Broadcom (NASDAQ:AVGO) Hits New 52-Week High – Still a Buy?

Shares of Broadcom Inc. (NASDAQ:AVGO) hit a new 52-week high during mid-day trading on Tuesday . The company traded as high as $387.18 and last traded at $386.2850, with a volume of 26776607 shares. The stock had previously closed at $377.96.

Analyst Ratings Changes

AVGO has been the topic of several research analyst reports. Piper Sandler boosted their price objective on Broadcom from $315.00 to $375.00 and gave the company an “overweight” rating in a research report on Friday, September 5th. Raymond James Financial set a $420.00 price target on shares of Broadcom and gave the stock an “outperform” rating in a research note on Thursday. Oppenheimer restated an “outperform” rating and set a $360.00 price objective (up previously from $325.00) on shares of Broadcom in a research report on Friday, September 5th. Macquarie began coverage on Broadcom in a research report on Monday, September 15th. They issued an “outperform” rating and a $420.00 target price on the stock. Finally, The Goldman Sachs Group reaffirmed a “buy” rating and set a $340.00 price objective on shares of Broadcom in a report on Wednesday, August 13th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, Broadcom currently has an average rating of “Buy” and a consensus price target of $374.21.

Broadcom Price Performance

The company has a quick ratio of 1.37, a current ratio of 1.50 and a debt-to-equity ratio of 0.86. The company has a market capitalization of $1.82 trillion, a PE ratio of 98.22, a price-to-earnings-growth ratio of 1.16 and a beta of 1.19. The firm’s 50 day simple moving average is $348.43 and its 200 day simple moving average is $302.46.

Broadcom (NASDAQ:AVGO) last released its earnings results on Thursday, September 4th. The semiconductor manufacturer reported $1.69 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.66 by $0.03. Broadcom had a net margin of 31.59% and a return on equity of 36.60%. The firm had revenue of $15.95 billion during the quarter, compared to analyst estimates of $15.82 billion. During the same quarter last year, the business earned $1.24 EPS. The business’s revenue was up 22.0% on a year-over-year basis. Broadcom has set its Q4 2025 guidance at EPS. As a group, research analysts anticipate that Broadcom Inc. will post 5.38 EPS for the current fiscal year.

Broadcom Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 30th. Stockholders of record on Monday, September 22nd were paid a dividend of $0.59 per share. The ex-dividend date of this dividend was Monday, September 22nd. This represents a $2.36 dividend on an annualized basis and a dividend yield of 0.6%. Broadcom’s dividend payout ratio is currently 60.20%.

Insider Transactions at Broadcom

In related news, Director Henry Samueli sold 368,797 shares of the firm’s stock in a transaction that occurred on Wednesday, September 24th. The stock was sold at an average price of $337.91, for a total transaction of $124,620,194.27. Following the completion of the sale, the director directly owned 37,722,534 shares of the company’s stock, valued at approximately $12,746,821,463.94. This trade represents a 0.97% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Hock E. Tan sold 100,000 shares of the business’s stock in a transaction on Tuesday, September 23rd. The shares were sold at an average price of $339.58, for a total value of $33,958,000.00. Following the transaction, the chief executive officer owned 725,638 shares of the company’s stock, valued at approximately $246,412,152.04. The trade was a 12.11% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders bought 3,550 shares of company stock valued at $1,227,869 and sold 665,271 shares valued at $225,483,192. Corporate insiders own 2.00% of the company’s stock.

Institutional Investors Weigh In On Broadcom

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Chelsea Counsel Co. purchased a new position in shares of Broadcom during the third quarter worth approximately $46,000. CIBC Private Wealth Group LLC boosted its holdings in shares of Broadcom by 42.1% in the third quarter. CIBC Private Wealth Group LLC now owns 2,521,836 shares of the semiconductor manufacturer’s stock valued at $831,979,000 after purchasing an additional 747,273 shares during the period. CIBC Bancorp USA Inc. bought a new position in Broadcom in the third quarter worth approximately $399,602,000. Bell Investment Advisors Inc increased its holdings in Broadcom by 1.9% during the 3rd quarter. Bell Investment Advisors Inc now owns 1,638 shares of the semiconductor manufacturer’s stock worth $540,000 after purchasing an additional 30 shares during the period. Finally, Tcfg Wealth Management LLC raised its position in Broadcom by 9.0% during the 3rd quarter. Tcfg Wealth Management LLC now owns 6,315 shares of the semiconductor manufacturer’s stock valued at $2,083,000 after purchasing an additional 521 shares in the last quarter. Institutional investors own 76.43% of the company’s stock.

About Broadcom

Broadcom Inc designs, develops, and supplies various semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. The company operates in two segments, Semiconductor Solutions and Infrastructure Software.