Congress Asset Management Co. Boosts Stake in Broadcom Inc. $AVGO

Congress Asset Management Co. increased its holdings in Broadcom Inc. (NASDAQ:AVGO) by 11.2% in the 3rd quarter, HoldingsChannel.com reports. The firm owned 821,013 shares of the semiconductor manufacturer’s stock after buying an additional 82,707 shares during the quarter. Broadcom comprises approximately 1.8% of Congress Asset Management Co.’s portfolio, making the stock its 6th largest holding. Congress Asset Management Co.’s holdings in Broadcom were worth $288,331,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in AVGO. Networth Advisors LLC grew its stake in shares of Broadcom by 546.2% in the 1st quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer’s stock valued at $26,000 after purchasing an additional 71 shares during the period. Core Capital Management & Research inc. bought a new position in shares of Broadcom during the 2nd quarter worth approximately $31,000. Harborfront Financial Group LLC bought a new position in shares of Broadcom during the 2nd quarter worth approximately $38,000. IMG Wealth Management Inc. acquired a new stake in Broadcom in the 2nd quarter valued at $64,000. Finally, Byrne Asset Management LLC acquired a new stake in Broadcom in the 2nd quarter valued at $84,000. Institutional investors own 76.43% of the company’s stock.

Broadcom Price Performance

AVGO stock traded up $13.30 during midday trading on Tuesday, reaching $375.81. 30,765,540 shares of the company’s stock traded hands, compared to its average volume of 25,155,971. The company has a 50-day simple moving average of $372.33 and a two-hundred day simple moving average of $381.36. Broadcom Inc. has a 1-year low of $289.96 and a 1-year high of $495.00. The company has a market cap of $1.79 trillion, a price-to-earnings ratio of 48.00 and a beta of 1.46. The company has a quick ratio of 2.29, a current ratio of 2.50 and a debt-to-equity ratio of 0.57.

Broadcom (NASDAQ:AVGO) last posted its quarterly earnings data on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 EPS for the quarter, topping analysts’ consensus estimates of $3.22 by $0.10. The company had revenue of $29.59 billion for the quarter, compared to analyst estimates of $29.24 billion. Broadcom had a return on equity of 48.33% and a net margin of 42.94%.The business’s revenue was up 85.5% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.69 earnings per share. On average, analysts anticipate that Broadcom Inc. will post 10.37 earnings per share for the current year.

Broadcom Dividend Announcement

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

Analysts Set New Price Targets

Several research analysts have issued reports on the company. Weiss Ratings lowered Broadcom from a “buy (b)” rating to a “buy (b-)” rating in a research note on Thursday, July 30th. President Capital boosted their target price on shares of Broadcom from $520.00 to $546.00 and gave the company a “buy” rating in a research note on Thursday, September 3rd. Royal Bank Of Canada assumed coverage on shares of Broadcom in a research note on Thursday, September 3rd. They issued an “outperform” rating on the stock. Wall Street Zen lowered shares of Broadcom from a “strong-buy” rating to a “buy” rating in a report on Saturday, July 18th. Finally, Citic Securities upgraded shares of Broadcom to a “buy” rating and increased their target price for the stock from $450.00 to $525.00 in a research report on Tuesday, September 8th. One research analyst has rated the stock with a Strong Buy rating, thirty-seven have issued a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $527.20.

Broadcom News Summary

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Potential $42 billion Anthropic financing deal: Reports indicate Broadcom may be arranging a large financing package tied to Anthropic’s purchase of AI chips and related infrastructure. If completed, the deal could provide significant visibility into future AI revenue and reinforce Broadcom’s role as a key supplier to hyperscale customers. Broadcom Stock Jumps Following Reported $42 Billion Financing Deal With Anthropic Why Is Broadcom Lining Up a Large AI Chip Financing Deal?
• Positive Sentiment: Custom-chip momentum supports the AI growth story: Marvell’s investor-day discussion of custom AI silicon lifted sentiment across the sector, highlighting demand for specialized accelerators and networking products. Broadcom is viewed as one of the leading design partners for cloud companies developing their own chips. Marvell Rallies as Investor Day Presses the Custom AI Silicon Case
• Positive Sentiment: Analysts remain constructive on AI demand: Recent coverage emphasizes Broadcom’s sharply accelerating AI semiconductor revenue, including reported year-over-year growth above 200%, and argues that data-center power constraints may affect competitors and project timing more than Broadcom and Nvidia. Nvidia and Broadcom May Be Protected From AI Power Shortage
• Neutral Sentiment: Options activity signals bullish positioning: Investors purchased approximately 426,000 Broadcom call options, about 34% above typical daily call volume. This indicates increased speculative interest but does not guarantee sustained buying in the stock.
• Negative Sentiment: Financing and valuation risks remain: Critics question whether Anthropic-related arrangements could represent circular financing, in which supplier financing indirectly supports customer purchases. Broadcom also trades at a premium multiple, making the shares vulnerable if AI growth slows or the reported deal fails to materialize. Broadcom Has a New Problem: Anthropic

Insider Activity

In related news, Director Gayla Delly sold 1,890 shares of the company’s stock in a transaction dated Wednesday, July 8th. The shares were sold at an average price of $385.38, for a total transaction of $728,368.20. Following the transaction, the director owned 31,326 shares in the company, valued at $12,072,413.88. This represents a 5.69% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Mark Brazeal sold 25,000 shares of the stock in a transaction dated 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 sale, the insider directly owned 194,989 shares in the company, valued at approximately $78,254,935.37. This represents a 11.36% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 51,890 shares of company stock worth $20,241,368. 1.90% of the stock is owned by corporate insiders.

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.