Broadcom (NASDAQ:AVGO) Shares Up 3.1% After Analyst Upgrade

Key Points

• Broadcom shares rose 3.1% in Monday trading after Wall Street Zen upgraded the stock from buy to strong-buy, lifting it as high as $396.20.
• Several other analysts have also turned more constructive on AVGO recently, with multiple price-target increases and an average Street rating of Moderate Buy with a $490.13 target.
• Broadcom continues to attract investor interest from its AI infrastructure story and strong fundamentals, including a recent earnings beat and a quarterly dividend of $0.65 per share.

Broadcom Inc. (NASDAQ:AVGO - Get Free Report) shot up 3.1% during mid-day trading on Monday after Wall Street Zen upgraded the stock from a buy rating to a strong-buy rating. The company traded as high as $396.20 and last traded at $393.94. 30,231,197 shares changed hands during trading, an increase of 16% from the average session volume of 26,030,656 shares. The stock had previously closed at $382.07.

A number of other research firms also recently issued reports on AVGO. Evercore reaffirmed an "outperform" rating and set a $582.00 price objective on shares of Broadcom in a report on Tuesday, May 19th. Benchmark lifted their price objective on shares of Broadcom from $485.00 to $545.00 and gave the stock a "buy" rating in a report on Thursday, June 4th. Royal Bank Of Canada boosted their price target on shares of Broadcom from $360.00 to $400.00 and gave the stock a "sector perform" rating in a research note on Thursday, June 4th. Mizuho boosted their price target on shares of Broadcom from $480.00 to $530.00 and gave the stock an "outperform" rating in a research note on Thursday, June 4th. Finally, DA Davidson boosted their price target on shares of Broadcom from $375.00 to $400.00 and gave the stock a "neutral" rating in a research note on Thursday, June 4th. One analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $490.13.

Insiders Place Their Bets

In other Broadcom news, Director Justine Page sold 2,018 shares of the business's stock in a transaction on Wednesday, April 8th. The shares were sold at an average price of $353.00, for a total value of $712,354.00. Following the completion of the sale, the director directly owned 18,164 shares of the company's stock, valued at $6,411,892. The trade was a 10.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CFO Kirsten M. Spears sold 36,292 shares of the business's stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $321.60, for a total transaction of $11,671,507.20. Following the completion of the transaction, the chief financial officer owned 327,760 shares in the company, valued at $105,407,616. The trade was a 9.97% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 215,970 shares of company stock valued at $71,104,945 over the last three months. 1.90% of the stock is currently owned by company insiders.

Key Headlines Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: The semiconductor and AI trade is off to a strong start, with chip and memory stocks surging and semiconductor ETFs drawing heavy trading, signaling renewed investor appetite for Broadcom and other AI infrastructure names. The AI Trade Starts Holiday-Shortened Week Strong as Chip and Memory Stocks Surge
• Positive Sentiment: Wall Street Zen upgraded Broadcom to Strong-Buy, adding a fresh bullish catalyst for the stock. Wall Street Zen Upgrades Broadcom NASDAQ: AVGO to Strong-Buy
• Positive Sentiment: Broadcom continues to benefit from AI infrastructure optimism, including coverage highlighting its AI XPV Platform and its role in custom compute and networking, which reinforces the company’s growth narrative. Broadcom (AVGO): AI XPV Platform Sharpens Its Role in Custom Compute and Networking Infrastructure
• Neutral Sentiment: Several new articles argue Broadcom could still have substantial upside, including a prediction that shares could reach $550 by 2027, but these are opinion pieces rather than direct company developments. Prediction: Can Broadcom Shares Hit $550 in 2027?
• Neutral Sentiment: Recent commentary also notes Broadcom’s strong Q2 results and AI growth, but says the stock sold off after cautious guidance, leaving investors focused on whether the valuation gap is narrowing or widening. Broadcom (AVGO) Stock After Record Q2 And Cautious AI Guidance Is The Valuation Gap Widening Or Closing
• Negative Sentiment: One analyst-style comparison piece said Lumentum looks better positioned than Broadcom in the near term, which may add some relative-performance pressure to AVGO. LITE vs. AVGO: Which AI Infrastructure Stock Is the Better Pick Now?

Hedge Funds Weigh In On Broadcom

Hedge funds have recently modified their holdings of the company. Brown Brothers Harriman & Co. raised its holdings in Broadcom by 10.7% in the third quarter. Brown Brothers Harriman & Co. now owns 77,411 shares of the semiconductor manufacturer's stock valued at $25,539,000 after buying an additional 7,499 shares during the period. Dana Investment Advisors Inc. raised its holdings in Broadcom by 2.6% in the third quarter. Dana Investment Advisors Inc. now owns 173,759 shares of the semiconductor manufacturer's stock valued at $57,325,000 after buying an additional 4,442 shares during the period. Sovran Advisors LLC raised its holdings in Broadcom by 121.3% in the fourth quarter. Sovran Advisors LLC now owns 30,631 shares of the semiconductor manufacturer's stock valued at $10,507,000 after buying an additional 16,789 shares during the period. Thurston Springer Miller Herd & Titak Inc. raised its holdings in Broadcom by 406.1% in the fourth quarter. Thurston Springer Miller Herd & Titak Inc. now owns 11,994 shares of the semiconductor manufacturer's stock valued at $4,151,000 after buying an additional 9,624 shares during the period. Finally, Siligmueller & Norvid Wealth Advisors LLC purchased a new position in Broadcom in the third quarter valued at approximately $762,000. Hedge funds and other institutional investors own 76.43% of the company's stock.

Broadcom Price Performance

The company's fifty day moving average is $404.26 and its 200 day moving average is $363.22. The company has a quick ratio of 2.01, a current ratio of 2.24 and a debt-to-equity ratio of 0.71. The stock has a market cap of $1.87 trillion, a PE ratio of 65.66, a price-to-earnings-growth ratio of 0.67 and a beta of 1.41.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its quarterly earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, beating the consensus estimate of $2.40 by $0.04. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The firm had revenue of $22.19 billion for the quarter, compared to analyst estimates of $22.13 billion. During the same quarter last year, the firm posted $1.58 earnings per share. Broadcom's revenue for the quarter was up 47.9% compared to the same quarter last year. As a group, sell-side analysts anticipate that Broadcom Inc. will post 10.24 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Monday, June 22nd will be given a $0.65 dividend. The ex-dividend date of this dividend is Monday, June 22nd. This represents a $2.60 annualized dividend and a yield of 0.7%. Broadcom's dividend payout ratio (DPR) is 43.33%.

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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