Broadcom (NASDAQ:AVGO) Trading 1.9% Higher – Should You Buy?

by · The Markets Daily

Shares of Broadcom Inc. (NASDAQ:AVGO – Get Free Report) rose 1.9% on Tuesday . The company traded as high as $388.13 and last traded at $385.03. Approximately 33,097,139 shares traded hands during trading, an increase of 30% from the average daily volume of 25,463,602 shares. The stock had previously closed at $377.96.

Analyst Ratings Changes

A number of equities research analysts have recently commented on AVGO shares. Wells Fargo & Company increased their target price on Broadcom from $255.00 to $345.00 and gave the stock an “equal weight” rating in a research note on Friday, September 5th. Oppenheimer restated an “outperform” rating and issued a $360.00 price objective (up from $325.00) on shares of Broadcom in a report on Friday, September 5th. Macquarie began coverage on Broadcom in a research note on Monday, September 15th. They set an “outperform” rating and a $420.00 target price on the stock. Argus lifted their target price on Broadcom from $285.00 to $375.00 and gave the stock a “buy” rating in a report on Monday, September 8th. Finally, Bank of America upped 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. Three investment analysts have rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Buy” and a consensus target price of $377.61.

View Our Latest Research Report on AVGO

Broadcom Stock Up 3.3%

The company’s 50-day moving average price is $349.96 and its 200 day moving average price is $304.36. The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.37 and a current ratio of 1.50. The stock has a market cap of $1.88 trillion, a PE ratio of 101.42, a price-to-earnings-growth ratio of 1.31 and a beta of 1.19.

Broadcom (NASDAQ:AVGO – Get Free Report) last announced its earnings results on Thursday, September 4th. The semiconductor manufacturer reported $1.69 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.66 by $0.03. Broadcom had a net margin of 31.59% and a return on equity of 36.60%. The company had revenue of $15.95 billion during the quarter, compared to analyst estimates of $15.82 billion. During the same period in the previous year, the business posted $1.24 earnings per share. The firm’s quarterly revenue was up 22.0% compared to the same quarter last year. Broadcom has set its Q4 2025 guidance at EPS. As a group, analysts forecast that Broadcom Inc. will post 5.38 EPS for the current fiscal year.

Broadcom Announces Dividend

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

Insiders Place Their Bets

In other Broadcom news, insider Mark David Brazeal sold 16,558 shares of the company’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 value of $5,755,726.38. Following the completion of the transaction, the insider directly owned 329,302 shares in the company, valued at $114,468,668.22. This represents a 4.79% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Justine Page sold 800 shares of Broadcom stock in a transaction that occurred on Friday, November 14th. The shares were sold at an average price of $331.14, for a total transaction of $264,912.00. Following the sale, the director owned 21,382 shares in the company, valued at approximately $7,080,435.48. The trade was a 3.61% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have bought 3,550 shares of company stock worth $1,227,869 and have sold 665,271 shares worth $225,483,192. 2.00% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Broadcom

Several institutional investors have recently bought and sold shares of the stock. Assetmark Inc. increased its holdings in shares of Broadcom by 2.4% in the 2nd quarter. Assetmark Inc. now owns 1,703,487 shares of the semiconductor manufacturer’s stock valued at $469,566,000 after acquiring an additional 39,466 shares during the period. PARUS FINANCE UK Ltd grew its position in Broadcom by 175.3% during the 1st quarter. PARUS FINANCE UK Ltd now owns 100,578 shares of the semiconductor manufacturer’s stock worth $16,840,000 after purchasing an additional 64,038 shares during the last quarter. Waterloo Capital L.P. increased its stake in Broadcom by 7.0% in the second quarter. Waterloo Capital L.P. now owns 48,361 shares of the semiconductor manufacturer’s stock valued at $13,331,000 after purchasing an additional 3,180 shares during the period. Geneos Wealth Management Inc. increased its stake in Broadcom by 27.9% in the first quarter. Geneos Wealth Management Inc. now owns 64,130 shares of the semiconductor manufacturer’s stock valued at $10,737,000 after purchasing an additional 13,978 shares during the period. Finally, RiverFront Investment Group LLC raised its holdings in shares of Broadcom by 107.6% in the second quarter. RiverFront Investment Group LLC now owns 16,524 shares of the semiconductor manufacturer’s stock valued at $4,555,000 after buying an additional 8,566 shares during the last quarter. 76.43% of the stock is owned by hedge funds and other institutional investors.

Broadcom Company Profile

(Get Free Report)

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.

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