Broadcom (NASDAQ:AVGO) Posts Earnings Results, Beats Estimates By $0.01 EPS

Broadcom (NASDAQ:AVGO - Get Free Report) issued its quarterly earnings results on Thursday. The semiconductor manufacturer reported $1.58 earnings per share for the quarter, topping the consensus estimate of $1.57 by $0.01, Briefing.com reports. The company had revenue of $15 billion for the quarter, compared to analysts' expectations of $14.98 billion. Broadcom had a return on equity of 28.00% and a net margin of 11.43%. The firm's revenue for the quarter was up 20.2% on a year-over-year basis. During the same period in the prior year, the firm earned $10.96 earnings per share. Broadcom updated its Q3 2025 guidance to EPS.

Broadcom Stock Performance

Shares of Broadcom stock traded down $12.98 during trading on Friday, hitting $246.95. 41,055,118 shares of the company's stock traded hands, compared to its average volume of 30,998,721. The stock has a market capitalization of $1.16 trillion, a P/E ratio of 201.43, a PEG ratio of 2.29 and a beta of 1.11. The company has a debt-to-equity ratio of 0.98, a current ratio of 1.17 and a quick ratio of 1.07. The business has a 50-day simple moving average of $203.73 and a 200-day simple moving average of $206.22. Broadcom has a 1 year low of $128.50 and a 1 year high of $265.43.

Broadcom Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, June 30th. Investors of record on Friday, June 20th will be given a dividend of $0.59 per share. The ex-dividend date of this dividend is Friday, June 20th. This represents a $2.36 annualized dividend and a dividend yield of 0.96%. Broadcom's dividend payout ratio (DPR) is presently 113.46%.

Insiders Place Their Bets

In other Broadcom news, Director Henry Samueli sold 663,976 shares of the firm's stock in a transaction dated Wednesday, March 26th. The stock was sold at an average price of $181.60, for a total value of $120,578,041.60. Following the transaction, the director now directly owns 38,798,721 shares of the company's stock, valued at approximately $7,045,847,733.60. This trade represents a 1.68% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Mark David Brazeal sold 25,000 shares of the firm's stock in a transaction dated Friday, April 11th. The stock was sold at an average price of $180.00, for a total value of $4,500,000.00. Following the completion of the transaction, the insider now directly owns 465,956 shares in the company, valued at $83,872,080. The trade was a 5.09% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 720,576 shares of company stock valued at $131,249,694. Insiders own 2.00% of the company's stock.

Institutional Inflows and Outflows

A hedge fund recently raised its stake in Broadcom stock. Brighton Jones LLC lifted its stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 21.8% in the 4th quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 29,683 shares of the semiconductor manufacturer's stock after purchasing an additional 5,322 shares during the period. Brighton Jones LLC's holdings in Broadcom were worth $6,882,000 at the end of the most recent reporting period. Hedge funds and other institutional investors own 76.43% of the company's stock.

Broadcom announced that its board has approved a stock repurchase plan on Monday, April 7th that allows the company to buyback $10.00 billion in outstanding shares. This buyback authorization allows the semiconductor manufacturer to purchase up to 1.4% of its shares through open market purchases. Shares buyback plans are usually a sign that the company's board of directors believes its stock is undervalued.

Wall Street Analyst Weigh In

AVGO has been the topic of several recent research reports. Wells Fargo & Company upped their price target on Broadcom from $230.00 to $255.00 and gave the stock an "equal weight" rating in a research note on Friday. Seaport Res Ptn raised Broadcom to a "strong-buy" rating in a research note on Wednesday, April 30th. Cowen reissued a "buy" rating on shares of Broadcom in a research note on Friday. Susquehanna increased their target price on Broadcom from $280.00 to $300.00 and gave the stock a "positive" rating in a research note on Friday. Finally, Evercore ISI increased their target price on Broadcom from $267.00 to $304.00 and gave the stock an "outperform" rating in a research note on Friday. Three research analysts have rated the stock with a hold rating, twenty-six have assigned a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $270.25.

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.