Broadcom (NASDAQ:AVGO) Shares Up 3.1% After Analyst Upgrade

Broadcom Inc. (NASDAQ:AVGO)’s stock price was up 3.1% during mid-day trading on Monday after Wall Street Zen upgraded the stock from a buy rating to a strong-buy rating. The stock traded as high as $396.20 and last traded at $393.94. Approximately 30,231,197 shares traded hands during mid-day trading, an increase of 16% from the average daily volume of 26,030,656 shares. The stock had previously closed at $382.07.

Several other analysts also recently issued reports on AVGO. Jefferies Financial Group set a $550.00 price objective on shares of Broadcom and gave the company a “buy” rating in a research report on Thursday, June 4th. DA Davidson increased their price objective on shares of Broadcom from $375.00 to $400.00 and gave the company a “neutral” rating in a research report on Thursday, June 4th. UBS Group set a $485.00 price objective on shares of Broadcom and gave the company a “buy” rating in a research report on Thursday, June 4th. Evercore reaffirmed an “outperform” rating and issued a $582.00 price objective on shares of Broadcom in a research report on Tuesday, May 19th. Finally, Royal Bank Of Canada increased their price objective on shares of Broadcom from $360.00 to $400.00 and gave the company a “sector perform” rating in a research report on Thursday, June 4th. One research analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $490.13.

Insider Activity

In related news, Director Justine Page sold 2,018 shares of the firm’s stock in a transaction on Wednesday, April 8th. The stock was sold at an average price of $353.00, for a total transaction of $712,354.00. Following the transaction, the director directly owned 18,164 shares in the company, valued at $6,411,892. This trade represents a 10.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider S. Ram Velaga sold 38,841 shares of the firm’s stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $321.60, for a total value of $12,491,265.60. Following the transaction, the insider owned 96,147 shares in the company, valued at $30,920,875.20. This trade represents a 28.77% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 215,970 shares of company stock valued at $71,104,945 over the last three months. 1.90% of the stock is currently owned by company insiders.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: The semiconductor and AI trade is off to a strong start, with chip and memory stocks surging and semiconductor ETFs drawing heavy trading, signaling renewed investor appetite for Broadcom and other AI infrastructure names. The AI Trade Starts Holiday-Shortened Week Strong as Chip and Memory Stocks Surge
• Positive Sentiment: Wall Street Zen upgraded Broadcom to Strong-Buy, adding a fresh bullish catalyst for the stock. Wall Street Zen Upgrades Broadcom (NASDAQ:AVGO) to Strong-Buy
• Positive Sentiment: Broadcom continues to benefit from AI infrastructure optimism, including coverage highlighting its AI XPV Platform and its role in custom compute and networking, which reinforces the company’s growth narrative. Broadcom (AVGO): AI XPV Platform Sharpens Its Role in Custom Compute and Networking Infrastructure
• Neutral Sentiment: Several new articles argue Broadcom could still have substantial upside, including a prediction that shares could reach $550 by 2027, but these are opinion pieces rather than direct company developments. Prediction: Can Broadcom Shares Hit $550 in 2027?
• Neutral Sentiment: Recent commentary also notes Broadcom’s strong Q2 results and AI growth, but says the stock sold off after cautious guidance, leaving investors focused on whether the valuation gap is narrowing or widening. Broadcom (AVGO) Stock After Record Q2 And Cautious AI Guidance Is The Valuation Gap Widening Or Closing
• Negative Sentiment: One analyst-style comparison piece said Lumentum looks better positioned than Broadcom in the near term, which may add some relative-performance pressure to AVGO. LITE vs. AVGO: Which AI Infrastructure Stock Is the Better Pick Now?

Hedge Funds Weigh In On Broadcom

Several large investors have recently added to or reduced their stakes in AVGO. Brighton Jones LLC lifted its stake in Broadcom by 21.8% in the fourth quarter. Brighton Jones LLC now owns 29,683 shares of the semiconductor manufacturer’s stock valued at $6,882,000 after buying an additional 5,322 shares during the last quarter. Revolve Wealth Partners LLC lifted its stake in Broadcom by 10.4% in the fourth quarter. Revolve Wealth Partners LLC now owns 7,997 shares of the semiconductor manufacturer’s stock valued at $1,854,000 after buying an additional 756 shares during the last quarter. United Bank lifted its stake in Broadcom by 76.5% in the first quarter. United Bank now owns 2,339 shares of the semiconductor manufacturer’s stock valued at $392,000 after buying an additional 1,014 shares during the last quarter. Sivia Capital Partners LLC lifted its stake in Broadcom by 10.1% in the second quarter. Sivia Capital Partners LLC now owns 12,693 shares of the semiconductor manufacturer’s stock valued at $3,499,000 after buying an additional 1,160 shares during the last quarter. Finally, Capital & Planning LLC lifted its stake in Broadcom by 10.5% in the second quarter. Capital & Planning LLC now owns 3,983 shares of the semiconductor manufacturer’s stock valued at $1,098,000 after buying an additional 378 shares during the last quarter. 76.43% of the stock is currently owned by institutional investors.

Broadcom Price Performance

The company has a quick ratio of 2.01, a current ratio of 2.24 and a debt-to-equity ratio of 0.71. The company has a market capitalization of $1.87 trillion, a P/E ratio of 65.66, a PEG ratio of 0.67 and a beta of 1.41. The business has a 50 day simple moving average of $404.26 and a 200-day simple moving average of $363.22.

Broadcom (NASDAQ:AVGO) last posted its earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates 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 return on equity of 41.61% and a net margin of 38.85%.The firm’s quarterly revenue was up 47.9% compared to the same quarter last year. During the same period last year, the business posted $1.58 earnings per share. Analysts predict that Broadcom Inc. will post 10.24 EPS for the current fiscal year.

Broadcom Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Monday, June 22nd will be paid a $0.65 dividend. This represents a $2.60 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date is Monday, June 22nd. Broadcom’s dividend payout ratio (DPR) is presently 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.