Broadcom (NASDAQ:AVGO) Shares Up 2% – Still a Buy?

Shares of Broadcom Inc. (NASDAQ:AVGO) rose 2% on Monday . The company traded as high as $383.59 and last traded at $378.16. Approximately 14,191,876 shares were traded during trading, a decline of 46% from the average session volume of 26,123,867 shares. The stock had previously closed at $370.83.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Morgan Stanley reiterated an overweight view on Broadcom, saying AVGO remains one of the most attractive risk-reward names in semiconductors for AI infrastructure exposure. Broadcom stock gains 2% today: here’s why
• Positive Sentiment: Analysts continue to view the recent chip selloff as a buying opportunity, with Broadcom cited alongside Nvidia as a top value pick in AI-related semiconductors. Memory Stock Sell-Off Created a ‘Strong Entry Point,’ Says Morgan Stanley. Investors Are Buying In.
• Positive Sentiment: Broadcom’s AI business remains a key growth driver, with recent commentary emphasizing a strong revenue mix shift toward AI chips and improving long-term investment fundamentals. Broadcom’s AI Mix Shift: How AVGO’s Booming AI Chip Business Changes the Investment Thesis
• Positive Sentiment: Broadcom also gained attention after landing a major Standard Chartered deal to support cloud modernization across 54 markets, underscoring the strength of its infrastructure software business. Broadcom (AVGO) Lands Standard Chartered Deal To Power Banking Cloud In 54 Markets
• Neutral Sentiment: Broader semiconductor sentiment remains shaky after the SOX index entered a bear market, which could keep pressure on chip stocks even as investors selectively buy leaders like Broadcom. Semiconductor stocks enter bear market: Is bubble burst next?

Analysts Set New Price Targets

Several research firms have commented on AVGO. DA Davidson upped their price target on Broadcom from $375.00 to $400.00 and gave the company a “neutral” rating in a report on Thursday, June 4th. Benchmark boosted their price objective on Broadcom from $485.00 to $545.00 and gave the company a “buy” rating in a research report on Thursday, June 4th. The Goldman Sachs Group restated a “buy” rating and issued a $525.00 target price on shares of Broadcom in a research note on Thursday, June 4th. Zacks Research cut Broadcom from a “strong-buy” rating to a “hold” rating in a research report on Thursday, May 21st. Finally, Seaport Research Partners reiterated 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 issued a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $493.24.

Broadcom Stock Performance

The company has a market capitalization of $1.80 trillion, a P/E ratio of 63.03, a price-to-earnings-growth ratio of 0.65 and a beta of 1.45. The firm has a 50 day moving average price of $401.29 and a two-hundred day moving average price of $365.42. The company has a debt-to-equity ratio of 0.71, a quick ratio of 2.01 and a current ratio of 2.24.

Broadcom (NASDAQ:AVGO) last posted its earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, topping the consensus estimate of $2.40 by $0.04. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.The business 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 company earned $1.58 EPS. Broadcom’s revenue was up 47.9% on a year-over-year basis. On average, research analysts expect that Broadcom Inc. will post 10.24 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Monday, June 22nd were paid 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 payout ratio is currently 43.33%.

Insider Activity

In other news, Director Harry L. You acquired 1,000 shares of the firm’s stock in a transaction on Thursday, June 11th. The shares were purchased at an average cost of $373.57 per share, with a total value of $373,570.00. Following the completion of the purchase, the director owned 38,466 shares of the company’s stock, valued at $14,369,743.62. This represents a 2.67% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Gayla J. Delly sold 1,890 shares of the business’s stock in a transaction that occurred on Wednesday, July 8th. The stock was sold at an average price of $385.38, for a total value of $728,368.20. Following the completion of the transaction, the director directly owned 31,326 shares in the company, valued at $12,072,413.88. The trade was a 5.69% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 61,644 shares of company stock worth $24,016,214. 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 bought and sold shares of AVGO. Sovran Advisors LLC boosted its stake in Broadcom by 121.3% during the 4th quarter. Sovran Advisors LLC now owns 30,631 shares of the semiconductor manufacturer’s stock valued at $10,507,000 after purchasing an additional 16,789 shares during the last quarter. Thurston Springer Miller Herd & Titak Inc. increased its holdings 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 purchasing an additional 9,624 shares in the last quarter. Aspiriant LLC raised its stake in shares of Broadcom by 18.5% in the fourth quarter. Aspiriant LLC now owns 12,016 shares of the semiconductor manufacturer’s stock worth $4,158,000 after purchasing an additional 1,872 shares during the last quarter. World Investment Advisors lifted its holdings in shares of Broadcom by 16.1% during the fourth quarter. World Investment Advisors now owns 177,710 shares of the semiconductor manufacturer’s stock valued at $61,505,000 after purchasing an additional 24,703 shares in the last quarter. Finally, Western Financial Corp CA lifted its holdings in shares of Broadcom by 90.5% during the fourth quarter. Western Financial Corp CA now owns 6,481 shares of the semiconductor manufacturer’s stock valued at $2,243,000 after purchasing an additional 3,079 shares in the last quarter. 76.43% of the stock is owned by institutional investors and hedge funds.

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.