Broadcom Inc. (NASDAQ:AVGO) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Wall Street remains bullish on Broadcom. The stock has a consensus rating of “Moderate Buy” from 33 analysts, with most rating it a buy and an average 1-year price target of about $490.
• Broadcom posted solid quarterly results. The company beat EPS expectations with $2.44 per share and slightly topped revenue forecasts at $22.19 billion, while revenue jumped 47.9% year over year.
• Broadcom is rewarding shareholders and drawing positive commentary. It declared a $0.65 quarterly dividend, and recent bullish headlines highlighted strong demand in data centers, AI infrastructure, and VMware growth potential.

Broadcom Inc. (NASDAQ:AVGO - Get Free Report) has been assigned a consensus recommendation of "Moderate Buy" from the thirty-three brokerages that are presently covering the company, Marketbeat reports. Three analysts have rated the stock with a hold recommendation, twenty-nine have assigned a buy recommendation and one has issued a strong buy recommendation on the company. The average 1-year price target among analysts that have covered the stock in the last year is $490.1333.

A number of brokerages have recently commented on AVGO. Citigroup restated a "buy" rating on shares of Broadcom in a report on Thursday, June 4th. Rosenblatt Securities restated a "buy" rating and set a $500.00 target price on shares of Broadcom in a report on Thursday, June 4th. UBS Group set a $485.00 price target on shares of Broadcom and gave the stock a "buy" rating in a research note on Thursday, June 4th. JPMorgan Chase & Co. upped their price target on shares of Broadcom from $500.00 to $580.00 and gave the stock an "overweight" rating in a research note on Thursday, June 4th. Finally, Evercore reiterated an "outperform" rating and issued a $582.00 price target on shares of Broadcom in a research note on Tuesday, May 19th.

Broadcom Stock Performance

Shares of AVGO stock opened at $411.35 on Friday. Broadcom has a 12 month low of $244.17 and a 12 month high of $495.00. The stock has a market cap of $1.96 trillion, a PE ratio of 68.56, a price-to-earnings-growth ratio of 0.72 and a beta of 1.41. The company has a current ratio of 2.24, a quick ratio of 2.01 and a debt-to-equity ratio of 0.71. The company's fifty day moving average price is $411.42 and its 200-day moving average price is $363.50.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, beating analysts' consensus estimates of $2.40 by $0.04. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The firm had revenue of $22.19 billion for the quarter, compared to analysts' expectations of $22.13 billion. During the same quarter in the previous year, the business posted $1.58 EPS. The company's quarterly revenue was up 47.9% on a year-over-year basis. On average, equities analysts expect that Broadcom will post 10.24 EPS for the current fiscal year.

Broadcom Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 22nd will be paid a $0.65 dividend. The ex-dividend date is Monday, June 22nd. This represents a $2.60 dividend on an annualized basis and a yield of 0.6%. Broadcom's payout ratio is presently 43.33%.

Key Headlines Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s debt tender offer was upsized to $3 billion after strong investor demand, signaling active balance-sheet management and reinforcing investor confidence. Broadcom Inc. Announces Results and Upsize of Offers to Purchase for Cash Certain of its Outstanding Debt Securities
• Positive Sentiment: JPMorgan remained bullish on Broadcom, saying investors should be “aggressive buyers,” which supports the view that the market may still be underestimating AVGO’s AI growth. AVGO stock jumps — JPMorgan says investors should be 'aggressive buyers' of Broadcom at current levels
• Positive Sentiment: Citi also called Broadcom a top chip stock on strong data-center demand, adding another bullish Wall Street view tied to AI infrastructure spending. Citi Touts Broadcom Inc. (AVGO) as a Top Chip Stock on Soaring Data Center Demand
• Positive Sentiment: One report said VMware, Broadcom’s second-largest business, may be set to accelerate, which could broaden growth beyond the company’s AI chip exposure. VMware: Broadcom's Second Biggest Business Set to Accelerate
• Neutral Sentiment: Insider Mark David Brazeal sold shares in two June transactions, but the sales were relatively small versus his remaining stake and do not necessarily change the broader investment thesis. Mark David Brazeal insider trading page
• Negative Sentiment: One analyst warned that chip valuations are getting stretched and suggested investors could consider alternatives, including Broadcom, which may temper enthusiasm if valuation concerns intensify. Analyst Warns Intel Valuation ‘Doesn't Make Sense.' Suggests NVIDIA, AMD, Micron, and Broadcom as Alternatives.

Insider Buying and Selling

In related news, Director Justine Page sold 2,018 shares of the company's stock in a transaction dated Wednesday, April 8th. The shares were sold at an average price of $353.00, for a total value of $712,354.00. Following the transaction, the director owned 18,164 shares in the company, valued at $6,411,892. The trade was a 10.00% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Mark David Brazeal sold 4,825 shares of the company's stock in a transaction dated Wednesday, June 17th. The stock was sold at an average price of $394.91, for a total transaction of $1,905,440.75. Following the completion of the transaction, the insider owned 269,989 shares in the company, valued at approximately $106,621,355.99. The trade was a 1.76% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 59,385 shares of company stock worth $21,301,057 over the last quarter. 1.90% of the stock is owned by insiders.

Hedge Funds Weigh In On Broadcom

Hedge funds have recently bought and sold shares of the company. Brown Brothers Harriman & Co. boosted its position in shares of Broadcom by 10.7% in the 3rd quarter. Brown Brothers Harriman & Co. now owns 77,411 shares of the semiconductor manufacturer's stock valued at $25,539,000 after purchasing an additional 7,499 shares during the period. Dana Investment Advisors Inc. boosted its position in shares of Broadcom by 2.6% in the 3rd quarter. Dana Investment Advisors Inc. now owns 173,759 shares of the semiconductor manufacturer's stock valued at $57,325,000 after purchasing an additional 4,442 shares during the period. Sovran Advisors LLC boosted its position in shares of Broadcom by 121.3% in the 4th quarter. Sovran Advisors LLC now owns 30,631 shares of the semiconductor manufacturer's stock valued at $10,507,000 after purchasing an additional 16,789 shares during the period. Thurston Springer Miller Herd & Titak Inc. boosted its position in shares of Broadcom by 406.1% in the 4th quarter. Thurston Springer Miller Herd & Titak Inc. now owns 11,994 shares of the semiconductor manufacturer's stock valued at $4,151,000 after purchasing an additional 9,624 shares during the period. Finally, Siligmueller & Norvid Wealth Advisors LLC acquired a new stake in shares of Broadcom in the 3rd quarter valued at about $762,000. Institutional investors own 76.43% of the company's stock.

Broadcom Company Profile

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.

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