Broadcom (NASDAQ:AVGO) Shares Up 10.6% - Time to Buy?

Key Points

• Broadcom's shares increased by 10.6% during trading, reaching a high of $370.47 before settling at $372.48, following significant trading activity with over 21 million shares exchanged.
• A range of analysts have upgraded Broadcom's stock ratings, with three analysts giving a Strong Buy rating and a new average price target of $351.92, indicating bullish sentiment for the company's future.
• Broadcom recently declared a $0.59 quarterly dividend, which will be paid out on September 30th, signifying a steady commitment to shareholder returns despite recent insider stock sales.

Broadcom Inc. (NASDAQ:AVGO - Get Free Report) shares shot up 10.6% during trading on Wednesday . The company traded as high as $370.47 and last traded at $372.48. 21,574,614 shares were traded during mid-day trading, a decline of 17% from the average session volume of 26,092,373 shares. The stock had previously closed at $336.67.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on AVGO shares. Hsbc Global Res raised Broadcom from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, June 24th. UBS Group increased their price target on Broadcom from $290.00 to $345.00 and gave the company a "buy" rating in a research note on Monday, August 25th. Evercore ISI reissued an "outperform" rating and issued a $342.00 price target (up previously from $304.00) on shares of Broadcom in a research note on Thursday, September 4th. Arete Research raised Broadcom to a "strong-buy" rating in a research note on Monday, July 28th. Finally, KeyCorp increased their price target on Broadcom from $330.00 to $400.00 and gave the company an "overweight" rating in a research note on Friday, September 5th. Three equities research analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and one has given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Buy" and a consensus target price of $351.92.

Broadcom Price Performance

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 50 day simple moving average of $294.92 and a 200 day simple moving average of $238.95. The stock has a market cap of $1.72 trillion, a P/E ratio of 93.11, a PEG ratio of 1.89 and a beta of 1.16.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its quarterly earnings results on Thursday, September 4th. The semiconductor manufacturer reported $1.69 earnings per share for the quarter, topping the consensus estimate of $1.66 by $0.03. Broadcom had a net margin of 31.59% and a return on equity of 36.60%. The company had revenue of $15.95 billion during the quarter, compared to analysts' expectations of $15.82 billion. During the same period last year, the business earned $1.24 EPS. The business's quarterly revenue was up 22.0% on a year-over-year basis. Broadcom has set its Q4 2025 guidance at EPS. Sell-side analysts forecast that Broadcom Inc. will post 5.38 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 30th. Shareholders of record on Monday, September 22nd will be paid a $0.59 dividend. This represents a $2.36 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date is Monday, September 22nd. Broadcom's dividend payout ratio (DPR) is currently 60.20%.

Insider Activity at Broadcom

In other Broadcom news, Director Henry Samueli sold 473,898 shares of the stock in a transaction on Wednesday, June 25th. The shares were sold at an average price of $265.33, for a total value of $125,739,356.34. Following the completion of the sale, the director owned 38,188,575 shares in the company, valued at $10,132,574,604.75. This trade represents a 1.23% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Kirsten M. Spears sold 36,350 shares of the firm's stock in a transaction dated Tuesday, June 24th. The shares were sold at an average price of $261.27, for a total transaction of $9,497,164.50. Following the completion of the sale, the chief financial officer owned 325,587 shares of the company's stock, valued at $85,066,115.49. This trade represents a 10.04% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 820,516 shares of company stock worth $214,757,657. Insiders own 2.00% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. Redwood Financial Network Corp boosted its holdings in shares of Broadcom by 1.7% during the 2nd 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 period. Sawyer & Company Inc boosted its holdings 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 purchasing an additional 36 shares during the period. PFS Partners LLC boosted its holdings in 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 purchasing an additional 38 shares during the period. Costello Asset Management INC boosted its holdings in 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 purchasing an additional 38 shares during the period. Finally, Walkner Condon Financial Advisors LLC boosted its holdings in 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 purchasing an additional 38 shares during the period. 76.43% of the stock is owned by institutional investors and hedge funds.

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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