Broadcom (NASDAQ:AVGO) Stock Price Up 1.6% - Should You Buy?

Key Points

• Broadcom shares rose 1.6% in mid-day trading, reaching as high as $424.17 before settling around $417.76, with volume below its daily average.
• Fundamental and business news remained positive: Broadcom renewed its long-term technology partnership with LSEG and was named an EPIC Innovation Partner by Applied Materials, both reinforcing its role in AI and enterprise infrastructure.
• Wall Street stays constructive on AVGO, with multiple firms raising price targets and the consensus rating still at “Moderate Buy,” even as broader tech-sector weakness and higher yields create some headwinds.

Broadcom Inc. (NASDAQ:AVGO - Get Free Report)'s share price rose 1.6% during mid-day trading on Wednesday . The stock traded as high as $424.17 and last traded at $417.76. Approximately 15,733,532 shares were traded during mid-day trading, a decline of 36% from the average daily volume of 24,516,895 shares. The stock had previously closed at $411.07.

Key Stories Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom and London Stock Exchange Group (LSEG) renewed their long-term technology partnership for five more years, with Broadcom’s VMware Cloud Foundation set to support LSEG’s private cloud and AI/cloud workloads. The deal reinforces recurring software demand and highlights Broadcom’s role in mission-critical enterprise infrastructure. Article Title
• Positive Sentiment: Applied Materials named Broadcom as an EPIC Innovation Partner to accelerate advanced packaging R&D for next-generation AI chips. That supports the market’s view that Broadcom remains a key beneficiary of AI infrastructure spending. Article Title
• Positive Sentiment: Several Wall Street notes continue to back Broadcom, with recent reports keeping the stock in the “buy” camp and price targets clustering well above current levels. That ongoing analyst support can help offset short-term volatility. Article Title
• Neutral Sentiment: A market screen highlighted Broadcom as a high-ROE “cash cow” during a broader tech selloff, which is supportive for the investment case but not a direct catalyst. Article Title
• Neutral Sentiment: Broader market headlines point to a big-tech pullback and higher yields, which may be creating some headwinds for AVGO despite its strong fundamentals and AI growth narrative. Article Title

Analysts Set New Price Targets

AVGO has been the topic of several recent analyst reports. Seaport Research Partners restated a "neutral" rating on shares of Broadcom in a report on Wednesday, April 8th. Morgan Stanley raised their price target on Broadcom from $462.00 to $470.00 and gave the stock an "overweight" rating in a research note on Friday, March 6th. Benchmark reaffirmed a "buy" rating and issued a $485.00 price target on shares of Broadcom in a research note on Thursday, March 5th. UBS Group reaffirmed a "buy" rating and issued a $490.00 price target (up from $475.00) on shares of Broadcom in a research note on Monday. Finally, Wells Fargo & Company reaffirmed an "overweight" rating and issued a $545.00 price target (up from $430.00) on shares of Broadcom in a research note on Thursday, May 14th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $448.10.

Broadcom Price Performance

The company has a debt-to-equity ratio of 0.80, a current ratio of 1.90 and a quick ratio of 1.73. The company has a market cap of $1.98 trillion, a PE ratio of 81.59, a price-to-earnings-growth ratio of 0.87 and a beta of 1.43. The business has a 50 day moving average of $368.97 and a 200 day moving average of $355.08.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its quarterly earnings data on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 EPS for the quarter, beating the consensus estimate of $2.03 by $0.02. The business had revenue of $19.31 billion during the quarter, compared to analyst estimates of $19.10 billion. Broadcom had a return on equity of 38.61% and a net margin of 36.57%.The company's revenue for the quarter was up 29.5% on a year-over-year basis. During the same quarter last year, the firm posted $1.60 earnings per share. As a group, research analysts predict that Broadcom Inc. will post 9.97 EPS for the current year.

Broadcom Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Monday, March 23rd were given a dividend of $0.65 per share. The ex-dividend date of this dividend was Monday, March 23rd. This represents a $2.60 annualized dividend and a yield of 0.6%. Broadcom's dividend payout ratio (DPR) is currently 50.78%.

Insider Buying and Selling

In other news, CFO Kirsten M. Spears sold 36,292 shares of the firm's stock in a transaction on Tuesday, March 17th. The stock was 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 directly owned 327,760 shares in the company, valued at $105,407,616. This trade represents a 9.97% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Mark David Brazeal sold 50,488 shares of the firm's stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $321.60, for a total value of $16,236,940.80. Following the transaction, the insider owned 278,141 shares of the company's stock, valued at $89,450,145.60. The trade was a 15.36% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 324,282 shares of company stock valued at $106,425,249 over the last ninety days. Insiders own 1.90% of the company's stock.

Institutional Investors Weigh In On Broadcom

Large investors have recently bought and sold shares of the business. ROSS JOHNSON & Associates LLC increased its holdings in Broadcom by 1,320.0% in the 4th quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer's stock worth $25,000 after buying an additional 66 shares in the last quarter. Networth Advisors LLC increased its holdings in Broadcom by 546.2% in the 1st quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer's stock worth $26,000 after buying an additional 71 shares in the last quarter. SWAN Capital LLC increased its holdings in Broadcom by 261.9% in the 4th quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer's stock worth $26,000 after buying an additional 55 shares in the last quarter. JCIC Asset Management Inc. bought a new stake in shares of Broadcom during the 3rd quarter valued at about $31,000. Finally, Miller Global Investments LLC bought a new stake in shares of Broadcom during the 4th quarter valued at about $31,000. 76.43% of the stock is currently owned by institutional investors.

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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