Broadcom Inc. $AVGO Stock: SBI Securities Co. Ltd. Boosts Position

Key Points

• SBI Securities increased its Broadcom position by 10.1% in the third quarter, bringing its holdings to 70,067 shares valued at approximately $24.6 million. Institutional investors and hedge funds collectively own 76.43% of the company.
• Broadcom reported quarterly EPS of $3.32, exceeding estimates of $3.22, while revenue rose 85.5% year over year to $29.59 billion. The company also pays a quarterly dividend of $0.65, representing a 0.8% yield.
• Analysts remain broadly bullish, with Broadcom carrying a “Moderate Buy” consensus rating and an average price target of $529.17. However, supplier diversification by Alphabet and broader concerns about AI spending remain key risks.

SBI Securities Co. Ltd. raised its holdings in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 10.1% during the third quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 70,067 shares of the semiconductor manufacturer's stock after purchasing an additional 6,443 shares during the quarter. SBI Securities Co. Ltd.'s holdings in Broadcom were worth $24,607,000 as of its most recent SEC filing.

Several other large investors have also modified their holdings of the business. Marion Wealth Management grew its holdings in shares of Broadcom by 1.3% during the 3rd quarter. Marion Wealth Management now owns 4,878 shares of the semiconductor manufacturer's stock worth $1,713,000 after purchasing an additional 61 shares during the period. Aire Advisors LLC increased its position in shares of Broadcom by 20.6% during the 3rd quarter. Aire Advisors LLC now owns 2,329 shares of the semiconductor manufacturer's stock worth $818,000 after purchasing an additional 398 shares during the last quarter. Pinnacle Bancorp Inc. increased its position in shares of Broadcom by 5.5% during the 3rd quarter. Pinnacle Bancorp Inc. now owns 3,411 shares of the semiconductor manufacturer's stock worth $1,198,000 after purchasing an additional 177 shares during the last quarter. Cypress Wealth Services LLC raised its holdings in Broadcom by 3.1% in the 3rd quarter. Cypress Wealth Services LLC now owns 13,390 shares of the semiconductor manufacturer's stock valued at $5,032,000 after buying an additional 401 shares during the period. Finally, Woodward Diversified Capital LLC lifted its position in Broadcom by 1.8% in the third quarter. Woodward Diversified Capital LLC now owns 7,615 shares of the semiconductor manufacturer's stock valued at $2,674,000 after buying an additional 131 shares during the last quarter. Institutional investors and hedge funds own 76.43% of the company's stock.

Broadcom Price Performance

AVGO stock opened at $321.68 on Monday. The company has a debt-to-equity ratio of 0.57, a current ratio of 2.50 and a quick ratio of 2.29. The firm has a market capitalization of $1.54 trillion, a P/E ratio of 41.08 and a beta of 1.46. The business's 50-day moving average is $356.05 and its two-hundred day moving average is $384.74. Broadcom Inc. has a 1 year low of $289.96 and a 1 year high of $495.00.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its quarterly earnings data on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.22 by $0.10. Broadcom had a return on equity of 48.33% and a net margin of 42.94%. The business had revenue of $29.59 billion during the quarter, compared to analysts' expectations of $29.24 billion. During the same quarter last year, the business posted $1.69 EPS. The business's quarterly revenue was up 85.5% compared to the same quarter last year. Analysts anticipate that Broadcom Inc. will post 10.37 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

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

Analyst Ratings Changes

A number of equities research analysts have weighed in on the stock. Erste Group Bank reiterated a "hold" rating on shares of Broadcom in a research report on Tuesday, July 7th. Jefferies Financial Group started coverage on shares of Broadcom in a research note on Thursday, September 3rd. They issued a "buy" rating and a $550.00 price target on the stock. Raymond James Financial restated an "outperform" rating and issued a $475.00 price objective (up from $450.00) on shares of Broadcom in a report on Thursday, September 3rd. Citic Securities raised shares of Broadcom to a "buy" rating and increased their price objective for the stock from $450.00 to $525.00 in a research report on Tuesday, September 8th. Finally, Lake Street Capital upgraded shares of Broadcom to a "buy" rating in a report on Thursday, September 3rd. One research analyst has rated the stock with a Strong Buy rating, thirty-eight have assigned a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat.com, Broadcom presently has an average rating of "Moderate Buy" and an average target price of $529.17.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: ETF investors bought approximately $89.8 million of Broadcom shares on October 21, signaling continued institutional demand. Broadcom Sees $89.8 Million in Net ETF Buying
• Positive Sentiment: Analysts continue to highlight Broadcom’s leadership in custom AI accelerators. Demand from major AI labs and hyperscalers, including Anthropic, OpenAI and Meta, supports management’s ambitious long-term AI semiconductor growth outlook. 3 Magnificent AI Chip Stocks
• Positive Sentiment: Tigress Financial initiated coverage with a Buy rating and a $600 price target, implying substantial upside from recent trading levels. Tigress Financial Broadcom Coverage
• Positive Sentiment: Broadcom launched Arcot Scam Defense, a real-time fraud-detection feature for digital payments. Strong initial pilot results could create incremental growth for its software and security businesses. Broadcom Debuts Arcot Scam Defense
• Neutral Sentiment: Broadcom remains the leading custom-chip design partner, but Alphabet is diversifying its TPU suppliers. Although Broadcom may lose market share, the overall AI accelerator market is expected to expand rapidly, potentially offsetting that loss. Broadcom AI Chip Business Risks
• Negative Sentiment: Investors are worried that customer-owned chip design and increased competition from MediaTek could reduce Broadcom’s role and margins in future AI programs. Alphabet’s supplier diversification is the clearest near-term risk. Broadcom AI Chip Business Risks
• Negative Sentiment: The broader market sell-off is weighing on AI stocks amid higher oil prices, inflation concerns and questions about whether massive data-center investments will generate sufficient returns. Technical commentary identifies the $320 area as an important support test. Broadcom Faces Critical $320 Test

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 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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