Broadcom Inc. $AVGO Stock Sold by Nippon Life Global Investors Americas Inc.

Key Points

• Nippon Life Global Investors Americas cut its Broadcom stake by 20% in the third quarter, selling 47,760 shares. It retained 191,590 shares, worth about $67.3 million at quarter-end, making Broadcom its eighth-largest holding.
• Analyst sentiment remained broadly positive: Broadcom had a “Moderate Buy” consensus from 45 analysts, with an average price target of $530.52.
• Broadcom reported quarterly EPS of $3.32, above the $3.22 consensus, and revenue of $29.59 billion, up 85.5% year over year.

Nippon Life Global Investors Americas Inc. lowered its position in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 20.0% in the 3rd quarter, according to the company in its most recent filing with the SEC. The fund owned 191,590 shares of the semiconductor manufacturer's stock after selling 47,760 shares during the quarter. Broadcom comprises 2.7% of Nippon Life Global Investors Americas Inc.'s investment portfolio, making the stock its 8th largest holding. Nippon Life Global Investors Americas Inc.'s holdings in Broadcom were worth $67,284,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Legal & General Group Plc purchased a new position in shares of Broadcom during the second quarter worth about $11,998,148,000. Bank of New York Mellon Corp purchased a new stake in Broadcom in the second quarter worth approximately $10,528,191,000. Jupiter Topco LLC bought a new stake in shares of Broadcom in the 2nd quarter worth approximately $7,396,271,000. State Street Corp raised its position in Broadcom by 8.7% in the 2nd quarter. State Street Corp now owns 208,031,610 shares of the semiconductor manufacturer's stock worth $75,367,711,000 after purchasing an additional 16,651,378 shares during the period. Finally, Deutsche Bank AG purchased a new stake in Broadcom during the second quarter valued at about $5,661,216,000. 76.43% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

AVGO has been the topic of a number of recent analyst reports. Citic Securities raised shares of Broadcom to a "buy" rating and raised their price target for the stock from $450.00 to $525.00 in a report on Tuesday, September 8th. Wall Street Zen downgraded Broadcom from a "strong-buy" rating to a "buy" rating in a research note on Saturday, July 18th. BNP Paribas Exane raised their target price on Broadcom from $675.00 to $715.00 and gave the stock an "outperform" rating in a research report on Friday, September 4th. Arete Research increased their target price on shares of Broadcom from $488.00 to $530.00 and gave the stock a "buy" rating in a report on Tuesday, July 21st. Finally, HSBC dropped their price target on Broadcom from $600.00 to $560.00 and set a "buy" rating for the company in a research report on Thursday, September 3rd. One analyst has rated the stock with a Strong Buy rating, thirty-nine have issued a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $530.52.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s AI semiconductor revenue reached $16.7 billion, exceeding its $16 billion target, and management expects higher AI revenue next quarter. That supports the view that demand for its custom AI chips remains strong despite competition from Marvell. Article: Is Broadcom Stock a Buy Now?
• Positive Sentiment: ETFs purchased $267.7 million of Broadcom shares on Nov. 2, a sign of institutional demand, though fund flows can be short-lived and do not guarantee further gains. Article: 53 ETFs Add to Broadcom Holdings
• Neutral Sentiment: A report tied midterm-election results and a potential Texas permit freeze to concerns about AI data-center investment. The article does not establish a direct effect on Broadcom, but any broader slowdown in data-center construction could weigh on AI infrastructure suppliers. Article: Steve Weiss Says the Midterms Just Put a Lid on AI Spending
• Negative Sentiment: Broadcom underperformed in a rising market. Coverage describing the session offered no specific explanation, leaving the decline potentially tied to market sentiment or profit-taking rather than a disclosed change in the company’s outlook. Article: Broadcom Stock Slides as Market Rises
• Negative Sentiment: Some commentary flags valuation as a risk, while Broadcom’s custom-chip opportunity depends on customers continuing to develop their own processors. That leaves the stock vulnerable if growth expectations cool or customer plans change. Article: Taiwan Semi or Broadcom

Broadcom Stock Down 2.0%

AVGO stock opened at $325.60 on Thursday. Broadcom Inc. has a 52 week low of $289.96 and a 52 week high of $495.00. The stock has a market capitalization of $1.55 trillion, a P/E ratio of 41.58 and a beta of 1.49. The firm has a 50-day simple moving average of $350.73 and a 200-day simple moving average of $366.67. The company has a quick ratio of 2.29, a current ratio of 2.50 and a debt-to-equity ratio of 0.57.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its quarterly earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 analyst estimates of $29.24 billion. During the same period in the prior year, the business earned $1.69 earnings per share. The business's revenue was up 85.5% compared to the same quarter last year. Equities analysts forecast that Broadcom Inc. will post 10.37 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

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 $0.65 dividend. The ex-dividend date of this dividend was Monday, September 21st. This represents a $2.60 dividend on an annualized basis and a yield of 0.8%. Broadcom's dividend payout ratio (DPR) is currently 33.21%.

Broadcom Company Profile

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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