Broadcom (NASDAQ:AVGO) Trading Up 2.8% After Analyst Upgrade

Key Points

• Broadcom shares rose 2.8% after Wall Street Zen upgraded the stock from hold to buy, lifting the price as high as $402.84 in midday trading.
• Other analysts also turned more bullish, with firms like JPMorgan, Bank of America, and Deutsche Bank raising price targets; the stock now has a consensus rating of Moderate Buy with a target around $490.13.
• Broadcom’s latest earnings beat expectations, with EPS of $2.44 on $22.19 billion in revenue, and revenue jumped 47.9% year over year, driven by strong AI semiconductor growth.

Broadcom Inc. (NASDAQ:AVGO - Get Free Report)'s share price was up 2.8% during mid-day trading on Monday after Wall Street Zen upgraded the stock from a hold rating to a buy rating. The company traded as high as $402.84 and last traded at $396.60. Approximately 36,367,527 shares changed hands during mid-day trading, an increase of 42% from the average daily volume of 25,670,145 shares. The stock had previously closed at $385.73.

Other research analysts also recently issued research reports about the stock. JPMorgan Chase & Co. lifted their price target on shares of Broadcom from $500.00 to $580.00 and gave the stock an "overweight" rating in a research note on Thursday. Bank of America lifted their price target on shares of Broadcom from $450.00 to $530.00 and gave the stock a "buy" rating in a research note on Thursday. Rosenblatt Securities restated a "buy" rating and set a $500.00 price objective on shares of Broadcom in a research report on Thursday. Seaport Research Partners restated a "neutral" rating on shares of Broadcom in a research report on Wednesday, April 8th. Finally, Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a $515.00 price objective (up from $430.00) on shares of Broadcom in a research report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $490.13.

Insider Transactions at Broadcom

In related news, insider Charlie B. Kawwas sold 10,000 shares of the company's stock in a transaction on Wednesday, April 8th. The shares were sold at an average price of $345.23, for a total value of $3,452,300.00. Following the completion of the sale, the insider owned 787,184 shares in the company, valued at $271,759,532.32. This represents a 1.25% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Justine Page sold 2,018 shares of the company's stock in a transaction 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 owned 18,164 shares of the company's stock, valued at approximately $6,411,892. This trade represents a 10.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 324,282 shares of company stock worth $106,425,249 over the last 90 days. Company insiders own 1.90% of the company's stock.

Broadcom News Roundup

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s fiscal Q2 results were solid, with revenue and EPS both beating expectations, and AI semiconductor revenue jumped sharply year over year. Broadcom Shares Tumble Despite Surging AI Revenue. Should Investors Buy the Dip?
• Positive Sentiment: Bank of America raised its price target on Broadcom to $530 from $450 and kept a Buy rating, reinforcing bullish Street sentiment. Is Broadcom (AVGO) the Best Stock in Chase Coleman’s Tiger Global?
• Positive Sentiment: Several commentary pieces argue the selloff was overdone and that the market may be missing the bigger AI growth story at Broadcom. Broadcom's Selloff Misses The Bigger Story
• Neutral Sentiment: Broadcom also announced expanded security investments for its Spring and Java ecosystem to prepare customers for AI-enabled threats, a longer-term strategic move rather than an immediate revenue catalyst. Broadcom Expands Its Investment in Spring and Java Ecosystem Security to Prepare Customers for AI-Enabled Threats
• Negative Sentiment: The main drag on the stock is that investors wanted stronger forward sales guidance after the earnings beat, and the company did not deliver enough upside to satisfy high expectations. Why Is Broadcom Stock Crashing, and is it a Generational Buying Opportunity?

Institutional Trading of Broadcom

Several institutional investors and hedge funds have recently bought and sold shares of AVGO. Vanguard Group Inc. increased its stake in Broadcom by 0.8% in the 4th quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer's stock valued at $167,064,997,000 after buying an additional 3,919,715 shares during the period. State Street Corp increased its stake in Broadcom by 2.7% in the 4th quarter. State Street Corp now owns 190,084,351 shares of the semiconductor manufacturer's stock valued at $65,788,194,000 after buying an additional 5,040,801 shares during the period. Geode Capital Management LLC increased its stake in Broadcom by 1.4% in the 4th quarter. Geode Capital Management LLC now owns 111,277,280 shares of the semiconductor manufacturer's stock valued at $38,396,634,000 after buying an additional 1,548,699 shares during the period. Price T Rowe Associates Inc. MD increased its stake in Broadcom by 3.0% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 85,546,083 shares of the semiconductor manufacturer's stock valued at $29,607,500,000 after buying an additional 2,491,644 shares during the period. Finally, Norges Bank acquired a new position in Broadcom in the 4th quarter valued at $24,252,196,000. Hedge funds and other institutional investors own 76.43% of the company's stock.

Broadcom Stock Up 2.8%

The company has a current ratio of 2.24, a quick ratio of 2.01 and a debt-to-equity ratio of 0.71. The company has a market capitalization of $1.88 trillion, a price-to-earnings ratio of 66.10, a PEG ratio of 0.70 and a beta of 1.41. The firm's 50 day simple moving average is $396.22 and its 200-day simple moving average is $362.04.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its quarterly earnings data on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.40 by $0.04. The company had revenue of $22.19 billion for the quarter, compared to analysts' expectations of $22.13 billion. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. Broadcom's revenue was up 47.9% compared to the same quarter last year. During the same period in the previous year, the company posted $1.58 EPS. On average, sell-side analysts anticipate that Broadcom Inc. will post 9.97 EPS for the current fiscal year.

Broadcom Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Monday, June 22nd will be paid a dividend of $0.65 per share. The ex-dividend date of this dividend is Monday, June 22nd. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.7%. Broadcom's dividend payout ratio is 43.33%.

About Broadcom

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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