Broadcom (NASDAQ:AVGO) Stock Price Up 9.9% - Here's What Happened

Key Points

• Broadcom's stock price surged by 9.9% during trading on Monday, reaching a high of $359.38, with nearly 44.3 million shares traded, significantly exceeding its average daily volume.
• Several analysts upgraded Broadcom's ratings recently, with Truist Financial increasing its price target to $365 and HSBC setting a target of $400, reflecting strong investor confidence.
• Broadcom reported earnings of $1.69 per share for the last quarter, surpassing estimates, and its revenue increased by 22% compared to the same quarter last year, which positively influenced market sentiment.

Broadcom Inc. (NASDAQ:AVGO - Get Free Report) rose 9.9% during trading on Monday . The stock traded as high as $359.38 and last traded at $356.70. Approximately 44,305,021 shares were traded during mid-day trading, an increase of 70% from the average daily volume of 26,095,906 shares. The stock had previously closed at $324.63.

Analyst Upgrades and Downgrades

AVGO has been the subject of several recent research reports. Truist Financial raised their price objective on shares of Broadcom from $295.00 to $365.00 and gave the company a "buy" rating in a research note on Friday, September 5th. Weiss Ratings cut shares of Broadcom from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday, October 8th. HSBC raised shares of Broadcom from a "hold" rating to a "buy" rating and set a $400.00 target price on the stock in a report on Tuesday, June 24th. Deutsche Bank Aktiengesellschaft raised their target price on shares of Broadcom from $300.00 to $350.00 and gave the company a "buy" rating in a report on Friday, September 5th. Finally, Wall Street Zen raised shares of Broadcom from a "hold" rating to a "buy" rating in a report on Saturday, September 6th. Three investment analysts have rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, Broadcom presently has a consensus rating of "Buy" and an average target price of $358.70.

Broadcom Trading Up 9.9%

The company has a debt-to-equity ratio of 0.86, a current ratio of 1.50 and a quick ratio of 1.37. The firm has a market capitalization of $1.68 trillion, a PE ratio of 90.99, a price-to-earnings-growth ratio of 1.80 and a beta of 1.20. The business's 50-day moving average price is $322.64 and its 200-day moving average price is $263.58.

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

Broadcom Dividend Announcement

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

Insider Activity at Broadcom

In other Broadcom news, insider Mark David Brazeal sold 16,558 shares of the business's 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 sale, the insider directly owned 329,302 shares in the company, valued at approximately $114,468,668.22. The trade was a 4.79% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Henry Samueli sold 368,797 shares of Broadcom stock in a transaction on Wednesday, September 24th. The stock was sold at an average price of $337.91, for a total value of $124,620,194.27. Following the transaction, the director directly owned 37,722,534 shares of the company's stock, valued at $12,746,821,463.94. This trade represents a 0.97% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders bought 3,550 shares of company stock worth $1,227,869 and sold 664,471 shares worth $225,184,128. Company insiders own 2.00% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. Barnes Dennig Private Wealth Management LLC acquired a new position in shares of Broadcom during the 1st quarter worth $25,000. Cheviot Value Management LLC acquired a new position in Broadcom in the 1st quarter valued at about $25,000. Inlight Wealth Management LLC acquired a new position in Broadcom in the 1st quarter valued at about $26,000. Sawyer & Company Inc raised its stake in Broadcom by 62.1% in the 2nd quarter. Sawyer & Company Inc now owns 94 shares of the semiconductor manufacturer's stock valued at $26,000 after purchasing an additional 36 shares during the last quarter. Finally, Longfellow Investment Management Co. LLC purchased a new stake in Broadcom in the 2nd quarter valued at about $27,000. Institutional investors and hedge funds own 76.43% of the company's stock.

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.

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