Broadcom Inc. $AVGO Stock: Traynor Capital Management Inc. Cuts Holdings

Key Points

• Traynor Capital cut its Broadcom stake by 2.5%, selling 4,827 shares and retaining 184,490 shares valued at about $64.8 million.
• Analysts maintain a “Moderate Buy” consensus on Broadcom, with an average price target of $530.52; 39 analysts rate it Buy, one Strong Buy and five Hold.
• Broadcom’s latest reported quarter beat earnings and revenue expectations, while its AI semiconductor revenue reached $16.7 billion, above management’s $16 billion target. The stock was reported down 2.0% in the session.

Traynor Capital Management Inc. lessened its stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 2.5% during the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 184,490 shares of the semiconductor manufacturer's stock after selling 4,827 shares during the period. Broadcom comprises 3.0% of Traynor Capital Management Inc.'s investment portfolio, making the stock its 7th largest holding. Traynor Capital Management Inc.'s holdings in Broadcom were worth $64,791,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds and other institutional investors also recently made changes to their positions in the company. Yukon Wealth Management Inc. lifted its position in shares of Broadcom by 1.1% in the 1st quarter. Yukon Wealth Management Inc. now owns 2,501 shares of the semiconductor manufacturer's stock valued at $774,000 after acquiring an additional 26 shares in the last quarter. NerdWallet Wealth Partners LLC boosted its stake in 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 purchasing an additional 27 shares during the period. Veery Capital LLC grew its position in Broadcom by 1.4% during the 2nd quarter. Veery Capital LLC now owns 1,900 shares of the semiconductor manufacturer's stock worth $718,000 after purchasing an additional 27 shares in the last quarter. Ridgeline Wealth Planning LLC grew its position in Broadcom by 2.1% during the 2nd 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 in the last quarter. Finally, Capital Planning LLC raised its stake in Broadcom by 0.7% during the 1st quarter. Capital Planning LLC now owns 4,044 shares of the semiconductor manufacturer's stock valued at $1,252,000 after purchasing an additional 28 shares during the period. 76.43% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several equities research analysts recently issued reports on AVGO shares. Arete Research increased their price objective on Broadcom from $488.00 to $530.00 and gave the stock a "buy" rating in a research note on Tuesday, July 21st. William Blair lowered shares of Broadcom from an "outperform" rating to a "market perform" rating in a research report on Tuesday, October 27th. Cantor Fitzgerald raised their price target on shares of Broadcom from $525.00 to $600.00 and gave the stock an "overweight" rating in a report on Thursday, September 3rd. Royal Bank Of Canada assumed coverage on shares of Broadcom in a research note on Thursday, September 3rd. They issued an "outperform" rating on the stock. Finally, President Capital lifted their target price on shares of Broadcom from $520.00 to $546.00 and gave the company a "buy" rating in a research note on Thursday, September 3rd. One investment 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. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $530.52.

Broadcom News Roundup

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 Trading Down 2.0%

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

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. The firm had revenue of $29.59 billion during the quarter, compared to analysts' expectations of $29.24 billion. Broadcom had a net margin of 42.94% and a return on equity of 48.33%. The company's revenue was up 85.5% compared to the same quarter last year. During the same period in the previous year, the company earned $1.69 earnings per share. On average, research analysts forecast that Broadcom Inc. will post 10.37 EPS for the current fiscal year.

Broadcom Announces Dividend

The firm also recently announced 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. This represents a $2.60 annualized dividend and a yield of 0.8%. The ex-dividend date of this dividend was Monday, September 21st. Broadcom's dividend payout ratio is presently 33.21%.

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 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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