Broadcom (NASDAQ:AVGO) Trading Up 2.7% – Should You Buy?

Broadcom Inc. (NASDAQ:AVGO)’s stock price was up 2.7% on Wednesday . The company traded as high as $398.59 and last traded at $396.81. 16,421,825 shares were traded during trading, a decline of 37% from the average session volume of 25,991,195 shares. The stock had previously closed at $386.50.

Broadcom News Roundup

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: A new cloud deal could benefit Broadcom by expanding demand tied to enterprise and infrastructure software, adding to the company’s AI and networking growth story. Broadcom stands to gain from new cloud deal
• Positive Sentiment: Multiple recent articles highlighted Broadcom as a beneficiary of AI spending and dividend appeal, reinforcing its image as a quality large-cap semiconductor name with durable cash flow. These Stocks Offer AI Exposure and Dividend Payouts
• Positive Sentiment: Analyst commentary said Broadcom’s VCF software business is becoming a growth engine as companies modernize private clouds for AI and virtualized workloads, which could support future revenue growth. VCF is Becoming Broadcom’s Growth Engine: More Upside Ahead?
• Positive Sentiment: Several market notes pointed to a rebound in chip stocks and easing forced selling in the AI/semiconductor trade, which may be helping AVGO recover with the broader sector. UBS sees Broadcom, Sandisk, Oracle stocks rebounding: here’s why
• Positive Sentiment: Recent coverage from investors and commentators remained constructive, with some arguing Broadcom still looks attractive even near all-time highs because of its cash generation and long-term AI exposure. Broadcom: Why We Keep Loading Up At ATHs
• Neutral Sentiment: Insider-trading headlines showed mixed signals across tech, with Broadcom mentioned for insider selling, but the article did not indicate a clear business deterioration. Insider Moves Are Sending Mixed Signals Across the Tech Sector (AVGO)
• Negative Sentiment: Broadcom has also faced regulatory overhang from a patent-related ITC investigation tied to Netlist claims, which may be adding some caution even as the stock trends higher. Is Broadcom (AVGO) Still Undervalued As Netlist Patent Claims Test Sentiment?
• Negative Sentiment: One AI-focused trading update noted that Claude AI sold Broadcom after its expected return outlook weakened, reflecting some skepticism about valuation at current levels. Claude AI Sells Broadcom (AVGO) Stock

Wall Street Analysts Forecast Growth

Several research firms have issued reports on AVGO. KeyCorp reaffirmed an “overweight” rating and issued a $575.00 price target (up from $500.00) on shares of Broadcom in a report on Thursday, June 4th. Jefferies Financial Group set a $550.00 target price on Broadcom and gave the stock a “buy” rating in a report on Thursday, June 4th. Morgan Stanley set a $502.00 target price on Broadcom and gave the stock an “overweight” rating in a research report on Thursday, June 4th. Benchmark upped their target price on Broadcom from $485.00 to $545.00 and gave the company a “buy” rating in a report on Thursday, June 4th. Finally, Erste Group Bank reissued a “hold” rating on shares of Broadcom in a research note on Tuesday, July 7th. One investment analyst has rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $493.24.

Broadcom Trading Up 2.7%

The company has a quick ratio of 2.01, a current ratio of 2.24 and a debt-to-equity ratio of 0.71. The firm has a market cap of $1.89 trillion, a price-to-earnings ratio of 66.14, a PEG ratio of 0.66 and a beta of 1.45. The company has a 50-day moving average price of $399.63 and a 200 day moving average price of $365.90.

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 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 firm had revenue of $22.19 billion for the quarter, compared to analyst estimates of $22.13 billion. During the same period in the previous year, the firm earned $1.58 earnings per share. Broadcom’s quarterly revenue was up 47.9% on a year-over-year basis. As a group, research analysts anticipate that Broadcom Inc. will post 10.24 earnings per share 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 given a $0.65 dividend. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend was Monday, June 22nd. Broadcom’s dividend payout ratio is 43.33%.

Insider Activity at Broadcom

In related news, Director Harry L. You acquired 1,000 shares of the stock in a transaction that occurred 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 transaction, the director owned 38,466 shares of the company’s stock, valued at approximately $14,369,743.62. This trade represents a 2.67% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Gayla J. Delly sold 1,890 shares of the company’s stock in a transaction that occurred on Wednesday, July 8th. The shares were sold at an average price of $385.38, for a total transaction of $728,368.20. Following the completion of the transaction, the director owned 31,326 shares in the company, valued at approximately $12,072,413.88. This represents a 5.69% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 61,644 shares of company stock valued at $24,016,214. 1.90% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of AVGO. Vanguard Group Inc. grew its holdings in Broadcom by 0.8% in the 4th quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer’s stock valued at $167,064,997,000 after buying an additional 3,919,715 shares during the last quarter. State Street Corp grew its stake in shares of Broadcom by 2.7% in the fourth 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 last quarter. Geode Capital Management LLC grew its stake in shares of Broadcom by 1.4% in the fourth quarter. Geode Capital Management LLC now owns 111,277,280 shares of the semiconductor manufacturer’s stock worth $38,396,634,000 after acquiring an additional 1,548,699 shares during the last quarter. Price T Rowe Associates Inc. MD increased its position in Broadcom by 3.0% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 85,546,083 shares of the semiconductor manufacturer’s stock worth $29,607,500,000 after acquiring an additional 2,491,644 shares during the period. Finally, Norges Bank bought a new position in Broadcom during the fourth quarter worth $24,252,196,000. 76.43% of the stock is owned by institutional investors and hedge funds.

Broadcom Company Profile

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.