Broadcom (NASDAQ:AVGO) Rating Lowered to "Hold" at Zacks Research

Key Points

• Zacks Research downgraded Broadcom from strong-buy to hold, adding to a mixed analyst picture even as the broader consensus still sits at Moderate Buy with a $448.10 price target.
• Broadcom’s latest earnings were solid: it beat EPS and revenue estimates for the quarter, with revenue rising 29.5% year over year to $19.31 billion and EPS coming in at $2.05.
• Investor interest remains high, with institutions owning 76.43% of shares and recent insider selling totaling more than $106 million over the last quarter.

Broadcom (NASDAQ:AVGO - Get Free Report) was downgraded by stock analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued on Thursday,Zacks.com reports.

Other equities research analysts have also issued reports about the company. Benchmark reaffirmed a "buy" rating and set a $485.00 target price on shares of Broadcom in a research report on Thursday, March 5th. DA Davidson raised Broadcom to a "hold" rating in a research report on Friday, February 13th. Mizuho reaffirmed an "outperform" rating and set a $480.00 target price on shares of Broadcom in a research report on Thursday, April 16th. Erste Group Bank lowered Broadcom from a "buy" rating to a "hold" rating in a research report on Thursday, April 2nd. Finally, JPMorgan Chase & Co. raised their target price on Broadcom from $475.00 to $500.00 and gave the company an "overweight" rating in a research report on Thursday, March 5th. One research analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $448.10.

Broadcom Trading Down 0.1%

Shares of Broadcom stock opened at $414.14 on Thursday. Broadcom has a 1 year low of $226.18 and a 1 year high of $442.36. The firm has a market cap of $1.96 trillion, a PE ratio of 80.89, a P/E/G ratio of 0.86 and a beta of 1.43. The stock has a fifty day moving average price of $373.30 and a 200-day moving average price of $356.09. The company has a debt-to-equity ratio of 0.80, a current ratio of 1.90 and a quick ratio of 1.73.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.03 by $0.02. Broadcom had a return on equity of 38.61% and a net margin of 36.57%.The firm had revenue of $19.31 billion during the quarter, compared to analyst estimates of $19.10 billion. During the same period last year, the firm posted $1.60 EPS. The business's revenue was up 29.5% compared to the same quarter last year. Equities research analysts anticipate that Broadcom will post 9.91 EPS for the current year.

Insider Buying and Selling

In related news, insider Charlie B. Kawwas sold 10,000 shares of Broadcom stock in a transaction dated Wednesday, April 8th. The stock was sold at an average price of $345.23, for a total value of $3,452,300.00. Following the completion of the sale, the insider owned 787,184 shares of the company's stock, valued at approximately $271,759,532.32. This trade represents a 1.25% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, 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 completion of the sale, the insider directly owned 278,141 shares of the company's stock, valued at approximately $89,450,145.60. This trade represents a 15.36% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 324,282 shares of company stock worth $106,425,249 in the last quarter. 1.90% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Broadcom

Several large investors have recently added to or reduced their stakes in AVGO. Summitry LLC boosted its stake in Broadcom by 167.1% in the 1st quarter. Summitry LLC now owns 19,559 shares of the semiconductor manufacturer's stock worth $6,054,000 after purchasing an additional 12,235 shares during the period. WNY Asset Management LLC bought a new position in Broadcom in the 1st quarter worth about $658,000. Segall Bryant & Hamill LLC bought a new position in Broadcom in the 1st quarter worth about $105,244,000. Wellington Grp LLC boosted its stake in Broadcom by 10.6% in the 1st quarter. Wellington Grp LLC now owns 9,670 shares of the semiconductor manufacturer's stock worth $2,993,000 after purchasing an additional 924 shares during the period. Finally, Evolutionary Tree Capital Management LLC bought a new position in Broadcom in the 1st quarter worth about $2,012,000. Hedge funds and other institutional investors own 76.43% of the company's stock.

Key Stories Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s AI semiconductor business is showing rapid growth, with AI revenue more than doubling and stronger Q2 expectations tied to hyperscale demand. Broadcom Rides on Accelerating Semiconductor Revenues: What's Ahead?
• Positive Sentiment: Analysts continue to highlight Broadcom as one of Goldman Sachs’ strongest AI infrastructure bets, reinforcing optimism around its role in AI chips and networking. Why Broadcom (AVGO) Remains One of Goldman’s Strongest AI Infrastructure Bets
• Positive Sentiment: Broadcom is expanding its AI ecosystem through a $125 million research and talent hub with Meta and UCLA, plus packaging work with Applied Materials, which could support long-term growth. Broadcom’s AI Research Push Links Chip Packaging Advances To Growth Story
• Positive Sentiment: Several articles and analyst notes point to strong long-term upside, with Broadcom repeatedly described as a durable AI winner and a solid growth stock. Is Broadcom Inc. (AVGO) a Solid Growth Stock? 3 Reasons to Think "Yes"
• Neutral Sentiment: Commentary about Broadcom’s stock price in 2030 reflects bullish long-term AI expectations, but it does not appear to be a near-term catalyst. This Will be Broadcom’s Stock Price In 2030
• Neutral Sentiment: Broader market commentary and inflation worries have also been mentioned, but these articles do not identify a Broadcom-specific problem. Inflation Fears Weighed on Broadcom (AVGO) in Q1
• Negative Sentiment: One recent note says Broadcom remains “overcrowded,” suggesting valuation or positioning risk after a strong rally. Broadcom Is Far Too Overcrowded
• Negative Sentiment: Broadcom has also faced some regulatory scrutiny in the EU, which could create headline risk even as AI sentiment stays positive. Broadcom Inc. (AVGO) Challenges EU Regulators While Barclays Sees AI Upside

Broadcom Company Profile

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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