Broadcom (NASDAQ:AVGO) Trading Up 4.7% – Should You Buy?

Broadcom Inc. (NASDAQ:AVGO)’s stock price was up 4.7% during mid-day trading on Thursday . The stock traded as high as $412.70 and last traded at $411.35. 44,876,038 shares changed hands during trading, an increase of 70% from the average session volume of 26,362,186 shares. The stock had previously closed at $392.90.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom expanded its cash tender offer to $3 billion from $2.5 billion after strong investor demand for its debt, a move that can signal confidence in the company’s balance sheet and helped lift the stock. Broadcom stock rises as debt buyback expands and AI outlook stays strong
• Positive Sentiment: Wall Street commentary remained upbeat, with JPMorgan reiterating that investors should be “aggressive buyers” of Broadcom and arguing the market still underestimates the company’s long-term AI opportunity. AVGO stock jumps — JPMorgan says investors should be ‘aggressive buyers’ of Broadcom at current levels
• Positive Sentiment: Analysts also highlighted Broadcom’s massive AI pipeline and multi-year growth potential, reinforcing investor confidence in demand for its custom AI chips and related infrastructure products. Broadcom’s Massive AI Pipeline Secures Multi-Year Growth, Analyst Says
• Neutral Sentiment: Several media and investor commentary pieces referenced Broadcom as a favored AI stock and noted recent buying interest from high-profile investors, but these items were more sentiment-driven than company-specific catalysts. Jim Cramer Shares Unmissable Insights About Broadcom (AVGO)
• Negative Sentiment: One note flagged contracting gross margins year over year, which could raise questions about profitability even as revenue growth remains strong. AVGO’s Gross Margin Contracts Y/Y: Is Growth Getting Harder?

Analyst Upgrades and Downgrades

Several analysts have weighed in on AVGO shares. KeyCorp reaffirmed an “overweight” rating and issued a $575.00 price target (up from $500.00) on shares of Broadcom in a report on Thursday, June 4th. Morgan Stanley set a $502.00 price objective on shares of Broadcom and gave the stock an “overweight” rating in a research report on Thursday, June 4th. Rosenblatt Securities reaffirmed a “buy” rating and issued a $500.00 target price on shares of Broadcom in a research note on Thursday, June 4th. Jefferies Financial Group set a $550.00 target price on shares of Broadcom and gave the company a “buy” rating in a research report on Thursday, June 4th. Finally, Truist Financial boosted their price target on shares of Broadcom from $545.00 to $550.00 and gave the stock a “buy” rating in a research note on Thursday, June 4th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $490.13.

Broadcom Stock Performance

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’s fifty day moving average is $408.66 and its 200 day moving average is $363.11. The company has a market cap of $1.96 trillion, a P/E ratio of 68.56, a price-to-earnings-growth ratio of 0.66 and a beta of 1.41.

Broadcom (NASDAQ:AVGO) last issued its earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, topping analysts’ consensus estimates of $2.40 by $0.04. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The company had revenue of $22.19 billion for the quarter, compared to analysts’ expectations of $22.13 billion. During the same quarter last year, the company earned $1.58 EPS. The firm’s revenue was up 47.9% compared to the same quarter last year. As a group, equities analysts predict that Broadcom Inc. will post 10.24 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 22nd will be issued a dividend of $0.65 per share. The ex-dividend date is Monday, June 22nd. This represents a $2.60 annualized dividend and a yield of 0.6%. Broadcom’s dividend payout ratio is currently 43.33%.

Insider Buying and Selling at Broadcom

In other Broadcom news, Director Justine Page sold 2,018 shares of Broadcom stock in a transaction that occurred on Wednesday, April 8th. The stock was sold at an average price of $353.00, for a total value of $712,354.00. Following the transaction, the director directly owned 18,164 shares of the company’s stock, valued at $6,411,892. The trade was a 10.00% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Gayla J. Delly sold 1,000 shares of the stock in a transaction that occurred on Thursday, April 9th. The shares were sold at an average price of $358.31, for a total value of $358,310.00. Following the sale, the director directly owned 32,352 shares of the company’s stock, valued at approximately $11,592,045.12. This trade represents a 3.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 51,233 shares of company stock worth $18,125,134 over the last quarter. Company insiders own 1.90% of the company’s stock.

Institutional Investors Weigh In On Broadcom

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Brown Brothers Harriman & Co. lifted its holdings in shares of Broadcom by 10.7% during the third quarter. Brown Brothers Harriman & Co. now owns 77,411 shares of the semiconductor manufacturer’s stock valued at $25,539,000 after purchasing an additional 7,499 shares during the last quarter. Dana Investment Advisors Inc. boosted its position in shares of Broadcom by 2.6% in the 3rd quarter. Dana Investment Advisors Inc. now owns 173,759 shares of the semiconductor manufacturer’s stock worth $57,325,000 after purchasing an additional 4,442 shares in the last quarter. Sovran Advisors LLC grew its stake in shares of Broadcom by 121.3% in the 4th quarter. Sovran Advisors LLC now owns 30,631 shares of the semiconductor manufacturer’s stock worth $10,507,000 after buying an additional 16,789 shares during the last quarter. Thurston Springer Miller Herd & Titak Inc. grew its stake in shares of Broadcom by 406.1% in the 4th quarter. Thurston Springer Miller Herd & Titak Inc. now owns 11,994 shares of the semiconductor manufacturer’s stock worth $4,151,000 after buying an additional 9,624 shares during the last quarter. Finally, Siligmueller & Norvid Wealth Advisors LLC bought a new position in Broadcom during the 3rd quarter valued at approximately $762,000. 76.43% of the stock is currently owned by institutional investors.

Broadcom Company Profile

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.