Broadcom (NASDAQ:AVGO) Earns Outperform Rating from Analysts at Macquarie

Key Points

• Broadcom received an "outperform" rating from Macquarie with a price target of $420.00, indicating a potential upside of 16.71% from its previous close.
• Several other analysts have also given Broadcom favorable ratings, with a consensus target price of $356.48 and a majority rating it as a "Buy."
• Broadcom's recent quarterly earnings reported $15.95 billion in revenue and $1.69 earnings per share, exceeding analysts' expectations.

Research analysts at Macquarie started coverage on shares of Broadcom (NASDAQ:AVGO - Get Free Report) in a note issued to investors on Monday,Benzinga reports. The brokerage set an "outperform" rating and a $420.00 price target on the semiconductor manufacturer's stock. Macquarie's price objective suggests a potential upside of 16.71% from the stock's previous close.

A number of other equities research analysts have also weighed in on the stock. The Goldman Sachs Group restated a "buy" rating and issued a $340.00 price objective on shares of Broadcom in a report on Wednesday, August 13th. Deutsche Bank Aktiengesellschaft lifted their price target on shares of Broadcom from $300.00 to $350.00 and gave the stock a "buy" rating in a research note on Friday, September 5th. Redburn Atlantic began coverage on shares of Broadcom in a research note on Wednesday, May 28th. They set a "buy" rating and a $301.00 price target on the stock. Benchmark lifted their price target on shares of Broadcom from $315.00 to $385.00 and gave the stock a "buy" rating in a research note on Friday, September 5th. Finally, Barclays lifted their price target on shares of Broadcom from $265.00 to $400.00 and gave the stock an "overweight" rating in a research note on Friday, September 5th. Three research analysts have rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and one has issued a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Buy" and a consensus target price of $356.48.

Broadcom Price Performance

Shares of AVGO opened at $359.87 on Monday. Broadcom has a twelve month low of $138.10 and a twelve month high of $374.23. The firm's fifty day simple moving average is $300.31 and its 200-day simple moving average is $242.50. The firm has a market capitalization of $1.70 trillion, a price-to-earnings ratio of 91.80, a PEG ratio of 1.99 and a beta of 1.16. The company has a current ratio of 1.50, a quick ratio of 1.37 and a debt-to-equity ratio of 0.86.

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

Insider Activity

In related news, Director Harry L. You acquired 500 shares of the firm's stock in a transaction that occurred on Wednesday, September 10th. The shares were purchased at an average price of $363.38 per share, with a total value of $181,690.00. Following the completion of the acquisition, the director owned 35,602 shares in the company, valued at approximately $12,937,054.76. This represents a 1.42% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Henry Samueli sold 473,898 shares of the business's stock in a transaction dated Wednesday, June 25th. The stock was sold at an average price of $265.33, for a total transaction of $125,739,356.34. Following the sale, the director directly owned 38,188,575 shares in the company, valued at approximately $10,132,574,604.75. This represents a 1.23% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have bought 3,550 shares of company stock valued at $1,227,869 and have sold 850,112 shares valued at $234,654,209. Corporate insiders own 2.00% of the company's stock.

Hedge Funds Weigh In On Broadcom

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Valeo Financial Advisors LLC raised its position in Broadcom by 9.2% during the second quarter. Valeo Financial Advisors LLC now owns 66,268 shares of the semiconductor manufacturer's stock worth $18,487,000 after acquiring an additional 5,573 shares during the last quarter. WT Wealth Management acquired a new position in Broadcom during the second quarter worth about $325,000. Cambridge Financial Group LLC raised its position in Broadcom by 5.3% during the second quarter. Cambridge Financial Group LLC now owns 1,801 shares of the semiconductor manufacturer's stock worth $497,000 after acquiring an additional 90 shares during the last quarter. NWF Advisory Services Inc. raised its position in shares of Broadcom by 194.1% in the second quarter. NWF Advisory Services Inc. now owns 5,970 shares of the semiconductor manufacturer's stock valued at $1,646,000 after buying an additional 3,940 shares during the last quarter. Finally, SevenBridge Financial Group LLC raised its position in shares of Broadcom by 21.8% in the second quarter. SevenBridge Financial Group LLC now owns 14,404 shares of the semiconductor manufacturer's stock valued at $3,970,000 after buying an additional 2,577 shares during the last quarter. Institutional investors and hedge funds own 76.43% of the company's stock.

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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