Broadcom (NASDAQ:AVGO) Shares Up 3.7% – Time to Buy?

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

Key Stories Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom announced an expanded partnership with Apple to develop and supply custom chips through 2031, reinforcing a key long-term revenue relationship and improving confidence in its AI and custom silicon growth. Reuters article
• Positive Sentiment: Market commentary says the Apple deal is lifting Broadcom and the broader chip sector, as traders rotate into AI and semiconductor names. FXEmpire article
• Positive Sentiment: Analysts and industry coverage continue to highlight Broadcom’s AI position, including its custom AI silicon business and Edge AI portfolio, which supports the stock’s long-term growth story. Yahoo Finance article
• Neutral Sentiment: Broadcom remains a widely watched AI beneficiary, with recent coverage noting it is among BlackRock’s important AI stocks, adding to sentiment but not changing the core business outlook. Yahoo Finance article
• Negative Sentiment: Some recent analysis noted AVGO had fallen over the prior month due to softer near-term guidance and no major lift to the longer-term AI outlook, which may temper enthusiasm if execution slows. Zacks article

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on AVGO shares. TD Cowen reissued a “buy” rating and set a $500.00 price target on shares of Broadcom in a report on Thursday, June 4th. UBS Group set a $485.00 price target on shares of Broadcom and gave the stock a “buy” rating in a research report on Thursday, June 4th. Bank of America boosted their target price on shares of Broadcom from $450.00 to $530.00 and gave the stock a “buy” rating in a research note on Thursday, June 4th. Wells Fargo & Company reiterated an “overweight” rating and set a $545.00 target price (up from $430.00) on shares of Broadcom in a research report on Thursday, May 14th. Finally, Evercore reissued an “outperform” rating and issued a $582.00 price target on shares of Broadcom in a report on Tuesday, May 19th. One analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $493.24.

Broadcom Stock Performance

The stock has a market cap of $1.78 trillion, a P/E ratio of 62.32, a PEG ratio of 0.63 and a beta of 1.45. The stock has a fifty day simple moving average of $407.92 and a 200-day simple moving average of $362.49. 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 quarterly earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share for the quarter, beating analysts’ consensus estimates of $2.40 by $0.04. The firm had revenue of $22.19 billion during the quarter, compared to the consensus estimate of $22.13 billion. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.The business’s revenue was up 47.9% compared to the same quarter last year. During the same period last year, the company earned $1.58 earnings per share. On average, equities analysts expect that Broadcom Inc. will post 10.24 earnings per share for the current year.

Broadcom Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Monday, June 22nd were paid a dividend of $0.65 per share. This represents a $2.60 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date was Monday, June 22nd. Broadcom’s dividend payout ratio is presently 43.33%.

Insider Activity

In other news, insider Mark David Brazeal sold 4,825 shares of the stock in a transaction on Wednesday, June 17th. The stock was sold at an average price of $394.91, for a total value of $1,905,440.75. Following the completion of the transaction, the insider directly owned 269,989 shares in the company, valued at approximately $106,621,355.99. This represents a 1.76% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Harry L. You purchased 1,000 shares of Broadcom stock in a transaction dated 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 owned 38,466 shares of the company’s stock, valued at approximately $14,369,743.62. The trade was a 2.67% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last ninety days, insiders sold 60,987 shares of company stock valued at $21,899,980. Corporate insiders own 1.90% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the company. ROSS JOHNSON & Associates LLC grew its position in shares of Broadcom by 1,320.0% in 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 in the last quarter. SWAN Capital LLC boosted its position in shares of Broadcom by 261.9% in the fourth quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer’s stock valued at $26,000 after acquiring an additional 55 shares during the period. Networth Advisors LLC grew its stake in Broadcom by 546.2% during the first quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer’s stock valued at $26,000 after acquiring an additional 71 shares in the last quarter. Miller Global Investments LLC purchased a new stake in Broadcom in the 4th quarter worth approximately $31,000. Finally, Nvest Wealth Strategies Inc. bought a new position 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.