Broadcom (NASDAQ:AVGO) Stock Price Expected to Rise, Piper Sandler Analyst Says

Key Points

• Broadcom's price target has been raised by Piper Sandler from $315.00 to $375.00, suggesting a potential upside of 22.51% from its current price.
• The company reported $1.69 earnings per share for the last quarter, exceeding analysts' expectations and showing a 22.0% increase in revenue year-over-year.
• Insider trading activity has seen significant share sales recently, with insiders liquidating a total of $217.3 million worth of stock over the past three months.

Broadcom (NASDAQ:AVGO - Get Free Report) had its price target raised by Piper Sandler from $315.00 to $375.00 in a research note issued to investors on Friday,Benzinga reports. The brokerage currently has an "overweight" rating on the semiconductor manufacturer's stock. Piper Sandler's target price suggests a potential upside of 11.98% from the company's current price.

AVGO has been the topic of several other reports. Hsbc Global Res upgraded Broadcom from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, June 24th. Citigroup raised their price objective on Broadcom from $285.00 to $315.00 and gave the stock a "buy" rating in a research note on Monday, July 7th. Morgan Stanley raised their price objective on Broadcom from $338.00 to $357.00 and gave the stock an "overweight" rating in a research note on Tuesday. Wells Fargo & Company raised their target price on Broadcom from $230.00 to $255.00 and gave the company an "equal weight" rating in a research note on Friday, June 6th. Finally, Erste Group Bank upgraded Broadcom from a "hold" rating to a "buy" rating in a research note on Thursday, June 5th. Three equities research analysts have rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and one has issued a Hold rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Buy" and an average price target of $351.00.

Broadcom Trading Up 9.4%

Shares of NASDAQ:AVGO traded up $28.79 during trading on Friday, reaching $334.89. 78,318,626 shares of the stock were exchanged, compared to its average volume of 17,635,120. The company has a debt-to-equity ratio of 0.89, a quick ratio of 0.98 and a current ratio of 1.08. Broadcom has a 12-month low of $134.90 and a 12-month high of $356.34. The firm has a market cap of $1.58 trillion, a price-to-earnings ratio of 85.43, a price-to-earnings-growth ratio of 2.38 and a beta of 1.16. The firm's 50-day moving average price is $292.09 and its 200 day moving average price is $237.31.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its quarterly earnings results on Thursday, September 4th. The semiconductor manufacturer reported $1.69 earnings per share for the quarter, topping analysts' consensus estimates of $1.66 by $0.03. The firm had revenue of $15.95 billion during the quarter, compared to analysts' expectations of $15.82 billion. Broadcom had a return on equity of 37.17% and a net margin of 31.59%.Broadcom's quarterly revenue was up 22.0% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.24 EPS. Broadcom has set its Q4 2025 guidance at EPS. On average, sell-side analysts anticipate that Broadcom will post 5.38 earnings per share for the current fiscal year.

Insider Activity at Broadcom

In other news, CEO Hock E. Tan sold 117,758 shares of the firm's stock in a transaction on Thursday, June 12th. The stock was sold at an average price of $252.91, for a total transaction of $29,782,175.78. Following the transaction, the chief executive officer directly owned 1,014,152 shares of the company's stock, valued at approximately $256,489,182.32. This trade represents a 10.40% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Charlie B. Kawwas sold 10,000 shares of the firm's stock in a transaction on Wednesday, June 11th. The shares were sold at an average price of $252.88, for a total value of $2,528,800.00. Following the transaction, the insider directly owned 789,784 shares in the company, valued at $199,720,577.92. This trade represents a 1.25% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 830,516 shares of company stock valued at $217,286,457. 2.00% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the company. SevenBridge Financial Group LLC grew its holdings in Broadcom by 21.8% during the second quarter. SevenBridge Financial Group LLC now owns 14,404 shares of the semiconductor manufacturer's stock worth $3,970,000 after acquiring an additional 2,577 shares during the period. American Trust grew its holdings in Broadcom by 72.1% during the second quarter. American Trust now owns 9,603 shares of the semiconductor manufacturer's stock worth $2,647,000 after acquiring an additional 4,023 shares during the period. PVG Asset Management Corp grew its holdings in Broadcom by 119.4% during the second quarter. PVG Asset Management Corp now owns 2,874 shares of the semiconductor manufacturer's stock worth $792,000 after acquiring an additional 1,564 shares during the period. FSC Wealth Advisors LLC acquired a new position in Broadcom during the second quarter worth about $74,000. Finally, Evolution Wealth Management Inc. acquired a new position in Broadcom during the second quarter worth about $36,000. 76.43% of the stock is owned by institutional investors and hedge funds.

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.