Broadcom (NASDAQ:AVGO) Trading 2.7% Higher - Here's Why

Key Points

• Broadcom's stock price rose by 2.7% to $345.50 on the trading day, with a total of 21.16 million shares traded, reflecting a decline in volume compared to its average.
• Several brokerages have upgraded their ratings and target prices for Broadcom, with Oppenheimer setting a new target at $360.00, contributing to an overall average target of $357.22 across analyst ratings.
• The company reported earnings of $1.69 per share and revenue of $15.95 billion for the last quarter, exceeding consensus estimates and showing a 22.0% increase in revenue year-over-year.

Broadcom Inc. (NASDAQ:AVGO - Get Free Report) traded up 2.7% on Wednesday . The company traded as high as $346.54 and last traded at $345.50. 21,164,499 shares were traded during mid-day trading, a decline of 19% from the average session volume of 26,003,438 shares. The stock had previously closed at $336.41.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on AVGO. Oppenheimer reiterated an "outperform" rating and set a $360.00 target price (up from $325.00) on shares of Broadcom in a research note on Friday, September 5th. Hsbc Global Res raised shares of Broadcom from a "hold" rating to a "strong-buy" rating in a report on Tuesday, June 24th. Wells Fargo & Company increased their price target on shares of Broadcom from $255.00 to $345.00 and gave the company an "equal weight" rating in a report on Friday, September 5th. TD Cowen increased their price objective 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. Finally, Deutsche Bank Aktiengesellschaft increased their price objective on shares of Broadcom from $300.00 to $350.00 and gave the stock a "buy" rating in a research report on Friday, September 5th. Three investment analysts have rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of "Buy" and a consensus target price of $357.22.

Broadcom Trading Up 2.7%

The company has a market capitalization of $1.63 trillion, a price-to-earnings ratio of 88.14, a P/E/G ratio of 1.86 and a beta of 1.20. The company has a quick ratio of 1.37, a current ratio of 1.50 and a debt-to-equity ratio of 0.86. The company's 50 day simple moving average is $320.03 and its two-hundred day simple moving average is $259.78.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its 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 company had revenue of $15.95 billion during the quarter, compared to the consensus estimate of $15.82 billion. Broadcom had a net margin of 31.59% and a return on equity of 36.60%. Broadcom's revenue was up 22.0% compared to the same quarter last year. During the same period last year, the firm earned $1.24 earnings per share. Broadcom has set its Q4 2025 guidance at EPS. As a group, research analysts anticipate that Broadcom Inc. will post 5.38 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

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

Insider Buying and Selling at Broadcom

In other news, Director Henry Samueli sold 368,797 shares of Broadcom stock in a transaction on Wednesday, September 24th. The shares were sold at an average price of $337.91, for a total transaction of $124,620,194.27. Following the completion of the sale, the director directly owned 37,722,534 shares in the company, valued at approximately $12,746,821,463.94. The trade was a 0.97% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CFO Kirsten M. Spears sold 7,498 shares of Broadcom stock in a transaction on Wednesday, September 17th. The stock was sold at an average price of $347.66, for a total transaction of $2,606,754.68. Following the sale, the chief financial officer owned 313,330 shares of the company's stock, valued at $108,932,307.80. The trade was a 2.34% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders acquired 3,550 shares of company stock valued at $1,227,869 and sold 666,071 shares valued at $225,623,008. 2.00% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Sawyer & Company Inc increased its holdings in Broadcom by 62.1% in the second quarter. Sawyer & Company Inc now owns 94 shares of the semiconductor manufacturer's stock valued at $26,000 after buying an additional 36 shares in the last quarter. Longfellow Investment Management Co. LLC purchased a new position in Broadcom in the second quarter valued at $27,000. Legend Financial Advisors Inc. purchased a new position in Broadcom in the second quarter valued at $28,000. Teachers Insurance & Annuity Association of America acquired a new stake in shares of Broadcom in the second quarter valued at about $28,000. Finally, LGT Financial Advisors LLC acquired a new stake in shares of Broadcom in the second quarter valued at about $31,000. Hedge funds and other institutional investors 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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