Broadcom Inc. $AVGO Stock Sold by Columbus Macro LLC

Key Points

• Columbus Macro LLC reduced its Broadcom stake by 8.8% in the third quarter, selling 2,638 shares and retaining 27,197 shares valued at $9.55 million. Institutional investors collectively own 76.43% of Broadcom.
• Broadcom reported strong quarterly results, with earnings of $3.32 per share and revenue of $29.59 billion, up 85.5% year over year. The company also maintains a quarterly dividend of $0.65, equivalent to a 0.8% annual yield.
• AI remains the central growth opportunity, driven by custom accelerators and planned AI networking products, but investor concerns include valuation, potential customer spending slowdowns, leverage tied to a possible $50 billion debt deal, and continued technical pressure in the stock.

Columbus Macro LLC lessened its stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 8.8% in the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 27,197 shares of the semiconductor manufacturer's stock after selling 2,638 shares during the period. Columbus Macro LLC's holdings in Broadcom were worth $9,551,000 at the end of the most recent reporting period.

A number of other institutional investors have also recently made changes to their positions in the stock. Legal & General Group Plc purchased a new position in Broadcom in the second quarter worth $11,998,148,000. Bank of New York Mellon Corp bought a new position in Broadcom in the second quarter valued at $10,528,191,000. Jupiter Topco LLC bought a new position in Broadcom in the second quarter valued at $7,396,271,000. State Street Corp raised its position in Broadcom by 8.7% during 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. Finally, Deutsche Bank AG purchased a new stake in Broadcom during the second quarter valued at about $5,661,216,000. Institutional investors own 76.43% of the company's stock.

Broadcom Trading Down 3.1%

NASDAQ AVGO opened at $346.25 on Thursday. Broadcom Inc. has a 1-year low of $289.96 and a 1-year high of $495.00. 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 stock has a 50-day moving average of $367.83 and a 200-day moving average of $383.58. The firm has a market cap of $1.65 trillion, a PE ratio of 41.69 and a beta of 1.46.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued 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. Broadcom had a return on equity of 48.33% and a net margin of 42.94%. The company had revenue of $29.59 billion during the quarter, compared to analysts' expectations of $29.24 billion. During the same period in the prior year, the business posted $1.69 EPS. Broadcom's quarterly revenue was up 85.5% compared to the same quarter last year. As a group, sell-side analysts forecast that Broadcom Inc. will post 10.37 EPS for the current year.

Broadcom Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Monday, September 21st were given a $0.65 dividend. The ex-dividend date was Monday, September 21st. This represents a $2.60 annualized dividend and a yield of 0.8%. Broadcom's payout ratio is presently 33.21%.

Key Stories Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s custom AI accelerator business remains a major growth driver. The company is reportedly booking orders well into 2028 as large technology customers shift toward internally designed chips, potentially benefiting Broadcom as AI spending expands beyond Nvidia. One Stock Could Benefit as AI Spending Moves Beyond Nvidia
• Positive Sentiment: Analysts continue to raise expectations: Erste Group lifted its fiscal 2027 EPS forecast to $17.59 from $17.54, while other coverage highlights Broadcom’s strong free cash flow, high-margin semiconductor and infrastructure-software businesses, and substantial AI-chip revenue.
• Positive Sentiment: Broadcom is preparing to launch an AI networking platform at the OCP Global Summit, supporting the view that its opportunity extends beyond accelerators into the networking infrastructure needed for AI data centers. Broadcom To Launch AI Networking Platform
• Positive Sentiment: The introduction of VMware HyperArmor adds a new security product for VMware Cloud Foundation and could strengthen Broadcom’s infrastructure-software portfolio. Broadcom Introduces VMware HyperArmor
• Neutral Sentiment: Several analyses describe a disconnect between Broadcom’s rapidly growing revenue and weaker stock performance. The company is viewed as a potentially steadier long-term AI investment than more concentrated semiconductor peers, but investors remain divided over whether current growth is sufficiently reflected in its valuation.
• Negative Sentiment: CEO Hock Tan warned that AI investment has a “casino” element and faces a capital hurdle. Those comments have heightened concerns that data-center customers could eventually slow spending or struggle to earn adequate returns, even as Broadcom raises AI expectations.
• Negative Sentiment: Reports discussing a possible $50 billion debt deal have raised questions about leverage and financing risk. Meanwhile, AVGO remains well below its 52-week high and below its 50-day and 200-day moving averages, indicating continuing technical pressure and investor profit-taking.

Wall Street Analyst Weigh In

AVGO has been the topic of several recent research reports. Evercore set a $578.00 price objective on Broadcom and gave the company an "outperform" rating in a research report on Thursday, September 3rd. TD Cowen reaffirmed a "buy" rating and issued a $475.00 target price (down from $500.00) on shares of Broadcom in a research note on Thursday, September 3rd. DA Davidson set a $350.00 price target on shares of Broadcom and gave the company a "neutral" rating in a research report on Friday, September 4th. Rosenblatt Securities started coverage on shares of Broadcom in a research note on Thursday, September 3rd. They set a "buy" rating and a $600.00 price target on the stock. Finally, Weiss Ratings raised shares of Broadcom from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, October 8th. One investment analyst has rated the stock with a Strong Buy rating, thirty-seven have given a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target 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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