at Samsung and TSMC
• Positive Sentiment: Analysts and commentators continue to point to Broadcom’s rapid AI revenue growth and its roughly 24% decline from its 52-week high as a potential entry point, despite expectations for strong earnings growth. Broadcom is lagging the market

Broadcom Price Performance

Shares of AVGO opened at $361.54 on Friday. Broadcom Inc. has a fifty-two week low of $289.96 and a fifty-two week high of $495.00. The firm's 50-day simple moving average is $371.24 and its two-hundred day simple moving average is $382.38. The stock has a market cap of $1.73 trillion, a PE ratio of 46.17 and a beta of 1.46. The company has a debt-to-equity ratio of 0.57, a quick ratio of 2.29 and a current ratio of 2.50.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its quarterly 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 firm had revenue of $29.59 billion during 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 company earned $1.69 earnings per share. Analysts anticipate that Broadcom Inc. will post 10.37 earnings per share for the current fiscal 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 issued a dividend of $0.65 per share. This represents a $2.60 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend was Monday, September 21st. Broadcom's dividend payout ratio is presently 33.21%.

Wall Street Analysts Forecast Growth

AVGO has been the topic of a number of research analyst reports. Weiss Ratings upgraded Broadcom from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday. HSBC dropped their target price on Broadcom from $600.00 to $560.00 and set a "buy" rating for the company in a research report on Thursday, September 3rd. BMO Capital Markets boosted their price objective on shares of Broadcom from $455.00 to $575.00 and gave the stock an "outperform" rating in a report on Thursday, September 3rd. Evercore set a $578.00 target price on shares of Broadcom and gave the stock an "outperform" rating in a research report on Thursday, September 3rd. Finally, Jefferies Financial Group assumed coverage on Broadcom in a report on Thursday, September 3rd. They set a "buy" rating and a $550.00 target price for the company. One research analyst has rated the stock with a Strong Buy rating, thirty-seven have issued a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $527.20.

About Broadcom

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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