Broadcom (NASDAQ:AVGO) Shares Up 1.3% – Should You Buy?

Broadcom Inc. (NASDAQ:AVGO) shares rose 1.3% during mid-day trading on Tuesday . The stock traded as high as $397.33 and last traded at $389.11. 18,656,998 shares traded hands during trading, a decline of 29% from the average daily volume of 26,278,639 shares. The stock had previously closed at $384.05.

Broadcom News Roundup

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom announced a long-term strategic deal with Standard Chartered to build a secure private-cloud foundation for critical banking services across 54 global markets, reinforcing demand for its infrastructure and security technology. Standard Chartered Selects Broadcom to Deliver Secure, Always-On Banking Services at Global Scale
• Positive Sentiment: Multiple reports continue to frame Broadcom as a major AI winner, with analysts highlighting strong AI growth, record bookings, and a deepened role in custom-chip and AI compute supply chains. Snowflake vs. Broadcom: Which Enterprise AI Stock Is the Smarter Buy?
• Positive Sentiment: Wall Street continues to view Broadcom favorably, with brokerage coverage pointing to a “Moderate Buy” consensus and additional upside implied by recent price targets. Broadcom Inc. (NASDAQ:AVGO) Given Average Recommendation of “Moderate Buy” by Brokerages
• Neutral Sentiment: Analyst commentary and price-prediction pieces are keeping AVGO in the spotlight, but they do not add new operating data and are more sentiment-driven than fundamental. Wall Street Analysts See a 32.76% Upside in Broadcom Inc. (AVGO): Can the Stock Really Move This High?
• Negative Sentiment: Sentiment was tempered by another insider sale, as Broadcom executive Mark David Brazeal sold 25,000 shares, which can raise caution even though it does not necessarily signal a business problem. Insider Selling: Broadcom (NASDAQ:AVGO) Insider Sells $10,033,250.00 in Stock

Analyst Ratings Changes

Several research firms have recently commented on AVGO. Royal Bank Of Canada boosted their target price on shares of Broadcom from $360.00 to $400.00 and gave the stock a “sector perform” rating in a report on Thursday, June 4th. Dbs Bank raised Broadcom to a “moderate buy” rating in a research note on Thursday, June 18th. UBS Group set a $485.00 target price on Broadcom and gave the company a “buy” rating in a research report on Thursday, June 4th. Rosenblatt Securities reissued a “buy” rating and issued a $500.00 price objective on shares of Broadcom in a research note on Thursday, June 4th. Finally, Weiss Ratings cut Broadcom from a “buy (b)” rating to a “buy (b-)” rating in a research note on Friday, June 26th. One analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, Broadcom presently has an average rating of “Moderate Buy” and an average target price of $493.24.

Broadcom Stock Performance

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 business has a 50 day simple moving average of $403.23 and a two-hundred day simple moving average of $365.11. The firm has a market cap of $1.88 trillion, a PE ratio of 65.71, a price-to-earnings-growth ratio of 0.68 and a beta of 1.45.

Broadcom (NASDAQ:AVGO) last issued its earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share (EPS) 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 analyst estimates of $22.13 billion. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The business’s revenue was up 47.9% on a year-over-year basis. During the same period in the previous year, the firm earned $1.58 earnings per share. As a group, equities research analysts forecast that Broadcom Inc. will post 10.24 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

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

Insider Activity at Broadcom

In other news, Director Gayla J. Delly sold 1,890 shares of the firm’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 transaction, the director directly owned 31,326 shares of the company’s stock, valued at approximately $12,072,413.88. This trade represents a 5.69% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Harry L. You purchased 1,000 shares of the firm’s stock in a transaction dated Thursday, June 11th. The shares were bought at an average cost of $373.57 per share, with a total value of $373,570.00. Following the purchase, the director directly owned 38,466 shares of the company’s stock, valued at approximately $14,369,743.62. This represents a 2.67% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have sold 61,644 shares of company stock valued at $24,016,214 over the last 90 days. 1.90% of the stock is currently owned by insiders.

Institutional Trading of Broadcom

Several institutional investors and hedge funds have recently made changes to their positions in the company. ROSS JOHNSON & Associates LLC increased its holdings in Broadcom by 1,320.0% during the fourth quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer’s stock valued at $25,000 after buying an additional 66 shares during the period. Networth Advisors LLC lifted its stake in shares of Broadcom by 546.2% during the 1st quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer’s stock worth $26,000 after purchasing an additional 71 shares during the last quarter. SWAN Capital LLC grew its stake in 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 purchasing an additional 55 shares during the last quarter. Miller Global Investments LLC bought a new position in Broadcom in the fourth quarter worth about $31,000. Finally, Nvest Wealth Strategies Inc. bought a new stake in shares of Broadcom in the 4th quarter valued at about $33,000. 76.43% of the stock is currently owned by institutional investors.

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.