Broadcom (NASDAQ:AVGO) Receives "Buy" Rating from TD Cowen

Key Points

• TD Cowen reaffirmed its Buy rating on Broadcom and set a $500 price target, implying about 23.9% upside from the current share price.
• Broadcom’s latest quarterly results topped expectations, with EPS of $2.44 versus the $2.40 consensus and revenue of $22.19 billion, up 47.9% year over year.
• Analyst sentiment remains broadly constructive despite some mixed calls, with the stock carrying a Moderate Buy consensus and an average target price of $475.63.

Broadcom (NASDAQ:AVGO - Get Free Report)'s stock had its "buy" rating reissued by equities researchers at TD Cowen in a report issued on Thursday,Benzinga reports. They presently have a $500.00 price target on the semiconductor manufacturer's stock. TD Cowen's price objective would indicate a potential upside of 23.88% from the stock's current price.

Other equities research analysts also recently issued research reports about the company. Evercore restated an "outperform" rating and set a $582.00 price target on shares of Broadcom in a report on Tuesday, May 19th. Royal Bank Of Canada cut their price target on Broadcom from $370.00 to $340.00 and set a "sector perform" rating on the stock in a research report on Monday, March 2nd. KeyCorp reiterated an "overweight" rating and issued a $575.00 price objective (up from $500.00) on shares of Broadcom in a research note on Thursday. Zacks Research lowered shares of Broadcom from a "strong-buy" rating to a "hold" rating in a research report on Thursday, May 21st. Finally, Morgan Stanley set a $502.00 target price on shares of Broadcom in a report on Thursday. One analyst has rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating and four have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $475.63.

Broadcom Stock Down 15.8%

NASDAQ AVGO opened at $403.61 on Thursday. The business's fifty day simple moving average is $392.87 and its 200-day simple moving average is $361.19. Broadcom has a 52 week low of $241.11 and a 52 week high of $495.00. The company has a quick ratio of 1.73, a current ratio of 1.90 and a debt-to-equity ratio of 0.80. The firm has a market cap of $1.91 trillion, a PE ratio of 79.23, a P/E/G ratio of 0.99 and a beta of 1.41.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its quarterly earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.40 by $0.04. The business had revenue of $22.19 billion for the quarter, compared to analysts' expectations of $22.13 billion. Broadcom had a net margin of 36.57% and a return on equity of 38.61%. The business's quarterly revenue was up 47.9% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.58 earnings per share. As a group, equities analysts anticipate that Broadcom will post 9.91 earnings per share for the current year.

Insiders Place Their Bets

In other news, insider Mark David Brazeal sold 50,488 shares of the firm's 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 transaction, the insider directly owned 278,141 shares in the company, valued at $89,450,145.60. This trade represents a 15.36% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider S. Ram Velaga sold 38,841 shares of the business's stock in a transaction dated 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 sale, the insider owned 96,147 shares of the company's stock, valued at $30,920,875.20. The trade was a 28.77% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 324,282 shares of company stock valued at $106,425,249. 1.90% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Fullerton Advisors LLC raised its position in Broadcom by 1.3% in the first quarter. Fullerton Advisors LLC now owns 1,989 shares of the semiconductor manufacturer's stock worth $616,000 after acquiring an additional 25 shares in the last quarter. NORTHSTAR ASSET MANAGEMENT Co boosted its position in shares of Broadcom by 0.5% during the 1st quarter. NORTHSTAR ASSET MANAGEMENT Co now owns 5,350 shares of the semiconductor manufacturer's stock valued at $1,656,000 after purchasing an additional 25 shares in the last quarter. RFG Holdings Inc. grew its stake in shares of Broadcom by 0.3% in the 1st quarter. RFG Holdings Inc. now owns 8,499 shares of the semiconductor manufacturer's stock worth $2,631,000 after purchasing an additional 26 shares during the last quarter. Yukon Wealth Management Inc. grew its stake in shares of Broadcom by 1.1% in the 1st quarter. Yukon Wealth Management Inc. now owns 2,501 shares of the semiconductor manufacturer's stock worth $774,000 after purchasing an additional 26 shares during the last quarter. Finally, Capital Planning LLC raised its holdings in shares of Broadcom by 0.7% in the 1st quarter. Capital Planning LLC now owns 4,044 shares of the semiconductor manufacturer's stock worth $1,252,000 after purchasing an additional 28 shares in the last quarter. Institutional investors and hedge funds own 76.43% of the company's stock.

Key Headlines Impacting Broadcom

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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