Reliant Investment Management LLC Acquires New Shares in Broadcom Inc. $AVGO

Key Points

• Reliant Investment Management acquired 53,359 Broadcom shares worth approximately $18.7 million, making AVGO 6.4% of its portfolio and its fourth-largest holding. Institutional investors collectively own 76.43% of the company.
• Analysts remain broadly positive, with one Strong Buy, 37 Buy, and three Hold ratings. Broadcom has a consensus rating of “Moderate Buy” and an average price target of $527.20.
• Broadcom exceeded quarterly expectations with $3.32 EPS and $29.59 billion in revenue, up 85.5% year over year, while shares recently traded at $346.25—below both their 50-day and 200-day moving averages.

Reliant Investment Management LLC bought a new stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) during the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm bought 53,359 shares of the semiconductor manufacturer's stock, valued at approximately $18,739,000. Broadcom comprises 6.4% of Reliant Investment Management LLC's investment portfolio, making the stock its 4th largest holding.

A number of other institutional investors and hedge funds have also modified their holdings of AVGO. Networth Advisors LLC lifted 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 valued at $26,000 after purchasing an additional 71 shares in the last quarter. Core Capital Management & Research inc. purchased a new stake in shares of Broadcom during the second quarter valued at $31,000. Harborfront Financial Group LLC bought a new stake in Broadcom in the 2nd quarter worth about $38,000. Coppell Advisory Solutions LLC bought a new stake in Broadcom in the 2nd quarter worth about $60,000. Finally, IMG Wealth Management Inc. bought a new stake in Broadcom in the 2nd quarter worth about $64,000. Institutional investors own 76.43% of the company's stock.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on AVGO. Rosenblatt Securities assumed coverage on Broadcom in a research report on Thursday, September 3rd. They issued a "buy" rating and a $600.00 target price for the company. Lake Street Capital raised shares of Broadcom to a "buy" rating in a report on Thursday, September 3rd. Weiss Ratings upgraded shares of Broadcom from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, October 8th. President Capital lifted their price target on shares of Broadcom from $520.00 to $546.00 and gave the stock a "buy" rating in a research note on Thursday, September 3rd. Finally, JPMorgan Chase & Co. reissued a "buy" rating on shares of Broadcom in a report on Thursday, September 3rd. One investment 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 MarketBeat.com, Broadcom presently has a consensus rating of "Moderate Buy" and an average target price of $527.20.

Broadcom Trading Down 3.1%

Shares of NASDAQ:AVGO opened at $346.25 on Thursday. The stock has a market capitalization of $1.65 trillion, a price-to-earnings ratio of 44.22 and a beta of 1.46. The company has a debt-to-equity ratio of 0.57, a quick ratio of 2.29 and a current ratio of 2.50. The stock's 50-day simple moving average is $367.83 and its two-hundred day simple moving average is $383.58. 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 released its quarterly 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. Broadcom had a return on equity of 48.33% and a net margin of 42.94%. The business had revenue of $29.59 billion during the quarter, compared to the consensus estimate of $29.24 billion. During the same period in the previous year, the company posted $1.69 EPS. The business's quarterly revenue was up 85.5% compared to the same quarter last year. Analysts expect that Broadcom Inc. will post 10.37 EPS for the current year.

Broadcom Announces Dividend

The firm 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 dividend on an annualized basis and a dividend yield of 0.8%. Broadcom's dividend payout ratio (DPR) is presently 33.21%.

Broadcom News Summary

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s custom AI accelerator business remains a major growth driver. The company is reportedly booking orders well into 2028 as large technology customers shift toward internally designed chips, potentially benefiting Broadcom as AI spending expands beyond Nvidia. One Stock Could Benefit as AI Spending Moves Beyond Nvidia
• Positive Sentiment: Analysts continue to raise expectations: Erste Group lifted its fiscal 2027 EPS forecast to $17.59 from $17.54, while other coverage highlights Broadcom’s strong free cash flow, high-margin semiconductor and infrastructure-software businesses, and substantial AI-chip revenue.
• Positive Sentiment: Broadcom is preparing to launch an AI networking platform at the OCP Global Summit, supporting the view that its opportunity extends beyond accelerators into the networking infrastructure needed for AI data centers. Broadcom To Launch AI Networking Platform
• Positive Sentiment: The introduction of VMware HyperArmor adds a new security product for VMware Cloud Foundation and could strengthen Broadcom’s infrastructure-software portfolio. Broadcom Introduces VMware HyperArmor
• Neutral Sentiment: Several analyses describe a disconnect between Broadcom’s rapidly growing revenue and weaker stock performance. The company is viewed as a potentially steadier long-term AI investment than more concentrated semiconductor peers, but investors remain divided over whether current growth is sufficiently reflected in its valuation.
• Negative Sentiment: CEO Hock Tan warned that AI investment has a “casino” element and faces a capital hurdle. Those comments have heightened concerns that data-center customers could eventually slow spending or struggle to earn adequate returns, even as Broadcom raises AI expectations.
• Negative Sentiment: Reports discussing a possible $50 billion debt deal have raised questions about leverage and financing risk. Meanwhile, AVGO remains well below its 52-week high and below its 50-day and 200-day moving averages, indicating continuing technical pressure and investor profit-taking.

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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