Broadcom (NASDAQ:AVGO) Downgraded to Hold Rating by Wall Street Zen

Key Points

• Broadcom has been downgraded by Wall Street Zen from a "buy" rating to a "hold" rating, impacting investor sentiment.
• Despite the downgrade, analysts have set a target price of $460 for Broadcom shares, suggesting potential for over 30% upside.
• Insider trading activity includes CEO Hock E. Tan selling over 148,000 shares, reflecting a decrease in ownership of the company stock.

Broadcom (NASDAQ:AVGO - Get Free Report) was downgraded by analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued on Saturday.

AVGO has been the topic of several other reports. Truist Financial boosted their target price on shares of Broadcom from $295.00 to $365.00 and gave the stock a "buy" rating in a research report on Friday, September 5th. Rosenblatt Securities raised their price objective on shares of Broadcom from $340.00 to $400.00 and gave the company a "buy" rating in a research note on Friday, September 5th. Benchmark upped their target price on shares of Broadcom from $315.00 to $385.00 and gave the stock a "buy" rating in a research report on Friday, September 5th. Citigroup reaffirmed a "buy" rating and issued a $415.00 target price (up from $350.00) on shares of Broadcom in a report on Tuesday, October 14th. Finally, Weiss Ratings upgraded shares of Broadcom from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Friday. Three investment analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating and one has given a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of "Buy" and an average target price of $372.52.

Broadcom Price Performance

Shares of AVGO opened at $354.13 on Friday. The company has a current ratio of 1.50, a quick ratio of 1.37 and a debt-to-equity ratio of 0.86. The stock's 50 day moving average is $331.47 and its two-hundred day moving average is $275.11. Broadcom has a twelve month low of $138.10 and a twelve month high of $374.23. The firm has a market capitalization of $1.67 trillion, a PE ratio of 90.34, a P/E/G ratio of 1.94 and a beta of 1.20.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its earnings results on Thursday, September 4th. The semiconductor manufacturer reported $1.69 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.66 by $0.03. Broadcom had a return on equity of 36.60% and a net margin of 31.59%.The business had revenue of $15.95 billion during the quarter, compared to the consensus estimate of $15.82 billion. During the same period in the prior year, the business posted $1.24 EPS. The company's revenue for the quarter was up 22.0% on a year-over-year basis. Broadcom has set its Q4 2025 guidance at EPS. Research analysts anticipate that Broadcom will post 5.38 earnings per share for the current year.

Insider Buying and Selling at Broadcom

In related news, CEO Hock E. Tan sold 148,154 shares of the firm's stock in a transaction that occurred on Wednesday, September 10th. The shares were sold at an average price of $336.67, for a total transaction of $49,879,007.18. Following the sale, the chief executive officer owned 825,998 shares in the company, valued at approximately $278,088,746.66. This trade represents a 15.21% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Kirsten M. Spears sold 7,498 shares of the business's stock in a transaction on Wednesday, September 17th. The shares were sold at an average price of $347.66, for a total value of $2,606,754.68. Following the completion of the transaction, the chief financial officer owned 313,330 shares of the company's stock, valued at $108,932,307.80. This trade represents a 2.34% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have bought 3,550 shares of company stock valued at $1,227,869 and have sold 665,271 shares valued at $225,464,248. 2.00% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Broadcom

Several large investors have recently added to or reduced their stakes in the business. Barnes Dennig Private Wealth Management LLC purchased a new position in Broadcom during the first quarter worth approximately $25,000. Cheviot Value Management LLC acquired a new stake in shares of Broadcom during the 1st quarter worth $25,000. Sawyer & Company Inc raised its position in shares of Broadcom by 62.1% in the 2nd quarter. Sawyer & Company Inc now owns 94 shares of the semiconductor manufacturer's stock worth $26,000 after buying an additional 36 shares during the period. Longfellow Investment Management Co. LLC acquired a new position in Broadcom in the second quarter valued at $27,000. Finally, Legend Financial Advisors Inc. purchased a new stake in Broadcom during the second quarter valued at about $28,000. 76.43% of the stock is currently owned by hedge funds and other 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.

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