Broadcom (NASDAQ:AVGO) Upgraded to Hold at DA Davidson

DA Davidson upgraded shares of Broadcom (NASDAQ:AVGO) to a hold rating in a report released on Friday,Zacks.com reports.

Several other research analysts have also recently weighed in on the stock. Zacks Research upgraded shares of Broadcom from a “hold” rating to a “strong-buy” rating in a report on Tuesday, February 3rd. Bank of America upped their target price on shares of Broadcom from $460.00 to $500.00 and gave the stock a “buy” rating in a research note on Friday, December 12th. Truist Financial increased their target price on Broadcom from $500.00 to $510.00 and gave the stock a “buy” rating in a report on Friday, December 19th. Piper Sandler restated an “overweight” rating and issued a $430.00 price target (up from $375.00) on shares of Broadcom in a report on Friday, December 12th. Finally, Deutsche Bank Aktiengesellschaft set a $430.00 price objective on Broadcom and gave the stock a “buy” rating in a report on Friday, December 12th. Two research analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Buy” and a consensus target price of $433.87.

Broadcom Stock Down 1.8%

NASDAQ:AVGO opened at $325.17 on Friday. Broadcom has a 1 year low of $138.10 and a 1 year high of $414.61. The company has a current ratio of 1.71, a quick ratio of 1.58 and a debt-to-equity ratio of 0.76. The stock has a market cap of $1.54 trillion, a price-to-earnings ratio of 68.31, a PEG ratio of 1.07 and a beta of 1.21. The stock has a 50-day moving average price of $343.88 and a two-hundred day moving average price of $340.23.

Broadcom (NASDAQ:AVGO) last released its quarterly earnings results on Thursday, December 11th. The semiconductor manufacturer reported $1.95 EPS for the quarter, topping analysts’ consensus estimates of $1.87 by $0.08. Broadcom had a return on equity of 37.45% and a net margin of 36.20%.The company had revenue of $18.02 billion for the quarter, compared to analyst estimates of $17.46 billion. During the same quarter last year, the firm posted $1.42 earnings per share. Broadcom’s revenue was up 28.2% compared to the same quarter last year. As a group, equities analysts expect that Broadcom will post 5.38 earnings per share for the current year.

Broadcom Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, December 31st. Investors of record on Monday, December 22nd were given a dividend of $0.65 per share. This represents a $2.60 annualized dividend and a yield of 0.8%. This is a boost from Broadcom’s previous quarterly dividend of $0.59. The ex-dividend date of this dividend was Monday, December 22nd. Broadcom’s payout ratio is currently 54.62%.

Insider Buying and Selling

In related news, insider Mark David Brazeal sold 38,281 shares of the firm’s stock in a transaction on Wednesday, December 17th. The shares were sold at an average price of $327.65, for a total value of $12,542,769.65. Following the completion of the transaction, the insider directly owned 266,494 shares of the company’s stock, valued at approximately $87,316,759.10. This trade represents a 12.56% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Henry Samueli sold 320,316 shares of the business’s stock in a transaction on Monday, December 8th. The stock was sold at an average price of $400.53, for a total transaction of $128,296,167.48. Following the transaction, the director owned 37,326,540 shares in the company, valued at approximately $14,950,399,066.20. The trade was a 0.85% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 779,101 shares of company stock worth $283,804,325 over the last 90 days. Company insiders own 2.00% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Vanguard Group Inc. boosted its position in shares of Broadcom by 1.3% in the second quarter. Vanguard Group Inc. now owns 483,442,939 shares of the semiconductor manufacturer’s stock valued at $133,261,046,000 after acquiring an additional 6,222,802 shares during the period. State Street Corp lifted its stake in Broadcom by 2.7% in the 4th quarter. State Street Corp now owns 190,084,351 shares of the semiconductor manufacturer’s stock worth $65,788,194,000 after purchasing an additional 5,040,801 shares in the last quarter. Geode Capital Management LLC boosted its holdings in Broadcom by 1.4% in the 4th quarter. Geode Capital Management LLC now owns 111,277,280 shares of the semiconductor manufacturer’s stock valued at $38,396,634,000 after purchasing an additional 1,548,699 shares during the period. Norges Bank purchased a new position in shares of Broadcom during the 4th quarter valued at $24,252,196,000. Finally, Invesco Ltd. grew its position in shares of Broadcom by 1.8% during the 3rd quarter. Invesco Ltd. now owns 39,149,651 shares of the semiconductor manufacturer’s stock valued at $12,915,861,000 after purchasing an additional 700,021 shares in the last quarter. Institutional investors own 76.43% of the company’s stock.

Key Stories Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Cathie Wood’s ARK filed a meaningful purchase (~87,148 shares), signaling institutional conviction in Broadcom’s exposure to AI infrastructure. Broadcom Inc. (AVGO) Draws ARK Investment Amid Positive AI Growth Outlook
• Positive Sentiment: Mirova US LLC materially increased its Broadcom stake, adding another institutional buyer to demand-side flows. Mirova US LLC Boosts Broadcom Stake by 589,713 Shares
• Positive Sentiment: Broadcom unveiled a Wi?Fi 8 enterprise platform positioned for AI edge and enterprise networking — a product catalyst that could expand TAM for its networking chips. Broadcom Wi Fi 8 Launch Highlights AI Network Demand And Valuation Questions
• Positive Sentiment: Analysts and commentary are bullish on upside linked to hyperscaler CapEx (Google, Meta) and the AI infrastructure cycle — Forbes lays out a bull case toward ~$450 if demand trajectory holds. Here’s How AVGO Stock Could Rise To $450
• Neutral Sentiment: DA Davidson initiated coverage with a Neutral rating — a reminder that some sell-side views see limited near-term upside despite the AI backdrop. DA Davidson initiates coverage of Broadcom (AVGO) with neutral recommendation
• Negative Sentiment: Coverage and market commentary around the Wi?Fi 8 launch also flagged valuation concerns — investors are debating whether Broadcom’s premium multiple already prices in the AI upside. Broadcom Wi Fi 8 Launch Highlights AI Network Demand And Valuation Questions
• Negative Sentiment: Some institutional managers trimmed positions (PRIMECAP, Randolph, SCS Capital reported cuts), creating localized selling pressure even as others added shares. PRIMECAP Management Co Cuts Broadcom Stake by 27,980 Shares

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.