Broadcom (NASDAQ:AVGO) Price Target Raised to $400.00

Key Points

• Royal Bank of Canada raised Broadcom’s price target from $360 to $400 while keeping a “sector perform” rating, implying the stock is roughly fairly valued at current levels.
• Analyst sentiment remains broadly positive overall, with the consensus rating at Moderate Buy and an average price target of $475.63; several firms recently boosted targets, though a few downgraded the stock to hold.
• Broadcom’s latest quarter topped expectations, reporting $2.44 EPS and $22.19 billion in revenue, with revenue up 47.9% year over year, underscoring strong business momentum despite recent share-price weakness.

Broadcom (NASDAQ:AVGO - Get Free Report) had its price target lifted by investment analysts at Royal Bank Of Canada from $360.00 to $400.00 in a note issued to investors on Thursday,Benzinga reports. The brokerage presently has a "sector perform" rating on the semiconductor manufacturer's stock. Royal Bank Of Canada's price target indicates a potential downside of 0.89% from the stock's current price.

A number of other equities research analysts have also commented on the stock. Erste Group Bank lowered shares of Broadcom from a "buy" rating to a "hold" rating in a report on Thursday, April 2nd. Wall Street Zen cut shares of Broadcom from a "buy" rating to a "hold" rating in a report on Saturday, May 30th. Benchmark lifted their price target on shares of Broadcom from $485.00 to $545.00 and gave the stock a "buy" rating in a research note on Thursday. Weiss Ratings upgraded Broadcom from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Wednesday, May 27th. Finally, UBS Group set a $485.00 price target on Broadcom in a report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $475.63.

Broadcom Stock Down 15.8%

Shares of AVGO opened at $403.61 on Thursday. The company has a market capitalization of $1.91 trillion, a PE ratio of 79.23, a PEG ratio of 0.99 and a beta of 1.41. The stock's 50-day moving average price is $392.87 and its two-hundred day moving average price is $361.19. The company has a current ratio of 1.90, a quick ratio of 1.73 and a debt-to-equity ratio of 0.80. Broadcom has a 12 month low of $241.11 and a 12 month high of $495.00.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its quarterly earnings data on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, topping analysts' consensus estimates of $2.40 by $0.04. The firm had revenue of $22.19 billion during the quarter, compared to analyst estimates of $22.13 billion. Broadcom had a return on equity of 38.61% and a net margin of 36.57%.The company's revenue for the quarter was up 47.9% on a year-over-year basis. During the same period in the previous year, the company posted $1.58 EPS. On average, analysts anticipate that Broadcom will post 9.91 EPS for the current year.

Insider Activity at Broadcom

In related news, insider Mark David Brazeal sold 50,488 shares of Broadcom stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $321.60, for a total value of $16,236,940.80. Following the sale, the insider directly owned 278,141 shares in the company, valued at approximately $89,450,145.60. The trade was a 15.36% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, insider S. Ram Velaga sold 38,841 shares of the firm's stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $321.60, for a total value of $12,491,265.60. Following the transaction, the insider owned 96,147 shares of the company's stock, valued at approximately $30,920,875.20. This represents a 28.77% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 324,282 shares of company stock worth $106,425,249. Corporate insiders own 1.90% of the company's stock.

Institutional Trading of Broadcom

Several hedge funds have recently made changes to their positions in AVGO. Vanguard Group Inc. increased its position in shares of Broadcom by 0.8% during the fourth quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer's stock worth $167,064,997,000 after purchasing an additional 3,919,715 shares in the last quarter. State Street Corp lifted its holdings in shares of Broadcom by 2.7% in the fourth quarter. State Street Corp now owns 190,084,351 shares of the semiconductor manufacturer's stock valued at $65,788,194,000 after purchasing an additional 5,040,801 shares in the last quarter. Geode Capital Management LLC lifted its stake in shares of Broadcom by 1.4% during the 4th quarter. Geode Capital Management LLC now owns 111,277,280 shares of the semiconductor manufacturer's stock worth $38,396,634,000 after purchasing an additional 1,548,699 shares during the period. Price T Rowe Associates Inc. MD increased its stake in Broadcom by 3.0% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 85,546,083 shares of the semiconductor manufacturer's stock worth $29,607,500,000 after acquiring an additional 2,491,644 shares during the last quarter. Finally, Norges Bank purchased a new stake in shares of Broadcom in the fourth quarter worth about $24,252,196,000. Institutional investors and hedge funds own 76.43% of the company's stock.

Broadcom News Summary

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Cantor Fitzgerald reaffirmed its overweight rating on Broadcom and set a $525 price target, implying upside from current levels. Benzinga
• Positive Sentiment: Benchmark raised its price target to $545 from $485 and kept a buy rating, citing strong earnings momentum. Benzinga
• Positive Sentiment: Broadcom reported record AI semiconductor revenue of $10.8 billion, up sharply year over year, reinforcing its role as a key AI infrastructure supplier. PR Newswire
• Neutral Sentiment: Broadcom announced a quarterly dividend of $0.65 per share, which supports the stock’s income appeal but is not a major near-term catalyst. PR Newswire
• Negative Sentiment: Investors sold the stock after Broadcom’s revenue came in below the market’s elevated expectations, pressuring sentiment across semiconductors. Reuters
• Negative Sentiment: Chipmaker shares, including Broadcom, fell in premarket trading as the market reassessed the durability of the AI trade after earnings. CNBC

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.

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