Broadcom Inc. $AVGO Stock Sold by Candriam S.C.A.

Key Points

• Candriam S.C.A. reduced its Broadcom stake by 3% in the third quarter, selling 51,468 shares; it still held 1.64 million shares worth about $578.5 million.
• Institutional ownership remains substantial at 76.43%. Several large investors, including State Street and Bank of America, increased their holdings.
• Broadcom beat quarterly earnings and revenue expectations, with revenue up 85.5% year over year. Analysts’ consensus rating was “Moderate Buy,” with an average price target of $530.52.

Candriam S.C.A. cut its holdings in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 3.0% during the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,641,270 shares of the semiconductor manufacturer's stock after selling 51,468 shares during the period. Broadcom comprises about 2.6% of Candriam S.C.A.'s holdings, making the stock its 6th largest position. Candriam S.C.A.'s holdings in Broadcom were worth $578,504,000 at the end of the most recent quarter.

A number of other institutional investors also recently bought and sold shares of the business. State Street Corp boosted its holdings in 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 purchasing an additional 16,651,378 shares in the last quarter. Bank of America Corp DE increased its stake in Broadcom by 4.6% in the second 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 purchasing an additional 2,685,916 shares during the last quarter. Wellington Management Group LLP raised its holdings in Broadcom by 3.8% during the second quarter. Wellington Management Group LLP now owns 51,580,703 shares of the semiconductor manufacturer's stock worth $19,484,611,000 after purchasing an additional 1,892,721 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in 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 purchasing an additional 1,140,598 shares in the last quarter. Finally, Legal & General Group Plc acquired a new stake in Broadcom during the second quarter worth approximately $11,998,148,000. 76.43% of the stock is owned by hedge funds and other institutional investors.

Broadcom Price Performance

Shares of NASDAQ AVGO opened at $331.98 on Wednesday. The company has a current ratio of 2.50, a quick ratio of 2.29 and a debt-to-equity ratio of 0.57. The company's 50-day moving average price is $346.14 and its 200 day moving average price is $366.16. Broadcom Inc. has a 52 week low of $289.77 and a 52 week high of $495.00. The stock has a market cap of $1.58 trillion, a price-to-earnings ratio of 42.40 and a beta of 1.49.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its quarterly earnings data 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. Broadcom had a return on equity of 48.33% and a net margin of 42.94%. The firm had revenue of $29.59 billion during the quarter, compared to the consensus estimate of $29.24 billion. During the same period in the previous year, the firm posted $1.69 EPS. The company's quarterly revenue was up 85.5% compared to the same quarter last year. As a group, research analysts forecast that Broadcom Inc. will post 10.37 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Monday, September 21st were given 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 yield of 0.8%. Broadcom's dividend payout ratio (DPR) is presently 33.21%.

Key Headlines Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Anthropic’s S-1 filing reportedly shows surging revenue and $131.8 billion in cash, strengthening confidence in its ability to support a large commitment to Broadcom. Broadcom’s connection to a $26 billion Anthropic placement also underscores its role in the AI supply chain. Anthropic's S-1 Strengthens the Case for Broadcom's AI Growth
• Positive Sentiment: Google’s projected $135 billion chip spending could benefit Broadcom’s custom-chip business, as large technology companies look beyond GPUs to develop their own AI processors. The Real Winner of Google’s $135 Billion Chip Forecast: Broadcom
• Positive Sentiment: Analysts point to Broadcom’s history of earnings surprises and factors they believe could support another quarterly beat. The next results are scheduled for December 9, making the report a near-term test of AI demand and investor expectations. Will Broadcom Beat Estimates Again?
• Neutral Sentiment: Broadcom contributed its VM API project to the Cloud Native Computing Foundation’s Sandbox and is working on Kubernetes workload standards. This may strengthen VMware’s ecosystem and partner support, though the near-term financial impact is uncertain. Broadcom Contributes VM API Open Source Project to CNCF
• Negative Sentiment: Despite the rebound, investor concerns persist over margin pressure and a reported $63 billion financing structure. Broader worries about data-center investment, AI regulation and higher interest rates could also weigh on sentiment toward semiconductor stocks. Broadcom’s Margin and Financing Concerns

Analysts Set New Price Targets

AVGO has been the subject of several research analyst reports. BMO Capital Markets upped their target price on shares of Broadcom from $455.00 to $575.00 and gave the company an "outperform" rating in a report on Thursday, September 3rd. JPMorgan Chase & Co. reiterated a "buy" rating on shares of Broadcom in a research note on Thursday, September 3rd. UBS Group cut shares of Broadcom from a "hold" rating to a "neutral" rating in a research report on Tuesday, October 27th. Arete Research upped their price objective on shares of Broadcom from $488.00 to $530.00 and gave the company a "buy" rating in a research note on Tuesday, July 21st. Finally, Lake Street Capital raised Broadcom to a "buy" rating in a research report on Thursday, September 3rd. One research analyst has rated the stock with a Strong Buy rating, thirty-nine have assigned a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, Broadcom currently has a consensus rating of "Moderate Buy" and a consensus target price of $530.52.

Broadcom Company 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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