Broadcom (NASDAQ:AVGO) Raised to Buy at Wall Street Zen

Key Points

• Broadcom's rating was upgraded from "hold" to "buy" by Wall Street Zen, indicating increased confidence in the company's stock performance.
• Several analysts have raised their target prices for Broadcom, with Benchmark increasing its target from $315 to $385 and Oppenheimer from $325 to $360.
• Broadcom reported a revenue increase of 22% year-over-year, earning $15.95 billion in the last quarter, surpassing consensus estimates.

Wall Street Zen upgraded shares of Broadcom (NASDAQ:AVGO - Free Report) from a hold rating to a buy rating in a research report sent to investors on Saturday.

A number of other equities research analysts have also issued reports on the company. Oppenheimer reissued an "outperform" rating and issued a $360.00 target price (up previously from $325.00) on shares of Broadcom in a research report on Friday. The Goldman Sachs Group reiterated a "buy" rating and set a $340.00 price objective on shares of Broadcom in a report on Wednesday, August 13th. Piper Sandler raised their target price on Broadcom from $315.00 to $375.00 and gave the stock an "overweight" rating in a research note on Friday. Barclays increased their price objective on Broadcom from $265.00 to $400.00 and gave the stock an "overweight" rating in a report on Friday. Finally, Hsbc Global Res upgraded shares of Broadcom from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, June 24th. Three equities research analysts have rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat, Broadcom currently has an average rating of "Buy" and a consensus target price of $351.92.

Broadcom Price Performance

Shares of NASDAQ AVGO traded up $9.74 during midday trading on Friday, reaching $344.63. The company's stock had a trading volume of 29,443,762 shares, compared to its average volume of 26,042,813. 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 company has a market cap of $1.62 trillion, a price-to-earnings ratio of 87.94, a price-to-earnings-growth ratio of 2.38 and a beta of 1.16. Broadcom has a one year low of $134.90 and a one year high of $356.34. The company has a 50 day moving average price of $292.09 and a 200 day moving average price of $237.38.

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

Broadcom Dividend Announcement

The business also recently disclosed 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 of this dividend is Monday, September 22nd. This represents a $2.36 annualized dividend and a yield of 0.7%. Broadcom's dividend payout ratio is currently 60.20%.

Insider Buying and Selling

In related news, CFO Kirsten M. Spears sold 36,350 shares of Broadcom stock in a transaction on Tuesday, June 24th. The stock was sold at an average price of $261.27, for a total transaction of $9,497,164.50. Following the completion of the transaction, the chief financial officer directly owned 325,587 shares of the company's stock, valued at approximately $85,066,115.49. The trade was a 10.04% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, Director Justine Page sold 800 shares of Broadcom stock in a transaction on Thursday, August 14th. The shares were sold at an average price of $307.46, for a total transaction of $245,968.00. Following the completion of the transaction, the director owned 23,782 shares in the company, valued at approximately $7,312,013.72. This trade represents a 3.25% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 830,516 shares of company stock valued at $217,286,457 in the last quarter. Corporate insiders own 2.00% of the company's stock.

Institutional Trading of Broadcom

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Brighton Jones LLC lifted its holdings in shares of Broadcom by 21.8% during the 4th quarter. Brighton Jones LLC now owns 29,683 shares of the semiconductor manufacturer's stock worth $6,882,000 after acquiring an additional 5,322 shares during the period. Revolve Wealth Partners LLC boosted its position in shares of Broadcom by 10.4% in the 4th quarter. Revolve Wealth Partners LLC now owns 7,997 shares of the semiconductor manufacturer's stock worth $1,854,000 after purchasing an additional 756 shares in the last quarter. Bank Pictet & Cie Europe AG increased its position in Broadcom by 16.4% in the fourth quarter. Bank Pictet & Cie Europe AG now owns 221,199 shares of the semiconductor manufacturer's stock worth $51,283,000 after buying an additional 31,225 shares in the last quarter. Fullerton Fund Management Co Ltd. increased its stake in Broadcom by 45.7% in the 4th quarter. Fullerton Fund Management Co Ltd. now owns 201,574 shares of the semiconductor manufacturer's stock worth $46,733,000 after acquiring an additional 63,203 shares during the last quarter. Finally, Full Sail Capital LLC boosted its stake in shares of Broadcom by 8.9% during the fourth quarter. Full Sail Capital LLC now owns 3,179 shares of the semiconductor manufacturer's stock valued at $737,000 after purchasing an additional 259 shares during the period. 76.43% of the stock is owned by institutional investors.

Broadcom Company Profile

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.