Broadcom (NASDAQ:AVGO) Stock Price Up 1.4% - Here's Why

Key Points

• Broadcom's stock price rose 1.4%, trading at $338.18 after hitting a high of $347.61, with a significant drop in trading volume compared to the average.
• Multiple analysts have increased their price targets for Broadcom, with Piper Sandler and Mizuho both setting targets above $375, indicating positive market sentiment towards the stock.
• Broadcom recently reported Q4 revenue of $15.95 billion and earnings per share (EPS) of $1.69, both exceeding consensus estimates and showcasing a strong year-over-year revenue growth of 22%.

Shares of Broadcom Inc. (NASDAQ:AVGO - Get Free Report) rose 1.4% during trading on Thursday . The company traded as high as $347.61 and last traded at $338.18. Approximately 19,829,092 shares changed hands during trading, a decline of 24% from the average daily volume of 26,201,848 shares. The stock had previously closed at $333.39.

Wall Street Analyst Weigh In

AVGO has been the subject of a number of analyst reports. Piper Sandler boosted their target price on shares of Broadcom from $315.00 to $375.00 and gave the stock an "overweight" rating in a research note on Friday, September 5th. Sanford C. Bernstein boosted their target price on shares of Broadcom from $295.00 to $400.00 and gave the stock an "outperform" rating in a research note on Friday, September 5th. Argus boosted their target price 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. Evercore ISI reiterated an "outperform" rating and set a $342.00 target price (up previously from $304.00) on shares of Broadcom in a research note on Thursday, September 4th. Finally, Mizuho boosted their target price on shares of Broadcom from $355.00 to $410.00 and gave the stock an "outperform" rating in a research note on Friday, September 12th. Three research analysts have rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, Broadcom currently has an average rating of "Buy" and a consensus price target of $357.22.

Broadcom Stock Up 1.4%

The firm has a market cap of $1.60 trillion, a price-to-earnings ratio of 86.27, a P/E/G ratio of 1.83 and a beta of 1.20. The firm's 50 day moving average price is $316.48 and its two-hundred day moving average price is $255.31. The company has a debt-to-equity ratio of 0.86, a current ratio of 1.50 and a quick ratio of 1.37.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its quarterly earnings data 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 firm had revenue of $15.95 billion during the quarter, compared to the consensus estimate of $15.82 billion. Broadcom had a return on equity of 36.60% and a net margin of 31.59%.The firm's revenue was up 22.0% compared to the same quarter last year. During the same period in the prior year, the business 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 Announces Dividend

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

Insider Buying and Selling at Broadcom

In related news, Director Henry Samueli sold 368,797 shares of the stock in a transaction dated Wednesday, September 24th. The shares were sold at an average price of $337.91, for a total transaction of $124,620,194.27. Following the completion of the transaction, the director directly owned 37,722,534 shares of the company's stock, valued at $12,746,821,463.94. This represents a 0.97% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, CEO Hock E. Tan sold 148,154 shares of the firm's stock in a transaction dated Wednesday, September 10th. The shares were sold at an average price of $336.67, for a total transaction of $49,879,007.18. Following the completion of the sale, the chief executive officer owned 825,998 shares of the company's stock, valued at approximately $278,088,746.66. The trade was a 15.21% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders acquired 3,550 shares of company stock valued at $1,227,869 and sold 666,071 shares valued at $225,623,008. 2.00% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. GAMMA Investing LLC increased its holdings in Broadcom by 6.6% in the third quarter. GAMMA Investing LLC now owns 122,647 shares of the semiconductor manufacturer's stock valued at $40,463,000 after buying an additional 7,640 shares in the last quarter. Bank of New Hampshire increased its holdings in Broadcom by 3.3% in the third quarter. Bank of New Hampshire now owns 8,006 shares of the semiconductor manufacturer's stock valued at $2,641,000 after buying an additional 253 shares in the last quarter. Global Wealth Strategies & Associates increased its holdings in Broadcom by 27.4% in the third quarter. Global Wealth Strategies & Associates now owns 590 shares of the semiconductor manufacturer's stock valued at $195,000 after buying an additional 127 shares in the last quarter. Rowlandmiller & PARTNERS.ADV increased its holdings in Broadcom by 14.6% in the third quarter. Rowlandmiller & PARTNERS.ADV now owns 785 shares of the semiconductor manufacturer's stock valued at $259,000 after buying an additional 100 shares in the last quarter. Finally, BancFirst Trust & Investment Management grew its position in shares of Broadcom by 2.9% in the third quarter. BancFirst Trust & Investment Management now owns 1,235 shares of the semiconductor manufacturer's stock valued at $405,000 after purchasing an additional 35 shares during the last quarter. 76.43% of the stock is owned by hedge funds and other institutional investors.

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.