Broadcom (NASDAQ:AVGO) Trading 3.9% Higher on Analyst Upgrade

Key Points

• Broadcom's shares rose by 3.9% after Argus raised its price target from $285.00 to $375.00 and maintained a buy rating on the stock.
• Analysts show strong confidence in Broadcom, with multiple upgrades and a consensus price target of $351.92, including a buy rating from 28 analysts.
• The company declared a quarterly dividend of $0.59, with an annualized dividend yield of 0.7%, set to be paid on September 30th.

Broadcom Inc. (NASDAQ:AVGO - Get Free Report) shares shot up 3.9% on Monday after Argus raised their price target on the stock from $285.00 to $375.00. Argus currently has a buy rating on the stock. Broadcom traded as high as $354.17 and last traded at $347.83. 17,742,642 shares changed hands during mid-day trading, a decline of 32% from the average session volume of 25,961,609 shares. The stock had previously closed at $334.89.

AVGO has been the subject of several other research reports. Benchmark lifted their price target on shares of Broadcom from $315.00 to $385.00 and gave the stock a "buy" rating in a research report on Friday. The Goldman Sachs Group reiterated a "buy" rating and set a $340.00 price target on shares of Broadcom in a research report on Wednesday, August 13th. Cantor Fitzgerald restated an "overweight" rating and set a $300.00 price objective on shares of Broadcom in a report on Friday, June 6th. Redburn Atlantic began coverage on shares of Broadcom in a report on Wednesday, May 28th. They set a "buy" rating and a $301.00 price objective for the company. Finally, HSBC upgraded shares of Broadcom from a "hold" rating to a "buy" rating and set a $400.00 price objective for the company in a report on Tuesday, June 24th. Three investment analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Buy" and a consensus price target of $351.92.

Insider Transactions at Broadcom

In other Broadcom news, Director Gayla J. Delly sold 3,000 shares of the company's stock in a transaction that occurred on Thursday, June 26th. The stock was sold at an average price of $265.13, for a total value of $795,390.00. Following the sale, the director owned 33,352 shares in the company, valued at $8,842,615.76. This represents a 8.25% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Hock E. Tan sold 40,000 shares of the company's stock in a transaction that occurred on Thursday, June 26th. The shares were sold at an average price of $268.29, for a total value 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 position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 830,516 shares of company stock valued at $217,286,457. Company insiders own 2.00% of the company's stock.

Hedge Funds Weigh In On Broadcom

Several large investors have recently modified their holdings of the stock. Sawyer & Company Inc grew its stake 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 in the last quarter. Longfellow Investment Management Co. LLC acquired a new stake in Broadcom during the second quarter worth about $27,000. Legend Financial Advisors Inc. acquired a new stake in Broadcom during the second quarter worth about $28,000. Teachers Insurance & Annuity Association of America acquired a new stake in Broadcom during the second quarter worth about $28,000. Finally, LGT Financial Advisors LLC acquired a new stake in Broadcom during the second quarter worth about $31,000. 76.43% of the stock is owned by institutional investors.

Broadcom Price Performance

The stock has a market capitalization of $1.63 trillion, a price-to-earnings ratio of 88.73, a P/E/G ratio of 2.38 and a beta of 1.16. 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 business's 50 day simple moving average is $292.09 and its 200-day simple moving average is $237.38.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its quarterly earnings data on Thursday, September 4th. The semiconductor manufacturer reported $1.69 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.66 by $0.03. The firm had revenue of $15.95 billion for 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%. The business's revenue for the quarter was up 22.0% on a year-over-year basis. During the same period in the prior year, the company posted $1.24 earnings per share. Broadcom has set its Q4 2025 guidance at EPS. On average, research analysts forecast that Broadcom Inc. will post 5.38 earnings per share for the current year.

Broadcom Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 30th. Stockholders of record on Monday, September 22nd will be paid a $0.59 dividend. This represents a $2.36 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date is Monday, September 22nd. Broadcom's dividend payout ratio (DPR) is presently 60.20%.

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.

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