Broadcom (NASDAQ:AVGO) Trading 3% Higher Following Analyst Upgrade

Key Points

• Broadcom shares rose 3% after Morgan Stanley increased its price target to $485 from $470 and maintained an overweight rating. The stock traded as high as $466.05 on heavier-than-normal volume.
• Analyst sentiment remains broadly positive, with multiple firms recently reiterating or raising ratings and targets, though some mixed views and valuation concerns persist. MarketBeat’s data shows an average rating of Moderate Buy and an average target price of $455.07.
• Broadcom’s latest earnings topped expectations, with EPS of $2.05 versus $2.03 expected and revenue of $19.31 billion, up 29.5% year over year. The company also paid a quarterly dividend of $0.65 per share, yielding about 0.6% annualized.

Broadcom Inc. (NASDAQ:AVGO - Get Free Report) rose 3% during trading on Monday after Morgan Stanley raised their price target on the stock from $470.00 to $485.00. Morgan Stanley currently has an overweight rating on the stock. Broadcom traded as high as $466.05 and last traded at $459.97. Approximately 29,315,832 shares traded hands during trading, an increase of 20% from the average daily volume of 24,410,336 shares. The stock had previously closed at $446.77.

AVGO has been the topic of several other reports. Weiss Ratings upgraded shares of Broadcom from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Wednesday. Wall Street Zen lowered shares of Broadcom from a "buy" rating to a "hold" rating in a research note on Saturday. Seaport Research Partners reaffirmed a "neutral" rating on shares of Broadcom in a research note on Wednesday, April 8th. Truist Financial lifted their target price on shares of Broadcom from $510.00 to $545.00 and gave the stock a "buy" rating in a report on Thursday, March 5th. Finally, Susquehanna reiterated a "positive" rating and issued a $490.00 target price (up from $450.00) on shares of Broadcom in a report on Thursday. One analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $455.07.

Insider Buying and Selling at Broadcom

In related news, Director Gayla J. Delly sold 1,000 shares of the business's stock in a transaction that occurred on Thursday, April 9th. The shares were sold at an average price of $358.31, for a total transaction of $358,310.00. Following the completion of the sale, the director directly owned 32,352 shares of the company's stock, valued at $11,592,045.12. The trade was a 3.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, Director Justine Page sold 2,018 shares of the company's stock in a transaction that occurred on Wednesday, April 8th. The shares were sold at an average price of $353.00, for a total transaction of $712,354.00. Following the completion of the sale, the director directly owned 18,164 shares of the company's stock, valued at $6,411,892. The trade was a 10.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 324,282 shares of company stock valued at $106,425,249 over the last 90 days. Company insiders own 1.90% of the company's stock.

Trending Headlines about Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Morgan Stanley raised its price target on Broadcom to $485 from $470 and kept an overweight rating, reinforcing bullish sentiment ahead of earnings.
• Positive Sentiment: Several articles highlighted Broadcom as a top AI and long-term growth name, with investors viewing it as a major beneficiary of AI infrastructure spending and custom chip demand.
• Positive Sentiment: Broadcom is expected to report strong Q2 revenue growth driven by AI sales, with market chatter focused on whether results and guidance can justify the stock’s elevated valuation.
• Neutral Sentiment: Traders are expecting a potentially large post-earnings move, reflecting heightened volatility rather than a clear directional catalyst.
• Neutral Sentiment: Coverage also noted mixed views on the stock, including a bearish bet from one investor and concerns that margin trends and valuation could limit upside if earnings disappoint.
• Negative Sentiment: Some analysts and commentators flagged risk around Broadcom’s stretched valuation and flat gross margin, which could make the stock vulnerable if the company fails to exceed already high expectations.

Institutional Trading of Broadcom

A number of hedge funds have recently modified their holdings of the stock. Fullerton Advisors LLC boosted its position in Broadcom by 1.3% during the 1st quarter. Fullerton Advisors LLC now owns 1,989 shares of the semiconductor manufacturer's stock worth $616,000 after buying an additional 25 shares during the period. NORTHSTAR ASSET MANAGEMENT Co lifted its position in shares of Broadcom by 0.5% in the 1st quarter. NORTHSTAR ASSET MANAGEMENT Co now owns 5,350 shares of the semiconductor manufacturer's stock worth $1,656,000 after purchasing an additional 25 shares during the period. RFG Holdings Inc. lifted its position in shares of Broadcom by 0.3% in the 1st quarter. RFG Holdings Inc. now owns 8,499 shares of the semiconductor manufacturer's stock worth $2,631,000 after purchasing an additional 26 shares during the period. Yukon Wealth Management Inc. lifted its position in shares of Broadcom by 1.1% in the 1st quarter. Yukon Wealth Management Inc. now owns 2,501 shares of the semiconductor manufacturer's stock worth $774,000 after purchasing an additional 26 shares during the period. Finally, Capital Planning LLC lifted its position in shares of Broadcom by 0.7% in the 1st quarter. Capital Planning LLC now owns 4,044 shares of the semiconductor manufacturer's stock worth $1,252,000 after purchasing an additional 28 shares during the period. Institutional investors and hedge funds own 76.43% of the company's stock.

Broadcom Stock Up 3.0%

The firm's 50 day moving average price is $383.52 and its two-hundred day moving average price is $358.56. The company has a market cap of $2.18 trillion, a P/E ratio of 89.84, a price-to-earnings-growth ratio of 0.92 and a beta of 1.41. The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.73 and a current ratio of 1.90.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its quarterly earnings data on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share for the quarter, beating the consensus estimate of $2.03 by $0.02. The company had revenue of $19.31 billion during the quarter, compared to analyst estimates of $19.10 billion. Broadcom had a net margin of 36.57% and a return on equity of 38.61%. Broadcom's revenue for the quarter was up 29.5% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.60 EPS. Equities research analysts anticipate that Broadcom Inc. will post 9.91 EPS for the current fiscal year.

Broadcom Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Monday, March 23rd were paid a dividend of $0.65 per share. This represents a $2.60 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date was Monday, March 23rd. Broadcom's payout ratio is 50.78%.

Broadcom Company Profile

Broadcom Inc NASDAQ: AVGO is a global technology company that designs, develops and supplies semiconductor and infrastructure software solutions for a broad range of markets. The company's semiconductor business provides components and systems for wired and wireless communications, enterprise and cloud storage, networking and broadband access, serving original equipment manufacturers, cloud service providers, telecommunications carriers and industrial customers worldwide. Broadcom is headquartered in Irvine, California, and operates globally with research, development and sales organizations across North America, Europe and Asia.

On the semiconductor side, Broadcom's portfolio includes system-on-chip (SoC) and application-specific integrated circuit (ASIC) solutions, radio-frequency and connectivity components, Ethernet switching and PHY devices, storage adapters and controllers, optical transceivers and other networking silicon.

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