Sowell Financial Services LLC Purchases 3,465 Shares of Broadcom Inc. $AVGO

Key Points

• Sowell Financial Services increased its Broadcom position by 6.7% in the third quarter, purchasing 3,465 additional shares and bringing its holdings to 54,883 shares valued at approximately $19.3 million.
• Broadcom continues to attract institutional and analyst support, with 76.43% of shares institutionally owned and a consensus “Moderate Buy” rating with an average price target of $529.17.
• The company’s AI-chip demand and strong quarterly results remain key positives, but risks include supplier diversification by Alphabet, growing competition, and broader market pressure on AI stocks.

Sowell Financial Services LLC lifted its position in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 6.7% in the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 54,883 shares of the semiconductor manufacturer's stock after acquiring an additional 3,465 shares during the quarter. Sowell Financial Services LLC's holdings in Broadcom were worth $19,274,000 at the end of the most recent reporting period.

A number of other large investors also recently made changes to their positions in the company. State Street Corp increased its stake in Broadcom by 8.7% in the 2nd 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 last quarter. Bank of America Corp DE lifted its position in shares of Broadcom by 4.6% during the 2nd quarter. Bank of America Corp DE now owns 61,423,013 shares of the semiconductor manufacturer's stock worth $23,202,543,000 after buying an additional 2,685,916 shares in the last quarter. Wellington Management Group LLP boosted its stake in shares of Broadcom by 3.8% in the 2nd quarter. Wellington Management Group LLP now owns 51,580,703 shares of the semiconductor manufacturer's stock worth $19,484,611,000 after buying an additional 1,892,721 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in shares of Broadcom by 2.9% in the 2nd 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 buying an additional 1,140,598 shares during the last quarter. Finally, Legal & General Group Plc purchased a new position in shares of Broadcom in the 2nd quarter worth approximately $11,998,148,000. 76.43% of the stock is owned by institutional investors.

Broadcom News Roundup

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: ETF investors bought approximately $89.8 million of Broadcom shares on October 21, signaling continued institutional demand. Broadcom Sees $89.8 Million in Net ETF Buying
• Positive Sentiment: Analysts continue to highlight Broadcom’s leadership in custom AI accelerators. Demand from major AI labs and hyperscalers, including Anthropic, OpenAI and Meta, supports management’s ambitious long-term AI semiconductor growth outlook. 3 Magnificent AI Chip Stocks
• Positive Sentiment: Tigress Financial initiated coverage with a Buy rating and a $600 price target, implying substantial upside from recent trading levels. Tigress Financial Broadcom Coverage
• Positive Sentiment: Broadcom launched Arcot Scam Defense, a real-time fraud-detection feature for digital payments. Strong initial pilot results could create incremental growth for its software and security businesses. Broadcom Debuts Arcot Scam Defense
• Neutral Sentiment: Broadcom remains the leading custom-chip design partner, but Alphabet is diversifying its TPU suppliers. Although Broadcom may lose market share, the overall AI accelerator market is expected to expand rapidly, potentially offsetting that loss. Broadcom AI Chip Business Risks
• Negative Sentiment: Investors are worried that customer-owned chip design and increased competition from MediaTek could reduce Broadcom’s role and margins in future AI programs. Alphabet’s supplier diversification is the clearest near-term risk. Broadcom AI Chip Business Risks
• Negative Sentiment: The broader market sell-off is weighing on AI stocks amid higher oil prices, inflation concerns and questions about whether massive data-center investments will generate sufficient returns. Technical commentary identifies the $320 area as an important support test. Broadcom Faces Critical $320 Test

Analyst Ratings Changes

AVGO has been the subject of a number of research analyst reports. Morgan Stanley reaffirmed an "overweight" rating and set a $505.00 price target (up from $502.00) on shares of Broadcom in a research report on Thursday, September 3rd. DA Davidson set a $350.00 price objective on Broadcom and gave the stock a "neutral" rating in a research report on Friday, September 4th. Sanford C. Bernstein reissued a "buy" rating on shares of Broadcom in a research report on Monday, September 21st. Fox Advisors upgraded Broadcom to an "outperform" rating in a research note on Thursday, September 3rd. Finally, Citic Securities raised Broadcom to a "buy" rating and raised their target price for the company from $450.00 to $525.00 in a research report on Tuesday, September 8th. One investment analyst has rated the stock with a Strong Buy rating, thirty-eight have given 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 an average target price of $529.17.

Broadcom Trading Down 0.5%

Shares of Broadcom stock opened at $321.68 on Friday. Broadcom Inc. has a 12-month low of $289.96 and a 12-month high of $495.00. The company has a market cap of $1.54 trillion, a price-to-earnings ratio of 41.08 and a beta of 1.46. The company has a current ratio of 2.50, a quick ratio of 2.29 and a debt-to-equity ratio of 0.57. The company's 50-day moving average price is $356.05 and its 200-day moving average price is $384.25.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its quarterly earnings data on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 EPS for the quarter, beating analysts' consensus estimates of $3.22 by $0.10. The company had revenue of $29.59 billion during the quarter, compared to analyst estimates of $29.24 billion. Broadcom had a net margin of 42.94% and a return on equity of 48.33%. Broadcom's revenue was up 85.5% compared to the same quarter last year. During the same period last year, the business earned $1.69 earnings per share. On average, equities analysts expect that Broadcom Inc. will post 10.37 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Monday, September 21st were paid a $0.65 dividend. The ex-dividend date was Monday, September 21st. This represents a $2.60 annualized dividend and a yield of 0.8%. Broadcom's dividend payout ratio is currently 33.21%.

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 data center, networking, broadband, wireless communications, storage, industrial and other electronic applications.

The company's semiconductor portfolio includes networking and switching components, custom accelerators, connectivity and wireless devices, broadband equipment, optical products, storage controllers and related infrastructure technologies.

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