Broadcom (NASDAQ:AVGO) Trading 3.7% Higher – Time to Buy?

Broadcom Inc. (NASDAQ:AVGO) traded up 3.7% on Monday . The company traded as high as $383.16 and last traded at $373.90. 24,023,065 shares were traded during mid-day trading, a decline of 9% from the average daily volume of 26,467,809 shares. The stock had previously closed at $360.45.

Broadcom News Roundup

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Apple’s more than $30 billion multiyear deal with Broadcom extends the partnership through 2031 and should provide a large, stable source of revenue. Reuters article
• Positive Sentiment: The agreement boosts Broadcom’s profile in AI-related custom silicon and U.S.-based manufacturing, which investors may see as a long-term strategic advantage. TechCrunch article
• Positive Sentiment: Several articles framed Broadcom as a beneficiary of renewed investor interest in AI semiconductors after recent sector weakness, implying the stock may have room to recover if chip demand stays strong. Benzinga article
• Neutral Sentiment: Broadcom saw unusually large call-option trading, which signals rising speculation but does not by itself confirm a fundamental change in the business.
• Neutral Sentiment: One analyst downgrade and mixed commentary about recent pullbacks could temper enthusiasm, but the Apple contract news appears to be the main driver today. Yahoo Finance article

Analysts Set New Price Targets

A number of research analysts recently commented on the company. UBS Group set a $485.00 price target on Broadcom and gave the stock a “buy” rating in a report on Thursday, June 4th. Evercore reissued an “outperform” rating and issued a $582.00 target price on shares of Broadcom in a report on Tuesday, May 19th. Cantor Fitzgerald restated an “overweight” rating and set a $525.00 target price on shares of Broadcom in a research report on Thursday, June 4th. JPMorgan Chase & Co. raised their target price on shares of Broadcom from $500.00 to $580.00 and gave the company an “overweight” rating in a research note on Thursday, June 4th. Finally, Rosenblatt Securities reiterated a “buy” rating and issued a $500.00 price target on shares of Broadcom in a research note on Thursday, June 4th. One investment analyst has rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat, Broadcom has a consensus rating of “Moderate Buy” and an average price target of $493.24.

Broadcom Stock Up 4.8%

The business’s 50 day simple moving average is $405.96 and its 200 day simple moving average is $363.03. 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 firm has a market capitalization of $1.85 trillion, a PE ratio of 64.78, a PEG ratio of 0.66 and a beta of 1.45.

Broadcom (NASDAQ:AVGO) last announced its quarterly earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, beating 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 firm had revenue of $22.19 billion during the quarter, compared to the consensus estimate of $22.13 billion. During the same quarter last year, the firm earned $1.58 EPS. The firm’s revenue for the quarter was up 47.9% compared to the same quarter last year. On average, equities research analysts forecast that Broadcom Inc. will post 10.24 earnings per share for the current year.

Broadcom Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 22nd were given a $0.65 dividend. The ex-dividend date was Monday, June 22nd. This represents a $2.60 dividend on an annualized basis and a yield of 0.7%. Broadcom’s dividend payout ratio (DPR) is currently 43.33%.

Insider Activity at Broadcom

In related news, insider Mark David Brazeal sold 4,825 shares of Broadcom stock in a transaction dated Wednesday, June 17th. The shares were sold at an average price of $394.91, for a total transaction of $1,905,440.75. Following the completion of the transaction, the insider directly owned 269,989 shares of the company’s stock, valued at approximately $106,621,355.99. The trade was a 1.76% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Harry L. You purchased 1,000 shares of the business’s stock in a transaction that occurred on Thursday, June 11th. The shares were purchased at an average price of $373.57 per share, for a total transaction of $373,570.00. Following the completion of the acquisition, the director directly owned 38,466 shares in the company, valued at $14,369,743.62. The trade was a 2.67% increase in their position. The SEC filing for this purchase provides additional information. Insiders sold 36,014 shares of company stock valued at $13,174,907 over the last three months. Corporate insiders own 1.90% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the business. ROSS JOHNSON & Associates LLC boosted its stake in shares of Broadcom by 1,320.0% during the fourth quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer’s stock valued at $25,000 after purchasing an additional 66 shares during the period. Networth Advisors LLC lifted its holdings in Broadcom by 546.2% during the 1st quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer’s stock valued at $26,000 after buying an additional 71 shares in the last quarter. SWAN Capital LLC boosted its position in Broadcom by 261.9% in the 4th quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer’s stock valued at $26,000 after buying an additional 55 shares during the period. Miller Global Investments LLC purchased a new stake in Broadcom in the 4th quarter valued at about $31,000. Finally, Nvest Wealth Strategies Inc. bought a new position in Broadcom in the 4th quarter worth about $33,000. Hedge funds and other institutional investors own 76.43% of the company’s stock.

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.