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

Key Points

• Broadcom has a consensus analyst rating of “Moderate Buy”, based on coverage from 33 firms, with 28 buy ratings and an average 12-month price target of about $493.24.
• The stock remains a major AI infrastructure and growth story, with reports highlighting accelerating AI revenue, record bookings, and support from its extended Apple partnership through 2031.
• Broadcom recently beat quarterly expectations, posting $2.44 EPS on $22.19 billion in revenue, while the shares were trading up 1.3% and insiders/institutional investors continued to make mixed moves in the name.

Shares of Broadcom Inc. (NASDAQ:AVGO - Get Free Report) have been assigned a consensus recommendation of "Moderate Buy" from the thirty-three research firms that are presently covering the company, MarketBeat Ratings reports. Four research analysts have rated the stock with a hold rating, twenty-eight have assigned a buy rating and one has issued a strong buy rating on the company. The average 12-month price target among analysts that have issued ratings on the stock in the last year is $493.2414.

A number of brokerages recently issued reports on AVGO. Wall Street Zen upgraded shares of Broadcom from a "buy" rating to a "strong-buy" rating in a research note on Wednesday, July 1st. Oppenheimer restated an "outperform" rating and issued a $535.00 target price (up from $450.00) on shares of Broadcom in a research note 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 report on Thursday, June 4th. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and issued a $515.00 price objective (up from $430.00) on shares of Broadcom in a report on Thursday, June 4th. Finally, TD Cowen restated a "buy" rating and set a $500.00 price objective on shares of Broadcom in a research note on Thursday, June 4th.

Key Headlines Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom is being viewed as a major AI infrastructure winner, with recent coverage highlighting its accelerating AI revenue, record bookings, and strong customer partnerships. Snowflake vs. Broadcom: Which Enterprise AI Stock Is the Smarter Buy?
• Positive Sentiment: Wall Street commentary says Broadcom’s Apple agreement through 2031 is strategically positive and supports a durable revenue stream from custom chips and connectivity components. Why Broadcom (AVGO) Is Reinforcing Its Long-Term Growth With an Extended Apple Chip Partnership Through 2031
• Positive Sentiment: Analysts remain upbeat on Broadcom, with reports pointing to roughly 32.8% implied upside from the average price target and improving earnings estimate revisions. Wall Street Analysts See a 32.76% Upside in Broadcom Inc. (AVGO): Can the Stock Really Move This High?
• Positive Sentiment: Morgan Stanley called Broadcom a “core AI winner,” reinforcing the view that AVGO remains one of the main beneficiaries of AI spending. Broadcom is a 'core AI winner,' even as MediaTek encroaches, Morgan Stanley says
• Neutral Sentiment: Broadcom is also drawing heavy investor attention, which keeps the stock in focus but does not by itself change fundamentals. Broadcom Inc. (AVGO) Is a Trending Stock: Facts to Know Before Betting on It
• Negative Sentiment: Sentiment was tempered by reports that Broadcom executives sold shares, which can raise caution even though insider sales do not necessarily signal a business problem. Broadcom Executive Sells $10 Million in AVGO Stock. Is the Insider Sale a Warning Sign?
• Negative Sentiment: Reuters reported that five cloud business groups are urging EU regulators to suspend some Broadcom practices, adding a regulatory overhang to the name. Five cloud business groups urge EU interim measures against Broadcom

Broadcom Trading Up 1.3%

NASDAQ:AVGO opened at $394.28 on Thursday. The stock has a market cap of $1.88 trillion, a price-to-earnings ratio of 65.71, a price-to-earnings-growth ratio of 0.68 and a beta of 1.45. Broadcom has a one year low of $273.00 and a one year high of $495.00. The company has a debt-to-equity ratio of 0.71, a quick ratio of 2.01 and a current ratio of 2.24. The business's 50-day simple moving average is $403.23 and its 200 day simple moving average is $365.11.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its quarterly earnings data on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share for the quarter, beating analysts' consensus estimates of $2.40 by $0.04. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.The firm had revenue of $22.19 billion during the quarter, compared to analyst estimates of $22.13 billion. During the same quarter last year, the firm earned $1.58 EPS. Broadcom's quarterly revenue was up 47.9% on a year-over-year basis. As a group, sell-side analysts predict that Broadcom will post 10.24 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 22nd were given a dividend of $0.65 per share. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend was Monday, June 22nd. Broadcom's dividend payout ratio is currently 43.33%.

Insider Buying and Selling

In related news, Director Harry L. You purchased 1,000 shares of the company's stock in a transaction dated Thursday, June 11th. The shares were acquired at an average cost of $373.57 per share, for a total transaction of $373,570.00. Following the transaction, the director owned 38,466 shares of the company's stock, valued at $14,369,743.62. This trade represents a 2.67% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Justine Page sold 1,602 shares of the company's stock in a transaction on Monday, June 29th. The stock was sold at an average price of $373.86, for a total value of $598,923.72. Following the transaction, the director owned 17,426 shares of the company's stock, valued at approximately $6,514,884.36. The trade was a 8.42% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 61,644 shares of company stock valued at $24,016,214 over the last three months. 1.90% of the stock is owned by company insiders.

Hedge Funds Weigh In On Broadcom

Hedge funds and other institutional investors have recently made changes to their positions in the business. Trust Asset Management LLC boosted its position in Broadcom by 1.3% during the 2nd quarter. Trust Asset Management LLC now owns 52,549 shares of the semiconductor manufacturer's stock worth $19,850,000 after acquiring an additional 688 shares during the period. First Community Trust NA increased its stake in shares of Broadcom by 1.9% during the second quarter. First Community Trust NA now owns 5,971 shares of the semiconductor manufacturer's stock valued at $2,256,000 after acquiring an additional 111 shares during the period. Ballast Inc. raised its holdings in Broadcom by 39.5% during the second quarter. Ballast Inc. now owns 1,667 shares of the semiconductor manufacturer's stock worth $630,000 after purchasing an additional 472 shares in the last quarter. Regent Peak Wealth Advisors LLC raised its holdings in Broadcom by 0.5% during the second quarter. Regent Peak Wealth Advisors LLC now owns 16,174 shares of the semiconductor manufacturer's stock worth $6,110,000 after purchasing an additional 78 shares in the last quarter. Finally, Buska Wealth Management LLC acquired a new stake in Broadcom in the second quarter worth approximately $286,000. 76.43% of the stock is currently owned by institutional investors and hedge funds.

About Broadcom

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.