Broadcom (NASDAQ:AVGO) Hits New 52-Week High Following Insider Buying Activity

Key Points

• Broadcom's stock price reached a new 52-week high of $372.97 following significant insider buying activity by Director Harry L. You, who acquired multiple shares at various prices over recent days.
• Wall Street analysts have a generally positive outlook on Broadcom, with upgrades and target price increases from several firms, including HSBC's upgrade to "buy" with a price target of $400.
• Broadcom declared a quarterly dividend of $0.59 per share, to be paid on September 30th, with a current dividend yield of 0.6% and a payout ratio of 60.20%.

Broadcom Inc. (NASDAQ:AVGO - Get Free Report)'s stock price reached a new 52-week high during mid-day trading on Thursday following insider buying activity. The stock traded as high as $372.97 and last traded at $369.57, with a volume of 51004415 shares trading hands. The stock had previously closed at $336.67.

Specifically, Director Harry L. You acquired 500 shares of the stock in a transaction dated Wednesday, September 10th. The shares were bought at an average price of $363.38 per share, with a total value of $181,690.00. Following the purchase, the director directly owned 35,602 shares of the company's stock, valued at approximately $12,937,054.76. This trade represents a 1.42% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Harry L. You bought 1,000 shares of the firm's stock in a transaction on Tuesday, September 9th. The stock was purchased at an average price of $339.38 per share, with a total value of $339,380.00. Following the completion of the acquisition, the director owned 35,102 shares of the company's stock, valued at approximately $11,912,916.76. This trade represents a 2.93% increase in their ownership of the stock. The disclosure for this purchase can be found here. In other news, Director Harry L. You bought 2,050 shares of the firm's stock in a transaction on Monday, September 8th. The stock was bought at an average cost of $344.78 per share, for a total transaction of $706,799.00. Following the completion of the acquisition, the director directly owned 34,102 shares in the company, valued at $11,757,687.56. This represents a 6.40% increase in their position. The purchase was disclosed in a filing with the SEC, which is available at this hyperlink.

Wall Street Analysts Forecast Growth

Several analysts recently commented on the stock. HSBC upgraded shares of Broadcom from a "hold" rating to a "buy" rating and set a $400.00 price target for the company in a report on Tuesday, June 24th. Piper Sandler raised their price target on shares of Broadcom from $315.00 to $375.00 and gave the stock an "overweight" rating in a report on Friday, September 5th. Cantor Fitzgerald reiterated an "overweight" rating and issued a $300.00 target price on shares of Broadcom in a research note on Friday, June 6th. Deutsche Bank Aktiengesellschaft lifted their target price on shares of Broadcom from $300.00 to $350.00 and gave the company a "buy" rating in a research note on Friday, September 5th. Finally, Mizuho lifted their price target on shares of Broadcom from $320.00 to $355.00 and gave the company an "outperform" rating in a research report on Friday, September 5th. Three equities research analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and one has issued a Hold rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Buy" and a consensus target price of $351.92.

Broadcom Price Performance

The stock's 50-day moving average is $296.92 and its 200-day moving average is $239.85. The firm has a market cap of $1.74 trillion, a P/E ratio of 94.28, a price-to-earnings-growth ratio of 1.86 and a beta of 1.16. The company has a quick ratio of 1.37, a current ratio of 1.50 and a debt-to-equity ratio of 0.86.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced 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 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 quarter in the previous year, the firm posted $1.24 earnings per share. Broadcom's revenue was up 22.0% compared to the same quarter last year. Broadcom has set its Q4 2025 guidance at EPS. As a group, equities analysts anticipate that Broadcom Inc. will post 5.38 EPS for the current fiscal year.

Broadcom Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 30th. Shareholders of record on Monday, September 22nd will be paid a dividend of $0.59 per share. The ex-dividend date is Monday, September 22nd. This represents a $2.36 dividend on an annualized basis and a yield of 0.6%. Broadcom's payout ratio is currently 60.20%.

Institutional Investors Weigh In On Broadcom

A number of institutional investors have recently bought and sold shares of the business. Redwood Financial Network Corp boosted its stake in Broadcom by 1.7% during the second quarter. Redwood Financial Network Corp now owns 1,939 shares of the semiconductor manufacturer's stock worth $535,000 after buying an additional 33 shares in the last quarter. Sawyer & Company Inc boosted its stake in shares of Broadcom by 62.1% in the 2nd quarter. Sawyer & Company Inc now owns 94 shares of the semiconductor manufacturer's stock valued at $26,000 after purchasing an additional 36 shares in the last quarter. PFS Partners LLC boosted its stake in shares of Broadcom by 38.4% in the 2nd quarter. PFS Partners LLC now owns 137 shares of the semiconductor manufacturer's stock valued at $38,000 after purchasing an additional 38 shares in the last quarter. Costello Asset Management INC boosted its stake in shares of Broadcom by 1.5% in the 2nd quarter. Costello Asset Management INC now owns 2,528 shares of the semiconductor manufacturer's stock valued at $697,000 after purchasing an additional 38 shares in the last quarter. Finally, Walkner Condon Financial Advisors LLC boosted its stake in shares of Broadcom by 1.0% in the 2nd quarter. Walkner Condon Financial Advisors LLC now owns 3,944 shares of the semiconductor manufacturer's stock valued at $1,087,000 after purchasing an additional 38 shares in 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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