Broadcom (NASDAQ:AVGO) Shares Gap Up - Here's What Happened

Key Points

• Broadcom's shares surged from a previous close of $336.67 to open at $351.52, last trading at $368.98 with over 14 million shares traded.
• A multitude of analysts have issued positive ratings for Broadcom, boosting target prices significantly, with a consensus rating of "Buy" and a target price of $351.92.
• The company reported earnings of $1.69 per share, exceeding expectations, and announced a quarterly dividend of $0.59, continuing its trend of providing shareholder returns.

Broadcom Inc. (NASDAQ:AVGO - Get Free Report) shares gapped up prior to trading on Wednesday . The stock had previously closed at $336.67, but opened at $351.52. Broadcom shares last traded at $368.98, with a volume of 14,095,737 shares changing hands.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on AVGO shares. Cowen restated a "buy" rating on shares of Broadcom in a report on Friday, June 6th. Bank of America raised their price objective on shares of Broadcom from $300.00 to $400.00 and gave the company a "buy" rating in a report on Friday, September 5th. Wells Fargo & Company raised their price objective on shares of Broadcom from $255.00 to $345.00 and gave the company an "equal weight" rating in a report on Friday, September 5th. Wall Street Zen upgraded shares of Broadcom from a "hold" rating to a "buy" rating in a research note on Saturday. Finally, Argus lifted their price target on shares of Broadcom from $285.00 to $375.00 and gave the stock a "buy" rating in a research note on Monday. Three research analysts have rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat.com, Broadcom currently has a consensus rating of "Buy" and a consensus target price of $351.92.

Broadcom Trading Up 8.6%

The company has a quick ratio of 1.37, a current ratio of 1.50 and a debt-to-equity ratio of 0.86. The company's fifty day moving average price is $294.92 and its two-hundred day moving average price is $238.95. The firm has a market cap of $1.72 trillion, a PE ratio of 93.27, a P/E/G ratio of 1.89 and a beta of 1.16.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its quarterly earnings results on Thursday, September 4th. The semiconductor manufacturer reported $1.69 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.66 by $0.03. The company had revenue of $15.95 billion during the quarter, compared to the consensus estimate 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 period last year, the firm earned $1.24 EPS. Broadcom has set its Q4 2025 guidance at EPS. As a group, sell-side analysts forecast that Broadcom Inc. will post 5.38 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

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

Insider Activity at Broadcom

In other news, CEO Hock E. Tan sold 117,758 shares of the company's stock in a transaction on Thursday, June 12th. The stock was sold at an average price of $252.91, for a total value of $29,782,175.78. Following the sale, the chief executive officer directly owned 1,014,152 shares in the company, valued at $256,489,182.32. This represents a 10.40% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Kirsten M. Spears sold 56,310 shares of Broadcom stock in a transaction dated Wednesday, June 18th. The stock was sold at an average price of $251.75, for a total transaction of $14,176,042.50. Following the sale, the chief financial officer owned 361,937 shares of the company's stock, valued at approximately $91,117,639.75. This trade represents a 13.46% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 820,516 shares of company stock valued at $214,757,657 in the last ninety days. 2.00% of the stock is owned by insiders.

Hedge Funds Weigh In On Broadcom

Several institutional investors have recently added to or reduced their stakes in the company. Redwood Financial Network Corp boosted its holdings 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 during the last quarter. Sawyer & Company Inc raised its position in 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 buying an additional 36 shares during the last quarter. PFS Partners LLC grew its holdings 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 acquiring an additional 38 shares in the last quarter. Costello Asset Management INC grew its holdings 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 acquiring an additional 38 shares in the last quarter. Finally, Walkner Condon Financial Advisors LLC grew its holdings 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 acquiring an additional 38 shares in the last quarter. 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.

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