Broadcom (NASDAQ:AVGO) Trading 4.1% Higher – What’s Next?

Broadcom Inc. (NASDAQ:AVGO)’s share price rose 4.1% during mid-day trading on Wednesday . The company traded as high as $359.69 and last traded at $354.42. Approximately 21,118,931 shares traded hands during mid-day trading, a decline of 16% from the average daily volume of 25,290,520 shares. The stock had previously closed at $340.50.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on the stock. UBS Group set a $415.00 price target on shares of Broadcom and gave the stock a “buy” rating in a research report on Tuesday, October 14th. Macquarie began coverage on Broadcom in a research report on Monday, September 15th. They issued an “outperform” rating and a $420.00 target price for the company. Bank of America boosted their price target on Broadcom from $300.00 to $400.00 and gave the company a “buy” rating in a report on Friday, September 5th. Sanford C. Bernstein raised their price objective on Broadcom from $295.00 to $400.00 and gave the stock an “outperform” rating in a research note on Friday, September 5th. Finally, KeyCorp set a $460.00 target price on shares of Broadcom in a research note on Monday, October 13th. Three investment analysts have rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat, Broadcom currently has an average rating of “Buy” and an average price target of $372.52.

Broadcom Stock Performance

The firm has a market capitalization of $1.67 trillion, a price-to-earnings ratio of 90.41, a P/E/G ratio of 1.37 and a beta of 1.19. The company has a 50-day moving average price of $349.10 and a 200-day moving average price of $298.19. The company has a quick ratio of 1.37, a current ratio of 1.50 and a debt-to-equity ratio of 0.86.

Broadcom (NASDAQ:AVGO) last announced its earnings results on Thursday, September 4th. The semiconductor manufacturer reported $1.69 earnings per share for the quarter, beating 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 firm had revenue of $15.95 billion for the quarter, compared to the consensus estimate of $15.82 billion. During the same quarter in the previous year, the business earned $1.24 EPS. The firm’s revenue for the quarter was up 22.0% on a year-over-year basis. Broadcom has set its Q4 2025 guidance at EPS. As a group, equities research analysts forecast that Broadcom Inc. will post 5.38 earnings per share for the current year.

Broadcom Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, September 30th. Investors of record on Monday, September 22nd were issued a dividend of $0.59 per share. The ex-dividend date of this dividend was Monday, September 22nd. This represents a $2.36 annualized dividend and a yield of 0.7%. Broadcom’s payout ratio is presently 60.20%.

Insider Activity

In other Broadcom news, CEO Hock E. Tan sold 148,154 shares of the company’s stock in a transaction dated Wednesday, September 10th. The shares were sold at an average price of $336.67, for a total value of $49,879,007.18. Following the completion of the sale, the chief executive officer directly owned 825,998 shares of the company’s stock, valued at approximately $278,088,746.66. This represents a 15.21% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Mark David Brazeal sold 16,558 shares of the firm’s stock in a transaction that occurred on Wednesday, September 17th. The stock was sold at an average price of $347.61, for a total transaction of $5,755,726.38. Following the sale, the insider owned 329,302 shares of the company’s stock, valued at $114,468,668.22. The trade was a 4.79% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders purchased 3,550 shares of company stock worth $1,227,869 and sold 665,271 shares worth $225,483,192. Company insiders own 2.00% of the company’s stock.

Institutional Investors Weigh In On Broadcom

Several large investors have recently modified their holdings of the stock. Assetmark Inc. lifted its stake in Broadcom by 2.4% during the second quarter. Assetmark Inc. now owns 1,703,487 shares of the semiconductor manufacturer’s stock worth $469,566,000 after purchasing an additional 39,466 shares during the last quarter. PARUS FINANCE UK Ltd raised its holdings in shares of Broadcom by 175.3% during the 1st quarter. PARUS FINANCE UK Ltd now owns 100,578 shares of the semiconductor manufacturer’s stock valued at $16,840,000 after buying an additional 64,038 shares in the last quarter. Geneos Wealth Management Inc. lifted its position in Broadcom by 27.9% in the 1st quarter. Geneos Wealth Management Inc. now owns 64,130 shares of the semiconductor manufacturer’s stock worth $10,737,000 after buying an additional 13,978 shares during the last quarter. Ethic Inc. boosted its stake in Broadcom by 1.6% in the second quarter. Ethic Inc. now owns 329,339 shares of the semiconductor manufacturer’s stock worth $88,708,000 after buying an additional 5,249 shares in the last quarter. Finally, Asio Capital LLC grew its position in Broadcom by 2.0% during the second quarter. Asio Capital LLC now owns 54,459 shares of the semiconductor manufacturer’s stock valued at $15,012,000 after acquiring an additional 1,089 shares during the last quarter. 76.43% of the stock is owned by institutional investors.

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.