First Financial Bank Trust Division Buys 8,788 Shares of Broadcom Inc. $AVGO

Key Points

• First Financial Bank Trust Division increased its Broadcom stake by 22.5%, purchasing 8,788 shares to hold 47,817 shares valued at approximately $16.8 million. Institutional investors and hedge funds collectively own 76.43% of Broadcom.
• Analysts maintain a broadly positive outlook, with a consensus “Moderate Buy” rating and an average price target of $527.20. Broadcom also surpassed quarterly earnings and revenue estimates, reporting $3.32 in adjusted EPS and $29.59 billion in revenue, up 85.5% year over year.
• Broadcom shares recently fell 2.1% to $343.64, while the company’s AI partnership with Anthropic could generate substantial future chip demand but also creates customer-concentration and credit risks tied to Anthropic’s large infrastructure commitments.

First Financial Bank Trust Division increased its position in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 22.5% during the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 47,817 shares of the semiconductor manufacturer's stock after purchasing an additional 8,788 shares during the period. Broadcom accounts for about 1.3% of First Financial Bank Trust Division's investment portfolio, making the stock its 18th largest holding. First Financial Bank Trust Division's holdings in Broadcom were worth $16,793,000 at the end of the most recent reporting period.

A number of other institutional investors have also recently added to or reduced their stakes in the company. State Street Corp lifted its holdings in shares of Broadcom by 8.7% in the second quarter. State Street Corp now owns 208,031,610 shares of the semiconductor manufacturer's stock valued at $75,367,711,000 after buying an additional 16,651,378 shares during the period. Norges Bank acquired a new position in Broadcom during the fourth quarter worth about $24,252,196,000. Bank of America Corp DE grew its holdings in Broadcom by 4.6% during the second quarter. Bank of America Corp DE now owns 61,423,013 shares of the semiconductor manufacturer's stock worth $23,202,543,000 after acquiring an additional 2,685,916 shares during the period. Wellington Management Group LLP raised its position in Broadcom by 3.8% in the second quarter. Wellington Management Group LLP now owns 51,580,703 shares of the semiconductor manufacturer's stock worth $19,484,611,000 after acquiring an additional 1,892,721 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in Broadcom by 2.9% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 40,180,530 shares of the semiconductor manufacturer's stock worth $15,178,195,000 after acquiring an additional 1,140,598 shares in the last quarter. 76.43% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on the stock. Evercore set a $578.00 price objective on shares of Broadcom and gave the company an "outperform" rating in a research report on Thursday, September 3rd. Rosenblatt Securities started coverage on shares of Broadcom in a report on Thursday, September 3rd. They issued a "buy" rating and a $600.00 target price on the stock. Cantor Fitzgerald increased their target price on shares of Broadcom from $525.00 to $600.00 and gave the company an "overweight" rating in a research note on Thursday, September 3rd. KeyCorp restated an "overweight" rating and set a $575.00 target price on shares of Broadcom in a report on Thursday, September 3rd. Finally, Raymond James Financial reaffirmed an "outperform" rating and issued a $475.00 price target (up from $450.00) on shares of Broadcom in a report on Thursday, September 3rd. One research analyst has rated the stock with a Strong Buy rating, thirty-seven have assigned a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $527.20.

Broadcom Trading Down 2.1%

AVGO stock traded down $7.55 during mid-day trading on Thursday, reaching $343.64. 22,308,464 shares of the stock traded hands, compared to its average volume of 25,136,525. Broadcom Inc. has a 52-week low of $289.96 and a 52-week high of $495.00. The stock's fifty day moving average is $374.25 and its 200-day moving average is $380.70. The company has a market cap of $1.64 trillion, a P/E ratio of 43.89 and a beta of 1.44. The company has a current ratio of 2.50, a quick ratio of 2.29 and a debt-to-equity ratio of 0.57.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share 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 business had revenue of $29.59 billion for the quarter, compared to the consensus estimate of $29.24 billion. During the same period last year, the firm posted $1.69 earnings per share. The firm's quarterly revenue was up 85.5% compared to the same quarter last year. As a group, sell-side analysts expect that Broadcom Inc. will post 10.36 earnings per share for the current year.

Broadcom Announces Dividend

The company also recently disclosed 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 was Monday, September 21st. Broadcom's payout ratio is presently 33.21%.

Key Stories Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom has agreed to provide Anthropic with up to $42 billion in financing to lease Broadcom chips and fund the AI company’s infrastructure expansion. The facility could cover roughly one-third of Anthropic’s $125.2 billion, five-year commitment for TPU computing capacity, creating a potentially significant source of future chip demand. Broadcom to lend Anthropic up to $42 billion to lease its chips
• Positive Sentiment: Anthropic could become Broadcom’s largest customer next year, while the arrangement also includes chip supply and equipment leasing. Investors may view the deal as evidence that Broadcom is becoming deeply embedded in the rapidly expanding AI infrastructure market. Broadcom Stock Rises. Anthropic and Broadcom Are Becoming More Intertwined.
• Neutral Sentiment: The financing may be convertible into Anthropic shares, giving Broadcom potential equity upside but also making the deal’s value dependent on Anthropic’s future growth and any IPO outcome. Broadcom to provide Anthropic with up to $42 billion in financing
• Negative Sentiment: Investors are concerned about credit exposure and customer concentration. Reports cite Anthropic’s $161.2 billion in Broadcom lease obligations and $518 billion in total infrastructure commitments, raising questions about whether Anthropic can support its spending plans. If Anthropic’s growth or financing deteriorates, Broadcom could face repayment, utilization, or concentration risks. Broadcom’s AI Growth Story Faces a $161 Billion Anthropic Test

Insider Buying and Selling at Broadcom

In related news, insider Mark Brazeal sold 25,000 shares of the company's stock in a transaction on Friday, July 10th. The stock was sold at an average price of $401.33, for a total transaction of $10,033,250.00. Following the transaction, the insider directly owned 194,989 shares of the company's stock, valued at approximately $78,254,935.37. The trade was a 11.36% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Gayla J. Delly sold 1,890 shares of Broadcom stock in a transaction dated Wednesday, July 8th. The shares were sold at an average price of $385.38, for a total value of $728,368.20. Following the transaction, the director directly owned 31,326 shares in the company, valued at approximately $12,072,413.88. This trade represents a 5.69% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 51,890 shares of company stock worth $20,241,368. Company insiders own 1.90% of the company's stock.

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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