Broadcom (NASDAQ:AVGO) Trading 3.2% Higher Following Analyst Upgrade

Key Points

• Broadcom's stock surged by 3.2% after Piper Sandler raised its price target from $300 to $315, maintaining an overweight rating on the stock.
• Several analysts have increased their price targets lately, with Oppenheimer setting a new target at $305 and JPMorgan Chase raising it to $325, indicating overall strong market confidence in Broadcom.
• Insider trading reports reveal significant stock sales by CEO Hock E. Tan and Director Henry Samueli, together amounting to over $155 million in transactions within the last few months.

Broadcom Inc. (NASDAQ:AVGO - Get Free Report) shares traded up 3.2% during trading on Friday after Piper Sandler raised their price target on the stock from $300.00 to $315.00. Piper Sandler currently has an overweight rating on the stock. Broadcom traded as high as $299.80 and last traded at $299.00. 5,443,625 shares changed hands during mid-day trading, a decline of 79% from the average session volume of 25,902,992 shares. The stock had previously closed at $289.60.

Other analysts also recently issued research reports about the company. Oppenheimer boosted their price objective on Broadcom from $265.00 to $305.00 and gave the stock an "outperform" rating in a research note on Tuesday, July 15th. JPMorgan Chase & Co. lifted their target price on Broadcom from $250.00 to $325.00 and gave the stock an "overweight" rating in a report on Friday, June 6th. Susquehanna lifted their target price on Broadcom from $280.00 to $300.00 and gave the stock a "positive" rating in a report on Friday, June 6th. Evercore ISI restated an "outperform" rating and issued a $304.00 target price (up from $267.00) on shares of Broadcom in a report on Friday, June 6th. Finally, Truist Financial set a $295.00 target price on Broadcom and gave the stock a "buy" rating in a report on Friday, June 6th. Three equities research 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 stock. Based on data from MarketBeat.com, the company has a consensus rating of "Buy" and a consensus price target of $298.67.

Insider Buying and Selling at Broadcom

In other news, CEO Hock E. Tan sold 117,758 shares of Broadcom stock in a transaction on Thursday, June 12th. The stock was sold at an average price of $252.91, for a total transaction of $29,782,175.78. Following the transaction, the chief executive officer owned 1,014,152 shares in the company, valued at approximately $256,489,182.32. The trade was a 10.40% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Henry Samueli sold 473,898 shares of Broadcom stock in a transaction 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 transaction, the director owned 38,188,575 shares in the company, valued at $10,132,574,604.75. This represents a 1.23% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 830,516 shares of company stock valued at $217,286,457 in the last ninety days. Company insiders own 2.00% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of AVGO. 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 stake in shares of Broadcom in the 1st quarter valued at $25,000. Inlight Wealth Management LLC bought a new stake in Broadcom in the first quarter worth $26,000. Sawyer & Company Inc increased its position in Broadcom by 62.1% during the second quarter. Sawyer & Company Inc now owns 94 shares of the semiconductor manufacturer's stock worth $26,000 after buying an additional 36 shares during the last quarter. Finally, Longfellow Investment Management Co. LLC bought a new position in Broadcom during the second quarter valued at about $27,000. Hedge funds and other institutional investors own 76.43% of the company's stock.

Broadcom Trading Up 3.0%

The company has a fifty day simple moving average of $281.94 and a two-hundred day simple moving average of $231.84. The company has a market capitalization of $1.40 trillion, a P/E ratio of 111.74, a price-to-earnings-growth ratio of 2.07 and a beta of 1.15. 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 (NASDAQ:AVGO - Get Free Report) last issued its quarterly earnings data on Thursday, June 5th. The semiconductor manufacturer reported $1.58 EPS for the quarter, beating analysts' consensus estimates of $1.57 by $0.01. Broadcom had a return on equity of 35.49% and a net margin of 22.64%.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 posted $10.96 EPS. The firm's revenue for the quarter was up 20.2% on a year-over-year basis. Broadcom has set its Q3 2025 guidance at EPS. On average, analysts forecast that Broadcom Inc. will post 5.38 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, June 30th. Investors of record on Friday, June 20th were paid a $0.59 dividend. The ex-dividend date was Friday, June 20th. This represents a $2.36 dividend on an annualized basis and a yield of 0.8%. Broadcom's dividend payout ratio (DPR) is presently 88.39%.

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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