Broadcom Inc. $AVGO Stock Sold by Retirement Systems of Alabama

Key Points

• Retirement Systems of Alabama cut its Broadcom stake by 19.9% in the third quarter, selling 416,239 shares. It retained 1.68 million shares, valued at about $590 million.
• Broadcom reported quarterly earnings of $3.32 per share, beating analyst estimates of $3.22, while revenue rose 85.5% year over year to $29.59 billion.
• Analysts’ consensus rating was “Moderate Buy,” with an average price target of $530.52; the company also paid a quarterly dividend of $0.65 per share.

Retirement Systems of Alabama decreased its holdings in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 19.9% in the 3rd quarter, according to its most recent Form 13F filing with the SEC. The firm owned 1,680,183 shares of the semiconductor manufacturer's stock after selling 416,239 shares during the period. Broadcom makes up approximately 1.7% of Retirement Systems of Alabama's holdings, making the stock its 9th largest position. Retirement Systems of Alabama's holdings in Broadcom were worth $590,063,000 as of its most recent filing with the SEC.

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

Broadcom Trading Up 4.0%

NASDAQ AVGO opened at $345.22 on Thursday. The stock has a market capitalization of $1.65 trillion, a P/E ratio of 44.09 and a beta of 1.49. Broadcom Inc. has a 52-week low of $289.77 and a 52-week high of $495.00. The firm has a 50-day moving average price of $345.65 and a 200 day moving average price of $366.28. 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 announced its quarterly earnings data on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 EPS for the quarter, beating analysts' consensus estimates of $3.22 by $0.10. Broadcom had a net margin of 42.94% and a return on equity of 48.33%. The firm had revenue of $29.59 billion during the quarter, compared to the consensus estimate of $29.24 billion. During the same quarter last year, the firm earned $1.69 earnings per share. The firm's revenue was up 85.5% compared to the same quarter last year. Equities research analysts expect that Broadcom Inc. will post 10.37 EPS for the current year.

Broadcom Announces Dividend

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

Wall Street Analyst Weigh In

A number of research firms have recently issued reports on AVGO. Lake Street Capital raised Broadcom to a "buy" rating in a report on Thursday, September 3rd. Citic Securities raised Broadcom to a "buy" rating and increased their price target for the stock from $450.00 to $525.00 in a report on Tuesday, September 8th. Fox Advisors raised Broadcom to an "outperform" rating in a report on Thursday, September 3rd. Weiss Ratings upgraded shares of Broadcom from a "buy (b-)" rating to a "buy (b)" rating in a research report on Thursday, October 8th. Finally, BNP Paribas Exane lifted their price objective on shares of Broadcom from $675.00 to $715.00 and gave the company an "outperform" rating in a research report on Friday, September 4th. One research analyst has rated the stock with a Strong Buy rating, thirty-nine have assigned a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $530.52.

Recent Broadcom Headlines

These are some of the AVGO headlines that stood out recently:

• Positive Sentiment: Broadcom shares rose more than 3% in extended trading as turmoil around Nvidia’s CEO sent investors toward rival chipmakers, including Broadcom. Nvidia Stock Sinks as Jensen Huang Ouster Report Sends Investors Toward AMD, Broadcom
• Positive Sentiment: Analysts say Google’s latest TPU developments reinforce Broadcom’s central role in custom AI chips, supporting expectations for ongoing demand from major technology customers. Google's latest TPUs show Broadcom remains central: JPM
• Positive Sentiment: Coverage of Anthropic points to substantial cash and rising revenue as support for its large commitment involving Broadcom, bolstering confidence in the AI partnership and related chip demand. Anthropic's S-1 Strengthens the Case for Broadcom's AI Growth

Broadcom 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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