Broadcom (NASDAQ:AVGO) Trading 1.9% Higher – Here’s What Happened

Broadcom Inc. (NASDAQ:AVGO)’s share price was up 1.9% during mid-day trading on Tuesday . The stock traded as high as $388.13 and last traded at $385.03. Approximately 33,097,139 shares traded hands during mid-day trading, an increase of 30% from the average daily volume of 25,463,602 shares. The stock had previously closed at $377.96.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on AVGO shares. Rosenblatt Securities lifted their target price on Broadcom from $340.00 to $400.00 and gave the company a “buy” rating in a research note on Friday, September 5th. Raymond James Financial set a $420.00 price objective on shares of Broadcom and gave the company an “outperform” rating in a research report on Thursday. Barclays set a $450.00 target price on shares of Broadcom and gave the stock an “overweight” rating in a research report on Tuesday, October 14th. Wall Street Zen cut shares of Broadcom from a “buy” rating to a “hold” rating in a report on Sunday. Finally, KeyCorp set a $460.00 target price on Broadcom in a research report on Monday, October 13th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating and two have issued a Hold rating to the company’s stock. According to MarketBeat.com, Broadcom presently has an average rating of “Buy” and an average target price of $374.21.

Broadcom Trading Up 1.9%

The company has a fifty day simple moving average of $348.43 and a two-hundred day simple moving average of $302.46. The company has a debt-to-equity ratio of 0.86, a current ratio of 1.50 and a quick ratio of 1.37. The company has a market capitalization of $1.82 trillion, a P/E ratio of 98.22, a price-to-earnings-growth ratio of 1.16 and a beta of 1.19.

Broadcom (NASDAQ:AVGO) last released its quarterly earnings results on Thursday, September 4th. The semiconductor manufacturer reported $1.69 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.66 by $0.03. Broadcom had a return on equity of 36.60% and a net margin of 31.59%.The company had revenue of $15.95 billion during the quarter, compared to the consensus estimate of $15.82 billion. During the same quarter in the prior year, the company posted $1.24 EPS. The firm’s revenue was up 22.0% on a year-over-year basis. Broadcom has set its Q4 2025 guidance at EPS. On average, analysts forecast that Broadcom Inc. will post 5.38 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, September 30th. Stockholders of record on Monday, September 22nd were given a $0.59 dividend. The ex-dividend date of this dividend was Monday, September 22nd. This represents a $2.36 dividend on an annualized basis and a dividend yield of 0.6%. Broadcom’s dividend payout ratio (DPR) is currently 60.20%.

Insiders Place Their Bets

In related news, CEO Hock E. Tan sold 100,000 shares of the company’s stock in a transaction on Tuesday, September 23rd. The shares were sold at an average price of $339.58, for a total transaction of $33,958,000.00. Following the completion of the sale, the chief executive officer directly owned 725,638 shares of the company’s stock, valued at approximately $246,412,152.04. This represents a 12.11% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Henry Samueli sold 368,797 shares of the firm’s stock in a transaction on Wednesday, September 24th. The shares were sold at an average price of $337.91, for a total transaction of $124,620,194.27. Following the completion of the transaction, the director owned 37,722,534 shares in the company, valued at $12,746,821,463.94. The trade was a 0.97% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders acquired 3,550 shares of company stock valued at $1,227,869 and sold 665,271 shares valued at $225,483,192. Corporate insiders own 2.00% of the company’s stock.

Institutional Trading of Broadcom

Hedge funds have recently added to or reduced their stakes in the business. Cheviot Value Management LLC bought a new stake in Broadcom in the 1st quarter valued at $25,000. Sawyer & Company Inc increased its holdings in shares of Broadcom by 62.1% during the 2nd quarter. Sawyer & Company Inc now owns 94 shares of the semiconductor manufacturer’s stock worth $26,000 after purchasing an additional 36 shares during the period. Longfellow Investment Management Co. LLC acquired a new position in shares of Broadcom during the second quarter valued at about $27,000. Legend Financial Advisors Inc. bought a new stake in shares of Broadcom in the second quarter valued at about $28,000. Finally, Teachers Insurance & Annuity Association of America acquired a new stake in Broadcom during the second quarter worth about $28,000. Institutional investors own 76.43% of the company’s stock.

About Broadcom

Broadcom Inc designs, develops, and supplies various semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. The company operates in two segments, Semiconductor Solutions and Infrastructure Software.