Broadcom (NASDAQ:AVGO) Stock Price Up 5.5% – Here’s What Happened

Broadcom Inc. (NASDAQ:AVGO)’s share price shot up 5.5% on Thursday. The company traded as high as $369.82 and last traded at $364.36. 43,408,142 shares changed hands during trading, an increase of 72% from the average daily volume of 25,168,486 shares. The stock had previously closed at $345.22.

More Broadcom News

Investors following AVGO have been watching these news items:

• Positive Sentiment: Broader technology shares rebounded as Nvidia selling eased and money flowed into rival chipmakers such as Broadcom and AMD, adding support to AVGO. S&P 500 and Nasdaq: Tech Stocks Rebound
• Positive Sentiment: Long-term AI infrastructure spending remains a supportive backdrop: analysts have repeatedly raised estimates for hyperscaler capital expenditure, potentially sustaining demand for Broadcom’s custom silicon and networking products. Great News for Nvidia, Micron, Broadcom, and AMD Stock Investors
• Neutral Sentiment: Investor optimism is tempered by customer concentration: Broadcom’s five largest customers reportedly accounted for about 55% of recent-quarter revenue. Anthropic is expected to become its largest custom-chip customer in 2027, which represents growth potential but also reliance on a small number of major buyers. Here’s My Biggest Worry About Broadcom Stock

Wall Street Analyst Weigh In

Several brokerages recently commented on AVGO. BMO Capital Markets upped their target price on Broadcom from $455.00 to $575.00 and gave the company an “outperform” rating in a research report on Thursday, September 3rd. JPMorgan Chase & Co. reiterated a “buy” rating on shares of Broadcom in a report on Thursday, September 3rd. Citigroup lowered Broadcom from a “buy” rating to a “neutral” rating in a research note on Tuesday, October 27th. Arete Research increased their price target on Broadcom from $488.00 to $530.00 and gave the stock a “buy” rating in a report on Tuesday, July 21st. Finally, President Capital raised their price objective on shares of Broadcom from $520.00 to $546.00 and gave the stock a “buy” rating in a research report on Thursday, September 3rd. One research analyst has rated the stock with a Strong Buy rating, thirty-nine have given a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $530.52.

Broadcom Stock Up 5.5%

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 stock’s 50-day moving average price is $345.65 and its 200-day moving average price is $366.28. The company has a market cap of $1.74 trillion, a P/E ratio of 46.53 and a beta of 1.49.

Broadcom (NASDAQ:AVGO) last issued 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 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 analyst estimates of $29.24 billion. During the same period in the previous year, the company posted $1.69 EPS. The firm’s revenue was up 85.5% compared to the same quarter last year. As a group, research analysts forecast that Broadcom Inc. will post 10.37 EPS for the current year.

Broadcom Announces Dividend

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

Hedge Funds Weigh In On Broadcom

A number of institutional investors have recently modified their holdings of the company. Core Capital Management & Research inc. bought a new stake in Broadcom during the 2nd quarter valued at $31,000. Harborfront Financial Group LLC acquired a new position in Broadcom during the second quarter worth $38,000. DecisionPoint Financial LLC raised its holdings in Broadcom by 101.9% during the third quarter. DecisionPoint Financial LLC now owns 105 shares of the semiconductor manufacturer’s stock worth $36,000 after buying an additional 53 shares during the last quarter. Align Financial LLC lifted its stake in shares of Broadcom by 67.2% in the third quarter. Align Financial LLC now owns 112 shares of the semiconductor manufacturer’s stock valued at $38,000 after buying an additional 45 shares in the last quarter. Finally, Curry Webb Wealth Management LLC bought a new position in shares of Broadcom in the third quarter valued at $41,000. 76.43% of the stock is owned by institutional investors and hedge funds.

About Broadcom

Broadcom Inc. is a global technology company that designs and supplies semiconductor products and infrastructure software. Its semiconductor portfolio includes chips and components used in networking, broadband communications, wireless connectivity, data storage, and industrial applications. The company serves businesses across a range of industries, including communications, enterprise technology, and consumer electronics. Broadcom also provides infrastructure software, including products for virtualization, cloud computing, cybersecurity, and enterprise operations.