Broadcom (NASDAQ:AVGO) Stock Price Up 4.8% – Should You Buy?

Broadcom Inc. (NASDAQ:AVGO) shot up 4.8% during trading on Wednesday . The company traded as high as $395.09 and last traded at $388.69. Approximately 30,720,337 shares changed hands during mid-day trading, an increase of 16% from the average session volume of 26,490,170 shares. The stock had previously closed at $370.78.

Broadcom News Summary

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Apple’s new $30 billion supply agreement with Broadcom extends through 2031 and adds confidence in long-term semiconductor demand, while also supporting Broadcom’s domestic chip manufacturing expansion. Broadcom’s $30 Billion Apple Deal: This Chip Giant Is About More than Just AI
• Positive Sentiment: Broadcom’s AI chip business remains a key growth driver, with analysts citing improving AI-chip outlooks and strong Wall Street support for the stock. Broadcom’s (AVGO) AI Chip Momentum Keeps Wall Street Bullish
• Positive Sentiment: Commentary continues to frame Broadcom as a long-term winner with significant upside, helped by its exposure to AI infrastructure and broad product mix. Why I Can’t Stop Buying This “Boring” Chipmaker With Game Changing Upside
• Neutral Sentiment: One analyst downgrade to Hold cited valuation concerns, adding a note of caution after the stock’s recent rally. Erste Group downgrades Broadcom to Hold citing valuation concerns

Analyst Upgrades and Downgrades

Several research firms have recently issued reports on AVGO. Mizuho boosted their target price on Broadcom from $480.00 to $530.00 and gave the stock an “outperform” rating in a research report on Thursday, June 4th. JPMorgan Chase & Co. boosted their price objective on shares of Broadcom from $500.00 to $580.00 and gave the company an “overweight” rating in a report on Thursday, June 4th. DA Davidson upped their target price on shares of Broadcom from $375.00 to $400.00 and gave the company a “neutral” rating in a research note on Thursday, June 4th. Oppenheimer reiterated an “outperform” rating and issued a $535.00 target price (up from $450.00) on shares of Broadcom in a report on Thursday, June 4th. Finally, Jefferies Financial Group set a $550.00 price target on shares of Broadcom and gave the stock a “buy” rating in a research report on Thursday, June 4th. One investment analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and four have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, Broadcom presently has a consensus rating of “Moderate Buy” and a consensus target price of $493.24.

Broadcom Stock Performance

The company has a debt-to-equity ratio of 0.71, a current ratio of 2.24 and a quick ratio of 2.01. The company has a market cap of $1.90 trillion, a price-to-earnings ratio of 66.64, a price-to-earnings-growth ratio of 0.68 and a beta of 1.45. The stock has a 50-day moving average price of $405.40 and a 200 day moving average price of $363.87.

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

Broadcom Announces Dividend

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

Insider Transactions at Broadcom

In related news, Director Harry L. You acquired 1,000 shares of the company’s stock in a transaction that occurred on Thursday, June 11th. The shares were acquired at an average cost 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 approximately $14,369,743.62. The trade was a 2.67% increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Mark David Brazeal sold 4,825 shares of the business’s stock in a transaction on 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 sale, the insider directly owned 269,989 shares in the company, valued at $106,621,355.99. This represents a 1.76% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 9,754 shares of company stock valued at $3,774,846 over the last quarter. Corporate insiders own 1.90% of the company’s stock.

Institutional Investors Weigh In On Broadcom

A number of institutional investors and hedge funds have recently made changes to their positions in AVGO. ROSS JOHNSON & Associates LLC boosted its holdings 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 worth $25,000 after acquiring an additional 66 shares during the period. SWAN Capital LLC lifted its holdings in Broadcom by 261.9% during the 4th quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer’s stock worth $26,000 after purchasing an additional 55 shares during the last quarter. 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 worth $26,000 after purchasing an additional 71 shares during the last quarter. Miller Global Investments LLC bought a new stake in Broadcom in the 4th quarter valued at $31,000. Finally, Nvest Wealth Strategies Inc. bought a new stake in Broadcom in the 4th quarter valued at $33,000. 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.