Broadcom Inc. $AVGO Stock: Wedmont Private Capital Raises Stake

Key Points

• Wedmont Private Capital increased its Broadcom stake by 19.5% in the third quarter, adding 15,484 shares to own 95,009 shares valued at approximately $34.2 million. Institutional investors collectively own 76.43% of the company.
• Wall Street maintains a positive outlook, with a consensus “Moderate Buy” rating and an average price target of $527.20; 37 analysts rate the stock a Buy, while three rate it a Hold.
• Broadcom exceeded quarterly expectations with $3.32 in EPS and $29.59 billion in revenue, up 85.5% year over year. The company also pays a quarterly dividend of $0.65, equivalent to a $2.60 annualized payout and a 0.7% yield.

Wedmont Private Capital lifted its position in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 19.5% during the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 95,009 shares of the semiconductor manufacturer's stock after acquiring an additional 15,484 shares during the period. Broadcom comprises approximately 0.8% of Wedmont Private Capital's holdings, making the stock its 22nd largest holding. Wedmont Private Capital's holdings in Broadcom were worth $34,217,000 at the end of the most recent quarter.

Other large investors have also recently added to or reduced their stakes in the company. Networth Advisors LLC raised its holdings in shares of Broadcom by 546.2% during the first quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer's stock worth $26,000 after purchasing an additional 71 shares during the period. Core Capital Management & Research inc. acquired a new position in shares of Broadcom in the 2nd quarter valued at about $31,000. Harborfront Financial Group LLC bought a new stake in shares of Broadcom during the 2nd quarter valued at about $38,000. Coppell Advisory Solutions LLC bought a new stake in shares of Broadcom during the 2nd quarter valued at about $60,000. Finally, IMG Wealth Management Inc. acquired a new stake in Broadcom during the second quarter worth about $64,000. 76.43% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

AVGO has been the topic of a number of recent research reports. UBS Group cut shares of Broadcom from a "buy" rating to a "hold" rating in a report on Thursday, September 3rd. Dbs Bank upgraded Broadcom to a "moderate buy" rating in a research report on Thursday, June 18th. Arete Research increased their target price on Broadcom from $488.00 to $530.00 and gave the stock a "buy" rating in a research report on Tuesday, July 21st. BMO Capital Markets raised their target price on Broadcom from $455.00 to $575.00 and gave the company an "outperform" rating in a research note on Thursday, September 3rd. Finally, Jefferies Financial Group began coverage on shares of Broadcom in a research report on Thursday, September 3rd. They set a "buy" rating and a $550.00 price target for the company. One equities research analyst has rated the stock with a Strong Buy rating, thirty-seven have given a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat.com, Broadcom currently has a consensus rating of "Moderate Buy" and a consensus target price of $527.20.

Broadcom Stock Up 0.4%

AVGO opened at $361.54 on Friday. The stock's 50 day moving average price is $371.24 and its 200 day moving average price is $382.38. The company has a debt-to-equity ratio of 0.57, a current ratio of 2.50 and a quick ratio of 2.29. The stock has a market cap of $1.73 trillion, a P/E ratio of 46.17 and a beta of 1.46. Broadcom Inc. has a 12 month low of $289.96 and a 12 month high of $495.00.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its quarterly earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share (EPS) for the quarter, topping 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 company had revenue of $29.59 billion during the quarter, compared to analyst estimates of $29.24 billion. During the same quarter in the previous year, the firm posted $1.69 EPS. The firm's quarterly revenue was up 85.5% on a year-over-year basis. As a group, research analysts predict that Broadcom Inc. will post 10.37 earnings per share for the current year.

Broadcom Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Monday, September 21st were issued a $0.65 dividend. 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 is presently 33.21%.

Key Stories Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom is reportedly arranging more than $50 billion in financing for custom AI chips being developed with OpenAI. Although discussions are preliminary, the potential project underscores the scale of expected demand for Broadcom’s custom silicon and could support substantial future revenue. Broadcom seeks more than $50 billion to finance OpenAI AI chips
• Positive Sentiment: At the OCP Global Summit, Broadcom highlighted new networking technologies designed to help hyperscalers scale AI clusters. The announcements reinforce its positioning in high-speed networking and custom AI infrastructure. Broadcom AI networking innovations
• Positive Sentiment: Record profits at Samsung and TSMC are being viewed as evidence that semiconductor demand and AI-related capital spending remain strong, a favorable backdrop for Broadcom’s chip and networking businesses. Record profits at Samsung and TSMC
• Positive Sentiment: Analysts and commentators continue to point to Broadcom’s rapid AI revenue growth and its roughly 24% decline from its 52-week high as a potential entry point, despite expectations for strong earnings growth. Broadcom is lagging the market

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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