Mizuho Forecasts Strong Price Appreciation for Broadcom (NASDAQ:AVGO) Stock

Key Points

• Mizuho raised its target price for Broadcom (NASDAQ:AVGO) from $320 to $355, indicating a potential upside of 6.5% from the previous close.
• Broadcom's share price increased by 8.9%, reaching $333.34, with a significant trading volume of over 39 million shares.
• Several firms, including Deutsche Bank and Bank of America, have issued positive ratings and increased target prices for Broadcom, with the consensus rating currently at "Buy."

Broadcom (NASDAQ:AVGO - Free Report) had its price objective increased by Mizuho from $320.00 to $355.00 in a research report report published on Friday morning,Benzinga reports. The brokerage currently has an outperform rating on the semiconductor manufacturer's stock.

AVGO has been the subject of a number of other reports. Bank of America increased their target price on Broadcom from $300.00 to $400.00 and gave the stock a "buy" rating in a research note on Friday. Citigroup raised their price objective on Broadcom from $285.00 to $315.00 and gave the company a "buy" rating in a research note on Monday, July 7th. HSBC raised Broadcom from a "hold" rating to a "buy" rating and set a $400.00 price objective for the company in a research note on Tuesday, June 24th. UBS Group raised their price objective on Broadcom from $290.00 to $345.00 and gave the company a "buy" rating in a research note on Monday, August 25th. Finally, Rosenblatt Securities raised their price objective on Broadcom from $340.00 to $400.00 and gave the company a "buy" rating in a research note on Friday. Three equities research analysts have rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat, Broadcom presently has an average rating of "Buy" and a consensus price target of $351.00.

Broadcom Stock Performance

Shares of AVGO stock traded up $28.79 during trading hours on Friday, reaching $334.89. 78,318,626 shares of the company's stock were exchanged, compared to its average volume of 17,635,120. The company has a market cap of $1.58 trillion, a P/E ratio of 85.43, a price-to-earnings-growth ratio of 2.38 and a beta of 1.16. The company's 50 day moving average is $292.09 and its two-hundred day moving average is $237.31. Broadcom has a 1 year low of $134.90 and a 1 year high of $356.34. 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 earnings results 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 business had revenue of $15.95 billion during the quarter, compared to the consensus estimate of $15.82 billion. Broadcom had a return on equity of 37.17% and a net margin of 31.59%.The company's revenue for the quarter was up 22.0% on a year-over-year basis. During the same period in the prior year, the business posted $1.24 EPS. Broadcom has set its Q4 2025 guidance at EPS. Equities research analysts anticipate that Broadcom will post 5.38 EPS for the current fiscal year.

Broadcom Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 30th. Shareholders of record on Monday, September 22nd will be issued a dividend of $0.59 per share. This represents a $2.36 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date is Monday, September 22nd. Broadcom's dividend payout ratio is 88.39%.

Insider Activity

In other Broadcom news, CEO Hock E. Tan sold 40,000 shares of the stock in a transaction on Thursday, June 26th. The stock was sold at an average price of $268.29, for a total transaction of $10,731,600.00. Following the sale, the chief executive officer owned 482,836 shares in the company, valued at approximately $129,540,070.44. This represents a 7.65% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Henry Samueli sold 473,898 shares of the 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 sale, the director owned 38,188,575 shares in the company, valued at approximately $10,132,574,604.75. This trade represents a 1.23% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 830,516 shares of company stock worth $217,286,457 in the last quarter. 2.00% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Broadcom

Several hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. boosted its holdings in shares of Broadcom by 1.3% during the second quarter. Vanguard Group Inc. now owns 483,442,939 shares of the semiconductor manufacturer's stock worth $133,261,046,000 after purchasing an additional 6,222,802 shares during the last quarter. State Street Corp raised its position in shares of Broadcom by 0.5% in the 2nd quarter. State Street Corp now owns 185,276,987 shares of the semiconductor manufacturer's stock worth $51,071,601,000 after buying an additional 873,963 shares during the period. Geode Capital Management LLC raised its position in shares of Broadcom by 2.1% in the 2nd quarter. Geode Capital Management LLC now owns 108,610,718 shares of the semiconductor manufacturer's stock worth $29,827,649,000 after buying an additional 2,226,585 shares during the period. Norges Bank purchased a new position in shares of Broadcom in the 2nd quarter worth $18,579,549,000. Finally, Price T Rowe Associates Inc. MD raised its position in shares of Broadcom by 37.8% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 65,509,579 shares of the semiconductor manufacturer's stock worth $10,968,270,000 after buying an additional 17,985,046 shares during the period. 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.