Broadcom Inc. $AVGO Stock Sold by Russell Investments Group Ltd.

Key Points

• Russell Investments reduced its Broadcom stake by 6.6% in the third quarter, selling 366,360 shares. It still held 5.18 million shares, worth about $1.82 billion, making Broadcom its ninth-largest holding.
• Broadcom reported quarterly EPS of $3.32 and revenue of $29.59 billion, beating analyst estimates; revenue rose 85.5% year over year. The company also pays an annualized dividend of $2.60 per share, a 0.7% yield.
• Shares traded at $347.01 in Friday’s mid-day session. Analysts surveyed by MarketBeat maintained a “Moderate Buy” consensus rating and an average price target of $525.19.

Russell Investments Group Ltd. cut its stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 6.6% in the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 5,179,705 shares of the semiconductor manufacturer's stock after selling 366,360 shares during the period. Broadcom makes up approximately 1.6% of Russell Investments Group Ltd.'s holdings, making the stock its 9th largest holding. Russell Investments Group Ltd. owned about 0.11% of Broadcom worth $1,821,270,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently modified their holdings of AVGO. NerdWallet Wealth Partners LLC grew its holdings in shares of Broadcom by 2.6% in the 2nd quarter. NerdWallet Wealth Partners LLC now owns 1,057 shares of the semiconductor manufacturer's stock worth $399,000 after acquiring an additional 27 shares during the period. Veery Capital LLC increased its stake in Broadcom by 1.4% in the 2nd quarter. Veery Capital LLC now owns 1,900 shares of the semiconductor manufacturer's stock valued at $718,000 after purchasing an additional 27 shares in the last quarter. Ridgeline Wealth Planning LLC raised its holdings in Broadcom by 2.1% during the second quarter. Ridgeline Wealth Planning LLC now owns 1,302 shares of the semiconductor manufacturer's stock worth $492,000 after purchasing an additional 27 shares during the last quarter. Meridian Management Co. raised its holdings in Broadcom by 0.3% during the first quarter. Meridian Management Co. now owns 9,425 shares of the semiconductor manufacturer's stock worth $2,917,000 after purchasing an additional 28 shares during the last quarter. Finally, Arkansas Financial Group Inc. raised its holdings in Broadcom by 3.5% during the second quarter. Arkansas Financial Group Inc. now owns 866 shares of the semiconductor manufacturer's stock worth $327,000 after purchasing an additional 29 shares during the last quarter. 76.43% of the stock is currently owned by institutional investors and hedge funds.

Broadcom Price Performance

Shares of AVGO traded down $17.35 during mid-day trading on Friday, reaching $347.01. 31,579,948 shares of the company's stock were exchanged, compared to its average volume of 26,761,208. 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 Inc. has a 52-week low of $289.77 and a 52-week high of $495.00. The company has a market cap of $1.66 trillion, a price-to-earnings ratio of 44.32 and a beta of 1.49. The company has a 50-day simple moving average of $345.39 and a two-hundred day simple moving average of $366.55.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its 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 firm had revenue of $29.59 billion for the quarter, compared to analyst estimates of $29.24 billion. During the same quarter in the prior year, the company earned $1.69 EPS. Broadcom's revenue was up 85.5% on a year-over-year basis. On average, sell-side analysts predict that Broadcom Inc. will post 10.20 EPS 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 0.7%. Broadcom's dividend payout ratio (DPR) is presently 33.21%.

Recent Broadcom Headlines

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

• Positive Sentiment: Broadcom could benefit as cloud providers diversify beyond NVIDIA and invest in custom AI chips. The company designs custom ASICs for hyperscalers, and Anthropic’s disclosed spending commitments have been cited as support for Broadcom’s growth outlook. Anthropic’s S-1 strengthens the case for Broadcom’s AI growth
• Positive Sentiment: Despite Rothschild & Co Redburn’s downgrade, the articles note that Wall Street’s average price target remains around $533, above the firm’s new $398 target. This suggests some analysts still see substantial upside. Is Rothschild & Co Redburn Wrong to Give Up on Broadcom?
• Negative Sentiment: Rothschild & Co Redburn cut AVGO to Neutral from Buy and lowered its price target by 33%, from $595 to $398. It flagged risk from Broadcom’s growing exposure to AI financing arrangements, including reliance on AI companies such as Anthropic and OpenAI that are not yet self-funding. Broadcom stock falls as firm flags AI financing risks

Analyst Upgrades and Downgrades

A number of analysts have commented on AVGO shares. Jefferies Financial Group initiated coverage on Broadcom in a research report on Thursday, September 3rd. They set a "buy" rating and a $550.00 target price on the stock. DA Davidson upgraded Broadcom from a "neutral" rating to a "buy" rating and raised their price target for the company from $350.00 to $400.00 in a research report on Tuesday, October 27th. Lake Street Capital upgraded Broadcom to a "buy" rating in a research report on Thursday, September 3rd. Royal Bank Of Canada began coverage on Broadcom in a research note on Thursday, September 3rd. They set an "outperform" rating for the company. Finally, Cantor Fitzgerald boosted their price objective on shares of Broadcom from $525.00 to $600.00 and gave the stock an "overweight" rating in a research report on Thursday, September 3rd. One research analyst has rated the stock with a Strong Buy rating, thirty-eight have given a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $525.19.

About Broadcom

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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