Broadcom (NASDAQ:AVGO) Stock Price Up 4.3% – Still a Buy?

Broadcom Inc. (NASDAQ:AVGO)’s share price traded up 4.3% during mid-day trading on Wednesday . The stock traded as high as $400.65 and last traded at $392.90. 38,825,464 shares traded hands during mid-day trading, an increase of 48% from the average session volume of 26,158,434 shares. The stock had previously closed at $376.71.

Broadcom News Roundup

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: JPMorgan reiterated a bullish view on Broadcom, saying the market is underestimating the company’s artificial intelligence opportunity and calling it an “aggressive buy” at current levels. Barron’s article
• Positive Sentiment: Analysts and media coverage continue to highlight Broadcom’s strong position in AI infrastructure, custom chips, networking, and enterprise software, reinforcing expectations for multi-year growth. Benzinga article
• Positive Sentiment: A Broadcom director recently bought 1,000 shares, a sign of insider confidence that can support sentiment around the stock. SEC Form 4 filing
• Neutral Sentiment: Broadcom also announced pricing terms for cash tender offers on outstanding debt securities, a balance-sheet management move that should be viewed as neutral to slightly supportive rather than a core growth catalyst. Yahoo Finance article
• Neutral Sentiment: Some commentary raised questions about margin pressure and whether growth is getting harder, but it did not change the broader bullish AI narrative. Zacks article
• Negative Sentiment: Investors are still digesting recent concerns about Broadcom’s cautious AI guidance and valuation, which have pressured the stock at times despite strong fundamentals. Yahoo Finance article

Analyst Ratings Changes

Several research analysts recently issued reports on the stock. Oppenheimer reiterated an “outperform” rating and issued a $535.00 price target (up from $450.00) on shares of Broadcom in a research note on Thursday, June 4th. DA Davidson raised their price objective on shares of Broadcom from $375.00 to $400.00 and gave the company a “neutral” rating in a research note on Thursday, June 4th. Citigroup restated a “buy” rating on shares of Broadcom in a research note on Thursday, June 4th. Benchmark raised their price objective on shares of Broadcom from $485.00 to $545.00 and gave the company a “buy” rating in a research note on Thursday, June 4th. Finally, Seaport Research Partners restated a “neutral” rating on shares of Broadcom in a research note on Wednesday, April 8th. One analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat, Broadcom presently has a consensus rating of “Moderate Buy” and a consensus price target of $490.13.

Broadcom Price Performance

The company has a debt-to-equity ratio of 0.71, a current ratio of 2.24 and a quick ratio of 2.01. The stock has a market capitalization of $1.87 trillion, a P/E ratio of 65.48, a price-to-earnings-growth ratio of 0.69 and a beta of 1.41. The business’s 50 day moving average price is $407.09 and its 200 day moving average price is $363.14.

Broadcom (NASDAQ:AVGO) last posted its quarterly earnings data on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.40 by $0.04. The company had revenue of $22.19 billion for the quarter, compared to the consensus estimate of $22.13 billion. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The firm’s revenue was up 47.9% compared to the same quarter last year. During the same quarter last year, the firm posted $1.58 earnings per share. Sell-side analysts forecast that Broadcom Inc. will post 10.24 EPS for the current year.

Broadcom Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 22nd will be issued a $0.65 dividend. The ex-dividend date of this dividend is Monday, June 22nd. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.7%. Broadcom’s dividend payout ratio (DPR) is presently 43.33%.

Insider Buying and Selling

In other Broadcom news, Director Justine Page sold 2,018 shares of Broadcom stock in a transaction that occurred on Wednesday, April 8th. The shares were sold at an average price of $353.00, for a total transaction of $712,354.00. Following the transaction, the director owned 18,164 shares of the company’s stock, valued at $6,411,892. The trade was a 10.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Charlie B. Kawwas sold 10,000 shares of Broadcom stock in a transaction that occurred on Wednesday, April 8th. The shares were sold at an average price of $345.23, for a total transaction of $3,452,300.00. Following the transaction, the insider directly owned 787,184 shares in the company, valued at $271,759,532.32. This represents a 1.25% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 51,233 shares of company stock valued at $18,125,134 in the last 90 days. 1.90% of the stock is owned by insiders.

Institutional Investors Weigh In On Broadcom

Several institutional investors and hedge funds have recently modified their holdings of the stock. Fullerton Advisors LLC raised its position in shares of Broadcom by 1.3% during the first quarter. Fullerton Advisors LLC now owns 1,989 shares of the semiconductor manufacturer’s stock valued at $616,000 after buying an additional 25 shares during the last quarter. NORTHSTAR ASSET MANAGEMENT Co increased its position in Broadcom by 0.5% during the first quarter. NORTHSTAR ASSET MANAGEMENT Co now owns 5,350 shares of the semiconductor manufacturer’s stock valued at $1,656,000 after acquiring an additional 25 shares during the last quarter. RFG Holdings Inc. increased its position in Broadcom by 0.3% during the first quarter. RFG Holdings Inc. now owns 8,499 shares of the semiconductor manufacturer’s stock valued at $2,631,000 after acquiring an additional 26 shares during the last quarter. Yukon Wealth Management Inc. increased its position in Broadcom by 1.1% during the first quarter. Yukon Wealth Management Inc. now owns 2,501 shares of the semiconductor manufacturer’s stock valued at $774,000 after acquiring an additional 26 shares during the last quarter. Finally, Capital Planning LLC boosted its stake in shares of Broadcom by 0.7% during the first quarter. Capital Planning LLC now owns 4,044 shares of the semiconductor manufacturer’s stock valued at $1,252,000 after purchasing an additional 28 shares during the period. Institutional investors own 76.43% 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 solutions for a broad range of markets. The company’s semiconductor business provides components and systems for wired and wireless communications, enterprise and cloud storage, networking and broadband access, serving original equipment manufacturers, cloud service providers, telecommunications carriers and industrial customers worldwide. Broadcom is headquartered in Irvine, California, and operates globally with research, development and sales organizations across North America, Europe and Asia.

On the semiconductor side, Broadcom’s portfolio includes system-on-chip (SoC) and application-specific integrated circuit (ASIC) solutions, radio-frequency and connectivity components, Ethernet switching and PHY devices, storage adapters and controllers, optical transceivers and other networking silicon.