Broadcom (NASDAQ:AVGO) Trading Up 2.7% - Should You Buy?

Key Points

• Broadcom shares rose by 2.7% on Thursday, trading at $308.30 with a total of 6 million shares traded, significantly below the average daily volume.
• Analysts have a consensus rating of Buy for Broadcom, with three ratings of Strong Buy and a consensus price target of $301.79.
• Broadcom recently declared a quarterly dividend of $0.59, with an annualized yield of 0.8%, while insiders sold over $217 million worth of shares in the last quarter.

Broadcom Inc. (NASDAQ:AVGO - Get Free Report) shares were up 2.7% on Thursday . The stock traded as high as $309.88 and last traded at $308.30. Approximately 6,037,219 shares were traded during mid-day trading, a decline of 77% from the average daily volume of 25,705,535 shares. The stock had previously closed at $300.25.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on AVGO shares. Arete Research raised shares of Broadcom to a "strong-buy" rating in a research report on Monday, July 28th. Redburn Atlantic began coverage on shares of Broadcom in a research report on Wednesday, May 28th. They issued a "buy" rating and a $301.00 target price for the company. Susquehanna boosted their price objective on shares of Broadcom from $280.00 to $300.00 and gave the company a "positive" rating in a research report on Friday, June 6th. Citigroup boosted their price objective on shares of Broadcom from $285.00 to $315.00 and gave the company a "buy" rating in a research report on Monday, July 7th. Finally, Piper Sandler boosted their price objective on shares of Broadcom from $300.00 to $315.00 and gave the company an "overweight" rating in a research report on Friday, August 22nd. Three investment analysts have rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, Broadcom presently has an average rating of "Buy" and a consensus price target of $301.79.

Broadcom Trading Up 2.9%

The business's 50 day moving average price is $285.64 and its two-hundred day moving average price is $233.74. The company has a market capitalization of $1.45 trillion, a price-to-earnings ratio of 115.66, a price-to-earnings-growth ratio of 2.12 and a beta of 1.15. The company has a debt-to-equity ratio of 0.89, a quick ratio of 0.98 and a current ratio of 1.08.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its quarterly earnings results on Thursday, June 5th. The semiconductor manufacturer reported $1.58 earnings per share for the quarter, topping analysts' consensus estimates of $1.57 by $0.01. The company had revenue of $15 billion during the quarter, compared to analyst estimates of $14.98 billion. Broadcom had a net margin of 22.64% and a return on equity of 35.49%. The business's revenue for the quarter was up 20.2% compared to the same quarter last year. During the same period in the prior year, the business posted $10.96 EPS. Broadcom has set its Q3 2025 guidance at EPS. Equities analysts forecast 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%.

Insider Buying and Selling

In related news, CEO Hock E. Tan sold 40,000 shares of the stock in a transaction that occurred on Thursday, June 26th. The shares were sold at an average price of $268.29, for a total transaction of $10,731,600.00. Following the completion of the sale, the chief executive officer directly owned 482,836 shares of the company's stock, valued at $129,540,070.44. This represents a 7.65% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Henry Samueli sold 473,898 shares of the stock in a transaction that occurred on Wednesday, June 25th. The shares were sold at an average price of $265.33, for a total transaction of $125,739,356.34. Following the sale, the director directly owned 38,188,575 shares of the company's stock, valued at approximately $10,132,574,604.75. This represents a 1.23% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 830,516 shares of company stock worth $217,286,457. Company insiders own 2.00% of the company's stock.

Institutional Investors Weigh In On Broadcom

A number of large investors have recently made changes to their positions in AVGO. Barnes Dennig Private Wealth Management LLC acquired a new position in Broadcom in the 1st quarter valued at approximately $25,000. Cheviot Value Management LLC acquired a new position in Broadcom in the 1st quarter valued at approximately $25,000. Inlight Wealth Management LLC acquired a new position in Broadcom in the 1st quarter valued at approximately $26,000. Sawyer & Company Inc increased its stake in Broadcom by 62.1% in the 2nd quarter. Sawyer & Company Inc now owns 94 shares of the semiconductor manufacturer's stock valued at $26,000 after buying an additional 36 shares during the period. Finally, Longfellow Investment Management Co. LLC acquired a new position in Broadcom in the 2nd quarter valued at approximately $27,000. Institutional investors and hedge funds 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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