Broadcom (NASDAQ:AVGO) Stock Price Up 2.9% Following Analyst Upgrade

Key Points

• Broadcom's stock rose 2.9% following an upgrade from Weiss Ratings, moving from a "hold" (c+) to a "buy" (b-) rating.
• Recent analyst reports have set target prices for Broadcom, with the highest at $460, indicating potential upside from current stock levels.
• Broadcom recently announced a quarterly dividend of $0.59 per share, contributing to an annualized yield of approximately 0.7%.

Shares of Broadcom Inc. (NASDAQ:AVGO - Get Free Report) shot up 2.9% during trading on Friday after Weiss Ratings upgraded the stock from a hold (c+) rating to a buy (b-) rating. The company traded as high as $358.30 and last traded at $354.13. 16,104,181 shares changed hands during mid-day trading, a decline of 38% from the average session volume of 25,777,000 shares. The stock had previously closed at $344.29.

A number of other research firms have also issued reports on AVGO. TD Cowen raised their price target on shares of Broadcom from $355.00 to $370.00 and gave the stock a "buy" rating in a research report on Friday, September 5th. Piper Sandler lifted their target price on shares of Broadcom from $315.00 to $375.00 and gave the company an "overweight" rating in a report on Friday, September 5th. Barclays set a $450.00 target price on shares of Broadcom and gave the company an "overweight" rating in a report on Tuesday, October 14th. The Goldman Sachs Group reaffirmed a "buy" rating and set a $340.00 target price on shares of Broadcom in a report on Wednesday, August 13th. Finally, Benchmark lifted their target price on shares of Broadcom from $315.00 to $385.00 and gave the company a "buy" rating in a report on Friday, September 5th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Buy" and an average target price of $372.52.

Insider Transactions at Broadcom

In related news, CEO Hock E. Tan sold 100,000 shares of Broadcom stock in a transaction on Tuesday, September 23rd. The shares were sold at an average price of $339.58, for a total value of $33,958,000.00. Following the sale, the chief executive officer owned 725,638 shares of the company's stock, valued at approximately $246,412,152.04. This trade represents a 12.11% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Mark David Brazeal sold 16,558 shares of Broadcom stock in a transaction on Wednesday, September 17th. The shares were sold at an average price of $347.61, for a total transaction of $5,755,726.38. Following the completion of the sale, the insider directly owned 329,302 shares in the company, valued at $114,468,668.22. This represents a 4.79% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have acquired 3,550 shares of company stock worth $1,227,869 and have sold 665,271 shares worth $225,464,248. 2.00% of the stock is owned by insiders.

Institutional Investors Weigh In On Broadcom

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Arthur M. Cohen & Associates LLC boosted its stake in Broadcom by 0.6% during the 3rd quarter. Arthur M. Cohen & Associates LLC now owns 4,781 shares of the semiconductor manufacturer's stock worth $1,577,000 after purchasing an additional 30 shares during the last quarter. McHugh Group LLC boosted its stake in Broadcom by 0.4% during the 3rd quarter. McHugh Group LLC now owns 8,433 shares of the semiconductor manufacturer's stock worth $2,782,000 after purchasing an additional 31 shares during the last quarter. Redwood Financial Network Corp boosted its stake in 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 purchasing an additional 33 shares during the last quarter. BancFirst Trust & Investment Management boosted its stake in Broadcom by 2.9% during the 3rd quarter. BancFirst Trust & Investment Management now owns 1,235 shares of the semiconductor manufacturer's stock worth $405,000 after purchasing an additional 35 shares during the last quarter. Finally, Heritage Oak Wealth Advisors LLC boosted its stake in Broadcom by 4.4% during the 3rd quarter. Heritage Oak Wealth Advisors LLC now owns 837 shares of the semiconductor manufacturer's stock worth $276,000 after purchasing an additional 35 shares during the last quarter. Institutional investors and hedge funds own 76.43% of the company's stock.

Broadcom Stock Performance

The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.37 and a current ratio of 1.50. The firm's 50 day simple moving average is $330.52 and its 200-day simple moving average is $273.74. The company has a market cap of $1.67 trillion, a price-to-earnings ratio of 90.34, a PEG ratio of 1.92 and a beta of 1.20.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its quarterly earnings results on Thursday, September 4th. The semiconductor manufacturer reported $1.69 earnings per share for the quarter, beating the consensus estimate of $1.66 by $0.03. The firm had revenue of $15.95 billion for the quarter, compared to analysts' expectations of $15.82 billion. Broadcom had a net margin of 31.59% and a return on equity of 36.60%. The company's revenue was up 22.0% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.24 EPS. Broadcom has set its Q4 2025 guidance at EPS. On average, sell-side analysts predict that Broadcom Inc. will post 5.38 EPS for the current year.

Broadcom Announces Dividend

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

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.

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.