Broadcom (NASDAQ:AVGO) Stock Price Up 1.3% – Here’s Why

Broadcom Inc. (NASDAQ:AVGO)’s stock price shot up 1.3% on Wednesday . The stock traded as high as $399.00 and last traded at $394.28. Approximately 16,170,878 shares changed hands during mid-day trading, a decline of 38% from the average session volume of 26,254,063 shares. The stock had previously closed at $389.11.

Broadcom News Roundup

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s extended Apple chip agreement through 2031 is seen as strategically important and supportive of long-term growth. Why Broadcom (AVGO) Is Reinforcing Its Long-Term Growth With an Extended Apple Chip Partnership Through 2031
• Positive Sentiment: Analysts continue to frame Broadcom as a major AI infrastructure winner, which is helping keep investor enthusiasm elevated. Broadcom is a ‘core AI winner,’ even as MediaTek encroaches, Morgan Stanley says
• Positive Sentiment: Wall Street price targets imply further upside for AVGO, reinforcing the bullish view on earnings and valuation momentum. Wall Street Analysts See a 32.76% Upside in Broadcom Inc. (AVGO): Can the Stock Really Move This High?
• Neutral Sentiment: Broadcom remains a heavily discussed AI stock, but some commentary also warns that the trade is crowded, which could increase volatility. Bank of America Says Long Semiconductors is the “Most Crowded Trade Ever”
• Negative Sentiment: Insider selling has been a mild drag on sentiment, even though it does not necessarily signal a change in Broadcom’s fundamentals. Broadcom (NASDAQ:AVGO) Insider Mark David Brazeal Sells 25,000 Shares
• Negative Sentiment: Separately, Reuters reported that five cloud industry groups are urging EU regulators to suspend some Broadcom business practices, adding a regulatory overhang. Five cloud business groups urge EU interim measures against Broadcom

Analyst Ratings Changes

Several brokerages have commented on AVGO. Zacks Research downgraded Broadcom from a “strong-buy” rating to a “hold” rating in a research note on Thursday, May 21st. Oppenheimer restated an “outperform” rating and issued a $535.00 price target (up from $450.00) on shares of Broadcom in a research note on Thursday, June 4th. Evercore reiterated an “outperform” rating and set a $582.00 price objective on shares of Broadcom in a research report on Tuesday, May 19th. KeyCorp restated an “overweight” rating and issued a $575.00 target price (up from $500.00) on shares of Broadcom in a research report on Thursday, June 4th. Finally, Seaport Research Partners reaffirmed a “neutral” rating on shares of Broadcom in a research note on Wednesday, April 8th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $493.24.

Broadcom Stock Performance

The company has a fifty day moving average price of $403.86 and a two-hundred day moving average price of $364.80. 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 capitalization of $1.88 trillion, a P/E ratio of 65.71, a PEG ratio of 0.67 and a beta of 1.45.

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 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 business had revenue of $22.19 billion during the quarter, compared to analyst estimates of $22.13 billion. During the same quarter last year, the business earned $1.58 EPS. The firm’s quarterly revenue was up 47.9% on a year-over-year basis. Equities analysts forecast that Broadcom Inc. will post 10.24 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

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

Insider Buying and Selling at Broadcom

In related news, Director Gayla J. Delly sold 1,890 shares of the firm’s stock in a transaction on Wednesday, July 8th. The stock was sold at an average price of $385.38, for a total transaction of $728,368.20. Following the completion of the transaction, the director directly owned 31,326 shares of the company’s stock, valued at $12,072,413.88. This trade represents a 5.69% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Justine Page sold 1,602 shares of the firm’s stock in a transaction on Monday, June 29th. The stock was sold at an average price of $373.86, for a total value of $598,923.72. Following the transaction, the director directly owned 17,426 shares of the company’s stock, valued at approximately $6,514,884.36. This represents a 8.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 61,644 shares of company stock worth $24,016,214 in the last three months. 1.90% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Broadcom

A number of institutional investors have recently made changes to their positions in AVGO. Norges Bank acquired a new stake in shares of Broadcom during the fourth quarter worth $24,252,196,000. Cardano Risk Management B.V. boosted its position in Broadcom by 895.2% during the fourth quarter. Cardano Risk Management B.V. now owns 12,689,800 shares of the semiconductor manufacturer’s stock valued at $4,391,940,000 after acquiring an additional 11,414,701 shares during the last quarter. Arrowstreet Capital Limited Partnership boosted its position in Broadcom by 118.1% during the first quarter. Arrowstreet Capital Limited Partnership now owns 18,739,006 shares of the semiconductor manufacturer’s stock valued at $5,799,889,000 after acquiring an additional 10,145,377 shares during the last quarter. State Street Corp grew its holdings in Broadcom by 2.7% during the 4th quarter. State Street Corp now owns 190,084,351 shares of the semiconductor manufacturer’s stock worth $65,788,194,000 after acquiring an additional 5,040,801 shares during the period. Finally, Vanguard Group Inc. grew its holdings in Broadcom by 0.8% during the 4th quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer’s stock worth $167,064,997,000 after acquiring an additional 3,919,715 shares during the period. 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.