Compass Capital Management Inc. Sells 10,795 Shares of Broadcom Inc. $AVGO

Key Points

• Compass Capital Management cut its Broadcom stake by 89.9% in the third quarter, selling 10,795 shares and retaining 1,209 shares valued at about $425,000.
• Institutional investors collectively own 76.43% of Broadcom shares, while several firms mentioned in the article increased their holdings. Analysts’ consensus rating was Moderate Buy, with an average price target of $525.19.
• Broadcom shares fell 4.8% to $347.01 in Friday trading. Its latest reported quarterly results beat estimates, with EPS of $3.32 and revenue up 85.5% year over year.

Compass Capital Management Inc. lessened its holdings in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 89.9% in the 3rd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 1,209 shares of the semiconductor manufacturer's stock after selling 10,795 shares during the period. Compass Capital Management Inc.'s holdings in Broadcom were worth $425,000 as of its most recent SEC filing.

Other large investors have also modified their holdings of the company. Valmark Advisers Inc. boosted its holdings in Broadcom by 1.5% in the third quarter. Valmark Advisers Inc. now owns 8,704 shares of the semiconductor manufacturer's stock valued at $3,057,000 after purchasing an additional 125 shares during the period. ICICI Prudential Asset Management Co Ltd grew its stake in Broadcom by 25.4% during the 3rd quarter. ICICI Prudential Asset Management Co Ltd now owns 54,670 shares of the semiconductor manufacturer's stock worth $19,200,000 after purchasing an additional 11,069 shares in the last quarter. PFC Capital Group Inc. increased its holdings in Broadcom by 1.9% during the 3rd quarter. PFC Capital Group Inc. now owns 4,368 shares of the semiconductor manufacturer's stock worth $1,534,000 after purchasing an additional 80 shares during the period. Money Concepts Capital Corp increased its holdings in Broadcom by 6.8% during the 3rd quarter. Money Concepts Capital Corp now owns 10,876 shares of the semiconductor manufacturer's stock worth $3,819,000 after purchasing an additional 691 shares during the period. Finally, Citizens & Northern Corp raised its position in Broadcom by 4.5% in the 3rd quarter. Citizens & Northern Corp now owns 13,265 shares of the semiconductor manufacturer's stock valued at $4,659,000 after purchasing an additional 575 shares in the last quarter. Hedge funds and other institutional investors own 76.43% of the company's stock.

Analyst Ratings Changes

A number of brokerages have recently commented on AVGO. KeyCorp reissued an "overweight" rating and set a $575.00 price objective on shares of Broadcom in a research report on Thursday, September 3rd. Fox Advisors raised shares of Broadcom to an "outperform" rating in a report on Thursday, September 3rd. The Goldman Sachs Group lifted their price target on shares of Broadcom from $525.00 to $540.00 and gave the stock a "buy" rating in a research note on Thursday, September 3rd. William Blair downgraded shares of Broadcom from an "outperform" rating to a "market perform" rating in a research report on Tuesday, October 27th. Finally, Sanford C. Bernstein reiterated a "buy" rating on shares of Broadcom in a research note on Monday, September 21st. One equities research analyst has rated the stock with a Strong Buy rating, thirty-eight have assigned a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $525.19.

Broadcom News Summary

These are some of the AVGO news items 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

Broadcom Stock Down 4.8%

Shares of NASDAQ:AVGO traded down $17.35 during trading on Friday, hitting $347.01. 31,579,948 shares of the company were exchanged, compared to its average volume of 26,761,208. The firm's 50 day moving average price is $345.39 and its 200-day moving average price is $366.55. Broadcom Inc. has a 12-month low of $289.77 and a 12-month high of $495.00. 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 capitalization of $1.66 trillion, a P/E ratio of 44.32 and a beta of 1.49.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its quarterly earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 EPS for the quarter, topping the consensus estimate 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 for the quarter, compared to analyst estimates of $29.24 billion. During the same period last year, the business earned $1.69 EPS. Broadcom's revenue for the quarter was up 85.5% compared to the same quarter last year. On average, research analysts predict that Broadcom Inc. will post 10.20 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Monday, September 21st were issued 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 dividend yield of 0.7%. Broadcom's dividend payout ratio (DPR) is presently 33.21%.

Broadcom Company 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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