Lincoln Capital LLC Buys 21,096 Shares of Broadcom Inc. $AVGO

Key Points

• Lincoln Capital LLC acquired 21,096 Broadcom shares worth approximately $7.4 million in the third quarter, making AVGO its 16th-largest holding and representing about 1.3% of its portfolio. Institutional investors collectively own 76.43% of Broadcom.
• Broadcom reported strong quarterly results, with revenue rising 85.5% year over year to $29.59 billion and EPS of $3.32, exceeding analyst expectations. The company also pays a quarterly dividend of $0.65, equal to a 0.7% annual yield.
• Broadcom’s AI growth outlook remains a key catalyst, with potential financing exceeding $50 billion for custom chips developed with OpenAI and new networking technologies for AI clusters. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $527.20.

Lincoln Capital LLC acquired a new stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) during the 3rd quarter, according to its most recent 13F filing with the SEC. The firm acquired 21,096 shares of the semiconductor manufacturer's stock, valued at approximately $7,409,000. Broadcom accounts for about 1.3% of Lincoln Capital LLC's investment portfolio, making the stock its 16th largest position.

A number of other hedge funds have also recently made changes to their positions in AVGO. Networth Advisors LLC lifted its holdings in shares of Broadcom by 546.2% in the first quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer's stock worth $26,000 after buying an additional 71 shares in the last quarter. Core Capital Management & Research inc. purchased a new position in shares of Broadcom in the 2nd quarter worth approximately $31,000. Harborfront Financial Group LLC purchased a new position in shares of Broadcom during the 2nd quarter worth about $38,000. Coppell Advisory Solutions LLC purchased a new position in shares of Broadcom during the second quarter valued at approximately $60,000. Finally, IMG Wealth Management Inc. purchased a new stake in shares of Broadcom during the second quarter valued at $64,000. Institutional investors own 76.43% of the company's stock.

Broadcom News Summary

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

Broadcom Price Performance

AVGO stock opened at $361.54 on Friday. The firm has a market capitalization of $1.73 trillion, a P/E ratio of 46.17 and a beta of 1.46. The business's 50-day moving average is $371.24 and its two-hundred day moving average is $382.38. Broadcom Inc. has a 1 year low of $289.96 and a 1 year 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.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 EPS for the quarter, beating analysts' consensus estimates 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 analysts' expectations of $29.24 billion. During the same period in the previous year, the company posted $1.69 EPS. The company's quarterly revenue was up 85.5% on a year-over-year basis. Analysts anticipate that Broadcom Inc. will post 10.37 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Monday, September 21st were paid a $0.65 dividend. This represents a $2.60 annualized dividend and a yield of 0.7%. The ex-dividend date was Monday, September 21st. Broadcom's dividend payout ratio is presently 33.21%.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on the stock. The Goldman Sachs Group upped their price target on shares of Broadcom from $525.00 to $540.00 and gave the stock a "buy" rating in a research report on Thursday, September 3rd. Lake Street Capital raised Broadcom to a "buy" rating in a research report on Thursday, September 3rd. JPMorgan Chase & Co. restated a "buy" rating on shares of Broadcom in a research report on Thursday, September 3rd. Arete Research raised their target price on Broadcom from $488.00 to $530.00 and gave the stock a "buy" rating in a report on Tuesday, July 21st. Finally, Dbs Bank upgraded shares of Broadcom to a "moderate buy" rating in a research report on Thursday, June 18th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-seven have assigned a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $527.20.

Broadcom Company Profile

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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