Broadcom (NASDAQ:AVGO) Trading 1.3% Higher After Analyst Upgrade

Key Points

• Broadcom's shares increased by 1.3% following an upgrade from UBS Group, which raised their price target from $290.00 to $345.00.
• Broadcom currently holds a consensus rating of Buy from analysts, with three having rated it as Strong Buy and an average price target of $300.96.
• Insider activity has been notable, with CEO Hock E. Tan selling 117,758 shares at an average price of $252.91, decreasing his ownership by 10.40%.

Shares of Broadcom Inc. (NASDAQ:AVGO - Get Free Report) rose 1.3% during mid-day trading on Tuesday after UBS Group raised their price target on the stock from $290.00 to $345.00. UBS Group currently has a buy rating on the stock. Broadcom traded as high as $298.80 and last traded at $297.97. Approximately 4,276,840 shares were traded during mid-day trading, a decline of 83% from the average daily volume of 25,770,172 shares. The stock had previously closed at $294.23.

Several other research firms also recently weighed in on AVGO. Seaport Res Ptn upgraded shares of Broadcom to a "strong-buy" rating in a report on Wednesday, April 30th. Erste Group Bank upgraded shares of Broadcom from a "hold" rating to a "buy" rating in a report on Thursday, June 5th. Citigroup lifted their target price on shares of Broadcom from $285.00 to $315.00 and gave the company a "buy" rating in a report on Monday, July 7th. Mizuho lifted their target price on shares of Broadcom from $315.00 to $320.00 and gave the company an "outperform" rating in a report on Wednesday, July 16th. Finally, Morgan Stanley set a $338.00 target price on shares of Broadcom and gave the company an "overweight" rating in a report on Wednesday, July 30th. Three investment analysts have rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat, Broadcom currently has an average rating of "Buy" and a consensus price target of $300.96.

Insider Activity

In related news, CEO Hock E. Tan sold 117,758 shares of the stock in a transaction dated Thursday, June 12th. The shares were sold at an average price of $252.91, for a total transaction of $29,782,175.78. Following the completion of the transaction, the chief executive officer directly owned 1,014,152 shares of the company's stock, valued at $256,489,182.32. This represents a 10.40% 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, insider Charlie B. Kawwas sold 10,000 shares of the company's stock in a transaction dated Wednesday, June 11th. The stock was sold at an average price of $252.88, for a total transaction of $2,528,800.00. Following the transaction, the insider owned 789,784 shares in the company, valued at $199,720,577.92. The trade was a 1.25% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 830,516 shares of company stock valued at $217,286,457. Insiders own 2.00% of the company's stock.

Hedge Funds Weigh In On Broadcom

A number of hedge funds have recently made changes to their positions in the stock. Sawyer & Company Inc increased its position in shares of Broadcom by 62.1% in the 2nd quarter. Sawyer & Company Inc now owns 94 shares of the semiconductor manufacturer's stock worth $26,000 after purchasing an additional 36 shares during the last quarter. Longfellow Investment Management Co. LLC bought a new stake in shares of Broadcom during the 2nd quarter valued at about $27,000. Legend Financial Advisors Inc. bought a new stake in shares of Broadcom during the 2nd quarter valued at about $28,000. Teachers Insurance & Annuity Association of America bought a new stake in shares of Broadcom during the 2nd quarter valued at about $28,000. Finally, LGT Financial Advisors LLC bought a new stake in shares of Broadcom during the 2nd quarter valued at about $31,000. Institutional investors and hedge funds own 76.43% of the company's stock.

Broadcom Trading Up 1.3%

The company has a current ratio of 1.08, a quick ratio of 0.98 and a debt-to-equity ratio of 0.89. The business's 50-day moving average is $283.69 and its two-hundred day moving average is $232.83. The firm has a market cap of $1.40 trillion, a P/E ratio of 111.60, a P/E/G ratio of 2.09 and a beta of 1.15.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its quarterly earnings data on Thursday, June 5th. The semiconductor manufacturer reported $1.58 earnings per share for the quarter, beating analysts' consensus estimates 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 during the quarter, compared to the consensus estimate of $14.98 billion. During the same quarter in the prior year, the firm earned $10.96 EPS. The company's revenue for the quarter was up 20.2% compared to the same quarter last year. Broadcom has set its Q3 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 business also recently declared a quarterly dividend, which was paid on Monday, June 30th. Stockholders of record on Friday, June 20th were paid a $0.59 dividend. This represents a $2.36 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date of this dividend was Friday, June 20th. Broadcom's dividend payout ratio is currently 88.39%.

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.