Broadcom (NASDAQ:AVGO) Lowered to "Hold" Rating by Wall Street Zen

Key Points

• Broadcom has been downgraded from a "buy" to a "hold" rating by Wall Street Zen, despite having an average rating of "buy" and several analysts maintaining positive ratings with higher price targets.
• The company's shares traded at $294.23, with analysts projecting a steady EPS growth, estimated at 5.38 for the current year, following a 20.2% year-over-year increase in quarterly revenue.
• Insider sales have occurred, including significant stock sales by director Henry Samueli and CEO Hock E. Tan, contributing to a total of 830,516 shares sold by insiders in the last three months.

Broadcom (NASDAQ:AVGO - Get Free Report) was downgraded by analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Monday.

Other equities research analysts have also issued research reports about the stock. Barclays increased their price objective on shares of Broadcom from $215.00 to $265.00 and gave the stock an "overweight" rating in a report on Monday, June 9th. Truist Financial set a $295.00 target price on shares of Broadcom and gave the company a "buy" rating in a research report on Friday, June 6th. Redburn Atlantic began coverage on shares of Broadcom in a research report on Wednesday, May 28th. They set a "buy" rating and a $301.00 target price on the stock. KeyCorp upped their target price on shares of Broadcom from $315.00 to $330.00 and gave the company an "overweight" rating in a research report on Tuesday, July 8th. Finally, JPMorgan Chase & Co. upped their target price on shares of Broadcom from $250.00 to $325.00 and gave the company an "overweight" rating in a research report on Friday, June 6th. Three investment analysts have rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Buy" and a consensus price target of $301.79.

Broadcom Price Performance

Shares of AVGO traded up $8.40 during trading hours on Monday, hitting $308.65. The stock had a trading volume of 18,879,518 shares, compared to its average volume of 17,950,588. The company's fifty day moving average is $286.79 and its two-hundred day moving average is $234.25. The company has a debt-to-equity ratio of 0.89, a current ratio of 1.08 and a quick ratio of 0.98. Broadcom has a 52 week low of $134.90 and a 52 week high of $317.35. The stock has a market capitalization of $1.45 trillion, a price-to-earnings ratio of 115.60, a P/E/G ratio of 2.14 and a beta of 1.15.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its earnings results on Thursday, June 5th. The semiconductor manufacturer reported $1.58 earnings per share for the quarter, topping the consensus estimate of $1.57 by $0.01. Broadcom had a net margin of 22.64% and a return on equity of 35.49%. The business had revenue of $15 billion for the quarter, compared to analyst estimates of $14.98 billion. During the same quarter in the prior year, the firm earned $10.96 EPS. The firm's quarterly revenue was up 20.2% compared to the same quarter last year. Broadcom has set its Q3 2025 guidance at EPS. On average, analysts anticipate that Broadcom will post 5.38 EPS for the current year.

Insiders Place Their Bets

In related news, Director Henry Samueli sold 473,898 shares of the stock in a transaction that occurred on Wednesday, June 25th. The shares were sold at an average price of $265.33, for a total value of $125,739,356.34. Following the sale, the director directly owned 38,188,575 shares in the company, valued at $10,132,574,604.75. This trade represents a 1.23% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Hock E. Tan sold 40,000 shares of the stock in a transaction that occurred on Thursday, June 26th. The shares were sold at an average price of $268.29, for a total transaction of $10,731,600.00. Following the completion of the sale, the chief executive officer owned 482,836 shares in the company, valued at $129,540,070.44. This represents a 7.65% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 830,516 shares of company stock worth $217,286,457 over the last ninety days. Company insiders own 2.00% of the company's stock.

Institutional Trading of Broadcom

Several hedge funds have recently bought and sold shares of the stock. Lavaca Capital LLC raised its holdings in Broadcom by 3.2% during the 2nd quarter. Lavaca Capital LLC now owns 10,107 shares of the semiconductor manufacturer's stock worth $2,786,000 after buying an additional 318 shares during the period. Cypress Capital Advisors LLC raised its holdings in Broadcom by 3.0% during the 2nd quarter. Cypress Capital Advisors LLC now owns 5,598 shares of the semiconductor manufacturer's stock worth $1,543,000 after buying an additional 162 shares during the period. Orion Porfolio Solutions LLC raised its holdings in Broadcom by 14.6% during the 2nd quarter. Orion Porfolio Solutions LLC now owns 268,161 shares of the semiconductor manufacturer's stock worth $73,919,000 after buying an additional 34,181 shares during the period. Seneca Financial Advisors LLC acquired a new stake in Broadcom during the 2nd quarter worth approximately $278,000. Finally, Munro Partners acquired a new stake in Broadcom during the 2nd quarter worth approximately $56,568,000. 76.43% of the stock is currently 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.