Broadcom (NASDAQ:AVGO) Stock Price Up 4.3% – Time to Buy?

Broadcom Inc. (NASDAQ:AVGO)’s share price traded up 4.3% on Wednesday . The stock traded as high as $400.65 and last traded at $392.90. Approximately 38,825,464 shares were traded during trading, an increase of 48% from the average daily volume of 26,158,434 shares. The stock had previously closed at $376.71.

Key Headlines Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: JPMorgan reiterated a bullish view on Broadcom, calling investors “aggressive buyers” and saying the market is underestimating the company’s long-term AI opportunity. AVGO stock jumps — JPMorgan says investors should be ‘aggressive buyers’ of Broadcom at current levels
• Positive Sentiment: Citi also highlighted Broadcom as a top chip stock, citing strong data-center demand and reinforcing investor confidence in AI-driven revenue growth. Citi Touts Broadcom Inc. (AVGO) as a Top Chip Stock on Soaring Data Center Demand
• Positive Sentiment: Broadcom expanded its cash tender offers for outstanding debt to $3 billion after strong investor participation, suggesting active balance-sheet management and helping support sentiment. Broadcom Inc. Announces Results and Upsize of Offers to Purchase for Cash Certain of its Outstanding Debt Securities
• Neutral Sentiment: An article on VMware noted that Broadcom’s software business could be set to accelerate, adding to the longer-term growth narrative but without a direct near-term catalyst. VMware: Broadcom’s Second Biggest Business Set to Accelerate
• Neutral Sentiment: Insider Mark David Brazeal sold shares in two transactions totaling more than 8,100 shares. While notable, the sales were small relative to his overall holdings and do not necessarily indicate a change in Broadcom’s outlook. Mark David Brazeal insider trading page

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on AVGO shares. Evercore reiterated an “outperform” rating and issued a $582.00 target price on shares of Broadcom in a research note on Tuesday, May 19th. TD Cowen reissued a “buy” rating and issued a $500.00 target price on shares of Broadcom in a report on Thursday, June 4th. KeyCorp restated an “overweight” rating and set a $575.00 price target (up from $500.00) on shares of Broadcom in a research report on Thursday, June 4th. Weiss Ratings raised Broadcom from a “buy (b-)” rating to a “buy (b)” rating in a report on Tuesday, June 9th. Finally, Jefferies Financial Group set a $550.00 price objective on Broadcom and gave the company a “buy” rating in a research report on Thursday, June 4th. One investment analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $490.13.

Broadcom Price Performance

The firm’s 50 day moving average price is $410.21 and its 200-day moving average price is $363.17. The company has a current ratio of 2.24, a quick ratio of 2.01 and a debt-to-equity ratio of 0.71. The company has a market cap of $1.96 trillion, a P/E ratio of 68.56, a price-to-earnings-growth ratio of 0.69 and a beta of 1.41.

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, topping 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 the consensus estimate of $22.13 billion. During the same period in the previous year, the firm posted $1.58 earnings per share. Broadcom’s revenue for the quarter was up 47.9% compared to the same quarter last year. As a group, equities research analysts expect that Broadcom Inc. will post 10.24 EPS for the current year.

Broadcom Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Monday, June 22nd will be given a dividend of $0.65 per share. The ex-dividend date is Monday, June 22nd. This represents a $2.60 annualized dividend and a dividend yield of 0.6%. Broadcom’s payout ratio is presently 43.33%.

Insider Buying and Selling

In related news, insider Mark David Brazeal sold 4,825 shares of the company’s stock in a transaction dated 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 sale, the insider owned 269,989 shares in the company, valued at approximately $106,621,355.99. This represents a 1.76% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, Director Justine Page sold 2,018 shares of the stock in a transaction dated Wednesday, April 8th. The shares were sold at an average price of $353.00, for a total value of $712,354.00. Following the completion of the transaction, the director directly owned 18,164 shares in the company, valued at $6,411,892. The trade was a 10.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 59,385 shares of company stock worth $21,301,057 over the last 90 days. 1.90% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Broadcom

Several institutional investors have recently modified their holdings of the stock. Norges Bank acquired a new stake in Broadcom in the fourth quarter worth $24,252,196,000. Cardano Risk Management B.V. boosted its position in shares of 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 worth $4,391,940,000 after purchasing an additional 11,414,701 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its holdings in shares of Broadcom by 118.1% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 18,739,006 shares of the semiconductor manufacturer’s stock valued at $5,799,889,000 after buying an additional 10,145,377 shares during the period. State Street Corp grew its holdings in shares of Broadcom by 2.7% in the 4th quarter. State Street Corp now owns 190,084,351 shares of the semiconductor manufacturer’s stock valued at $65,788,194,000 after buying an additional 5,040,801 shares during the period. Finally, Vanguard Group Inc. increased its position in shares of 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 in the last quarter. 76.43% of the stock is currently 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.