Broadcom (NASDAQ:AVGO) Shares Gap Up - Time to Buy?

Key Points

• Broadcom shares surged from a closing price of $324.63 to an opening price of $352.77, currently trading at $354.24 with significant volume.
• Analysts have raised their price targets for Broadcom, with KeyCorp setting a new target of $420.00 and a total of 32 analysts recommending a "Buy" rating.
• The company recently declared a quarterly dividend of $0.59 per share, with a dividend yield of 0.7%.

Shares of Broadcom Inc. (NASDAQ:AVGO - Get Free Report) gapped up before the market opened on Monday . The stock had previously closed at $324.63, but opened at $352.77. Broadcom shares last traded at $354.24, with a volume of 16,672,660 shares traded.

Analysts Set New Price Targets

Several research analysts have weighed in on the stock. KeyCorp reaffirmed an "overweight" rating and set a $420.00 target price (up previously from $400.00) on shares of Broadcom in a research note on Tuesday, September 30th. 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, September 8th. Citigroup boosted their price objective on shares of Broadcom from $315.00 to $350.00 and gave the stock a "buy" rating in a research report on Friday, September 5th. Benchmark upped their target price on shares of Broadcom from $315.00 to $385.00 and gave the company a "buy" rating in a report on Friday, September 5th. Finally, UBS Group increased their price objective on Broadcom from $290.00 to $345.00 and gave the stock a "buy" rating in a research report on Monday, August 25th. Three analysts have rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Buy" and a consensus target price of $357.22.

Broadcom Stock Up 9.9%

The firm has a market cap of $1.68 trillion, a price-to-earnings ratio of 90.90, a P/E/G ratio of 1.80 and a beta of 1.20. The company has a debt-to-equity ratio of 0.86, a current ratio of 1.50 and a quick ratio of 1.37. The firm's fifty day moving average is $322.64 and its two-hundred day moving average is $263.58.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its earnings results on Thursday, September 4th. The semiconductor manufacturer reported $1.69 EPS for the quarter, beating the consensus estimate of $1.66 by $0.03. The business had revenue of $15.95 billion during 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 business's quarterly revenue was up 22.0% on a year-over-year basis. During the same period in the prior year, the business earned $1.24 earnings per share. Broadcom has set its Q4 2025 guidance at EPS. On average, sell-side analysts expect that Broadcom Inc. will post 5.38 EPS for the current fiscal year.

Broadcom Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, September 30th. Investors of record on Monday, September 22nd were given a dividend of $0.59 per share. This represents a $2.36 annualized dividend and a yield of 0.7%. The ex-dividend date of this dividend was Monday, September 22nd. Broadcom's dividend payout ratio (DPR) is presently 60.20%.

Insiders Place Their Bets

In other news, insider Mark David Brazeal sold 16,558 shares of Broadcom stock in a transaction dated Wednesday, September 17th. The stock was sold at an average price of $347.61, for a total value of $5,755,726.38. Following the transaction, the insider directly owned 329,302 shares in the company, valued at approximately $114,468,668.22. The trade was a 4.79% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Hock E. Tan sold 148,154 shares of the business's stock in a transaction dated Wednesday, September 10th. The shares were sold at an average price of $336.67, for a total value of $49,879,007.18. Following the transaction, the chief executive officer owned 825,998 shares in the company, valued at $278,088,746.66. This represents a 15.21% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders purchased 3,550 shares of company stock worth $1,227,869 and sold 664,471 shares worth $225,184,128. 2.00% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Broadcom

Hedge funds have recently added to or reduced their stakes in the company. SK Wealth Management LLC bought a new position in shares of Broadcom during the third quarter worth $227,000. ABLE Financial Group LLC lifted its position in Broadcom by 1.2% during the 3rd quarter. ABLE Financial Group LLC now owns 11,198 shares of the semiconductor manufacturer's stock worth $3,694,000 after buying an additional 128 shares in the last quarter. CHICAGO TRUST Co NA raised its stake in shares of Broadcom by 13.3% during the 3rd quarter. CHICAGO TRUST Co NA now owns 25,908 shares of the semiconductor manufacturer's stock worth $8,547,000 after purchasing an additional 3,047 shares in the last quarter. Diversified Enterprises LLC raised its position in Broadcom by 1.4% during the third quarter. Diversified Enterprises LLC now owns 7,855 shares of the semiconductor manufacturer's stock worth $2,591,000 after acquiring an additional 111 shares in the last quarter. Finally, Navigoe LLC raised its stake in Broadcom by 515.0% in the third quarter. Navigoe LLC now owns 123 shares of the semiconductor manufacturer's stock valued at $40,000 after buying an additional 103 shares during the period. Institutional investors own 76.43% of the company's stock.

About Broadcom

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.