Broadcom (NASDAQ:AVGO) Trading Up 2% – Here’s What Happened

Shares of Broadcom Inc. (NASDAQ:AVGO) were up 2% during trading on Wednesday . The stock traded as high as $364.87 and last traded at $358.98. Approximately 17,024,733 shares were traded during mid-day trading, a decline of 33% from the average daily volume of 25,585,150 shares. The stock had previously closed at $351.94.

Wall Street Analyst Weigh In

Several research firms have commented on AVGO. Evercore ISI lifted their target price on shares of Broadcom from $342.00 to $403.00 and gave the stock an “outperform” rating in a research note on Wednesday, October 15th. Arete Research raised shares of Broadcom to a “strong-buy” rating in a research note on Monday, July 28th. Deutsche Bank Aktiengesellschaft set a $400.00 target price on shares of Broadcom and gave the stock a “buy” rating in a research note on Tuesday, October 14th. Bank of America lifted their target price on shares of Broadcom from $300.00 to $400.00 and gave the stock a “buy” rating in a research note on Friday, September 5th. Finally, Rosenblatt Securities lifted their target price on shares of Broadcom from $340.00 to $400.00 and gave the stock a “buy” rating in a research note on Friday, September 5th. Three analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating and one has given a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Buy” and an average target price of $372.52.

Broadcom Stock Performance

The company has a market cap of $1.70 trillion, a price-to-earnings ratio of 91.58, a price-to-earnings-growth ratio of 1.46 and a beta of 1.19. The stock’s fifty day simple moving average is $341.75 and its two-hundred day simple moving average is $286.75. The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.37 and a current ratio of 1.50.

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

Broadcom Dividend Announcement

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 $0.59 dividend. This represents a $2.36 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend was Monday, September 22nd. Broadcom’s dividend payout ratio (DPR) is currently 60.20%.

Insiders Place Their Bets

In other news, insider Mark David Brazeal sold 16,558 shares of the firm’s stock in a transaction on Wednesday, September 17th. The shares were sold at an average price of $347.61, for a total value of $5,755,726.38. Following the transaction, the insider owned 329,302 shares of the company’s stock, valued at approximately $114,468,668.22. This trade represents a 4.79% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Henry Samueli sold 368,797 shares of the firm’s stock in a transaction on Wednesday, September 24th. The shares were sold at an average price of $337.91, for a total transaction of $124,620,194.27. Following the completion of the transaction, the director directly owned 37,722,534 shares in the company, valued at approximately $12,746,821,463.94. This represents a 0.97% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have bought 3,550 shares of company stock worth $1,227,869 and have sold 665,271 shares worth $225,464,248. 2.00% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Broadcom

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Cheviot Value Management LLC purchased a new stake in Broadcom during the 1st quarter worth $25,000. Sawyer & Company Inc increased its stake in Broadcom by 62.1% during the 2nd quarter. Sawyer & Company Inc now owns 94 shares of the semiconductor manufacturer’s stock worth $26,000 after buying an additional 36 shares during the period. Longfellow Investment Management Co. LLC purchased a new stake in Broadcom during the 2nd quarter worth $27,000. Legend Financial Advisors Inc. purchased a new stake in Broadcom during the 2nd quarter worth $28,000. Finally, Teachers Insurance & Annuity Association of America purchased a new stake in Broadcom during the 2nd quarter worth $28,000. Hedge funds and other institutional investors own 76.43% of the company’s stock.

Broadcom Company Profile

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.