Broadcom (NASDAQ:AVGO) Trading Up 8.4% on Strong Earnings

Key Points

• Broadcom's stock price surged 8.4% after the company reported quarterly earnings of $1.69 EPS, exceeding analysts' expectations of $1.66 EPS.
• The company declared a quarterly dividend of $0.59, reflecting a yield of 0.7% and a payout ratio of 88.39%.
• Analyst ratings for Broadcom remain positive, with multiple firms raising price targets, indicating a consensus rating of "Buy" and a consensus target price of $344.58.

Broadcom Inc. (NASDAQ:AVGO - Get Free Report) shares shot up 8.4% on Friday after the company announced better than expected quarterly earnings. The stock traded as high as $356.34 and last traded at $331.94. 39,492,291 shares changed hands during trading, an increase of 53% from the average session volume of 25,751,033 shares. The stock had previously closed at $306.10.

The semiconductor manufacturer reported $1.69 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.66 by $0.03. The business had revenue of $15.95 billion for the quarter, compared to the consensus estimate of $15.82 billion. Broadcom had a return on equity of 35.49% and a net margin of 22.64%.The business's revenue was up 22.0% compared to the same quarter last year. During the same period last year, the business posted $1.24 EPS. Broadcom has set its Q4 2025 guidance at EPS.

Broadcom Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 30th. Investors of record on Monday, September 22nd will be issued a $0.59 dividend. This represents a $2.36 dividend on an annualized basis and a yield of 0.7%. Broadcom's payout ratio is 88.39%.

Wall Street Analysts Forecast Growth

AVGO has been the topic of a number of recent analyst reports. Wells Fargo & Company upped their price objective on Broadcom from $255.00 to $345.00 and gave the company an "equal weight" rating in a report on Friday. Deutsche Bank Aktiengesellschaft lifted their target price on Broadcom from $300.00 to $350.00 and gave the stock a "buy" rating in a research report on Friday. UBS Group boosted their price target on Broadcom from $290.00 to $345.00 and gave the company a "buy" rating in a research report on Monday, August 25th. Redburn Atlantic initiated coverage on Broadcom in a research note on Wednesday, May 28th. They set a "buy" rating and a $301.00 price target on the stock. Finally, Evercore ISI reaffirmed an "outperform" rating and issued a $342.00 target price (up previously from $304.00) on shares of Broadcom in a research note on Thursday. Three investment analysts have rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Buy" and a consensus target price of $344.58.

Insider Activity

In other Broadcom news, CFO Kirsten M. Spears sold 56,310 shares of the stock in a transaction on Wednesday, June 18th. The shares were sold at an average price of $251.75, for a total transaction of $14,176,042.50. Following the transaction, the chief financial officer directly owned 361,937 shares of the company's stock, valued at $91,117,639.75. This represents a 13.46% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Hock E. Tan sold 117,758 shares of the firm's stock in a transaction dated 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 of the company's stock, valued at approximately $256,489,182.32. This represents a 10.40% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 830,516 shares of company stock valued at $217,286,457. 2.00% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Broadcom

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. SevenBridge Financial Group LLC lifted its position in Broadcom by 21.8% during the second quarter. SevenBridge Financial Group LLC now owns 14,404 shares of the semiconductor manufacturer's stock worth $3,970,000 after acquiring an additional 2,577 shares during the last quarter. American Trust raised its position in shares of Broadcom by 72.1% during the second quarter. American Trust now owns 9,603 shares of the semiconductor manufacturer's stock worth $2,647,000 after acquiring an additional 4,023 shares during the last quarter. PVG Asset Management Corp boosted its position in Broadcom by 119.4% during the second quarter. PVG Asset Management Corp now owns 2,874 shares of the semiconductor manufacturer's stock valued at $792,000 after acquiring an additional 1,564 shares during the last quarter. FSC Wealth Advisors LLC bought a new position in shares of Broadcom during the 2nd quarter worth about $74,000. Finally, Evolution Wealth Management Inc. acquired a new stake in shares of Broadcom in the 2nd quarter worth about $36,000. Institutional investors own 76.43% of the company's stock.

Broadcom Stock Up 9.0%

The company has a debt-to-equity ratio of 0.89, a quick ratio of 0.98 and a current ratio of 1.08. The company has a market cap of $1.57 trillion, a price-to-earnings ratio of 125.04, a price-to-earnings-growth ratio of 2.15 and a beta of 1.16. The stock's fifty day moving average is $290.78 and its two-hundred day moving average is $236.51.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.