Broadcom Inc. $AVGO Stock Sold by Americana Partners LLC

Key Points

• Americana Partners cut its Broadcom stake by 3.7% in the third quarter, selling 9,714 shares; it still held 250,051 shares worth about $87.8 million.
• Broadcom reported quarterly EPS of $3.32, above the $3.22 consensus, and revenue of $29.59 billion, up 85.5% year over year.
• Investor interest is supported by optimism about AI-chip growth, but commentary flags potential supply bottlenecks and a high valuation as risks.

Americana Partners LLC trimmed its holdings in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 3.7% in the third quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 250,051 shares of the semiconductor manufacturer's stock after selling 9,714 shares during the period. Broadcom comprises approximately 1.9% of Americana Partners LLC's investment portfolio, making the stock its 6th biggest position. Americana Partners LLC's holdings in Broadcom were worth $87,816,000 as of its most recent SEC filing.

Several other hedge funds have also recently added to or reduced their stakes in AVGO. Core Capital Management & Research inc. purchased a new position in shares of Broadcom during the second quarter valued at $31,000. DecisionPoint Financial LLC lifted its stake in Broadcom by 101.9% in the 3rd quarter. DecisionPoint Financial LLC now owns 105 shares of the semiconductor manufacturer's stock worth $36,000 after acquiring an additional 53 shares in the last quarter. Harborfront Financial Group LLC purchased a new stake in Broadcom in the 2nd quarter worth about $38,000. Align Financial LLC boosted its position in Broadcom by 67.2% during the 3rd quarter. Align Financial LLC now owns 112 shares of the semiconductor manufacturer's stock worth $38,000 after acquiring an additional 45 shares during the period. Finally, Curry Webb Wealth Management LLC purchased a new position in Broadcom during the 3rd quarter valued at about $41,000. Institutional investors and hedge funds own 76.43% of the company's stock.

Broadcom News Summary

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom gained alongside other chipmakers as investors continued to favor AI-related stocks. One report says the company’s AI-chip revenue is tripling year over year, reinforcing expectations for continued growth. NVIDIA, AMD and Broadcom stock performance Broadcom's AI growth outlook
• Positive Sentiment: Investor interest is also reflected in ETF activity: 48 funds bought Broadcom shares on Friday, while 30 sold, for reported net purchases of $183.8 million. ETF purchases of Broadcom shares
• Positive Sentiment: Several investment articles highlight Broadcom’s long-term AI opportunity, including its custom-chip and XPU businesses, and name it among favored technology stocks for the coming years. These are analyst and investor opinions, not new company guidance. Broadcom among top technology stocks AI growth stock picks
• Neutral Sentiment: One bullish investor argues that supply bottlenecks, rather than weak demand, are holding back Broadcom—suggesting demand remains strong but fulfillment constraints may delay revenue. Broadcom supply bottlenecks
• Negative Sentiment: Valuation is a counterpoint: some commentary considers the shares expensive despite the company’s growth prospects. Broadcom’s custom-chip opportunity also depends on customers continuing to develop their own processors, unlike TSMC, which serves multiple chip designers. Broadcom valuation concerns Taiwan Semiconductor versus Broadcom

Broadcom Trading Up 3.1%

Shares of AVGO stock opened at $332.13 on Wednesday. The firm has a market capitalization of $1.59 trillion, a P/E ratio of 37.60 and a beta of 1.49. Broadcom Inc. has a 1 year low of $289.96 and a 1 year high of $495.00. The firm's fifty day simple moving average is $351.35 and its 200 day simple moving average is $366.76. The company has a current ratio of 2.50, a quick ratio of 2.29 and a debt-to-equity ratio of 0.57.

Broadcom (NASDAQ:AVGO - Get Free Report) last released 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 business had revenue of $29.59 billion during the quarter, compared to analysts' expectations of $29.24 billion. Broadcom had a net margin of 42.94% and a return on equity of 48.33%. The firm's revenue was up 85.5% on a year-over-year basis. During the same quarter last year, the company earned $1.69 earnings per share. As a group, sell-side analysts predict that Broadcom Inc. will post 10.37 EPS for the current year.

Broadcom Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders 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 dividend yield of 0.8%. Broadcom's dividend payout ratio is presently 33.21%.

Analysts Set New Price Targets

AVGO has been the subject of a number of recent research reports. Fox Advisors raised Broadcom to an "outperform" rating in a research note on Thursday, September 3rd. Jefferies Financial Group assumed coverage on shares of Broadcom in a research note on Thursday, September 3rd. They issued a "buy" rating and a $550.00 target price for the company. Oppenheimer began coverage on shares of Broadcom in a research note on Tuesday, October 27th. They set a "buy" rating on the stock. Bank of America cut their price target on shares of Broadcom from $530.00 to $460.00 and set a "buy" rating on the stock in a report on Thursday, September 3rd. Finally, Piper Sandler started coverage on shares of Broadcom in a report on Wednesday, September 9th. They issued an "overweight" rating and a $460.00 price objective for the company. One equities research analyst has rated the stock with a Strong Buy rating, thirty-nine have given a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $530.52.

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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