Broadcom (NASDAQ:AVGO) Trading Up 2.8% After Analyst Upgrade

Broadcom Inc. (NASDAQ:AVGO)’s stock price was up 2.8% on Monday after Wall Street Zen upgraded the stock from a hold rating to a buy rating. The company traded as high as $402.84 and last traded at $396.60. Approximately 36,367,527 shares changed hands during trading, an increase of 42% from the average daily volume of 25,670,145 shares. The stock had previously closed at $385.73.

AVGO has been the topic of a number of other reports. Mizuho upped their price target on shares of Broadcom from $480.00 to $530.00 and gave the stock an “outperform” rating in a research note on Thursday. Susquehanna reaffirmed a “positive” rating and set a $490.00 price target (up from $450.00) on shares of Broadcom in a research note on Thursday, May 28th. DA Davidson increased their price objective on shares of Broadcom from $375.00 to $400.00 and gave the company a “neutral” rating in a research note on Thursday. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a $515.00 price objective (up from $430.00) on shares of Broadcom in a research note on Thursday. Finally, Citigroup reissued a “buy” rating on shares of Broadcom in a research note on Thursday. One analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, Broadcom currently has an average rating of “Moderate Buy” and an average target price of $490.13.

Insider Activity

In other Broadcom news, CFO Kirsten M. Spears sold 36,292 shares of the company’s stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $321.60, for a total value of $11,671,507.20. Following the transaction, the chief financial officer directly owned 327,760 shares in the company, valued at approximately $105,407,616. This represents a 9.97% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Charlie B. Kawwas sold 39,116 shares of the company’s stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $321.61, for a total transaction of $12,580,096.76. Following the completion of the transaction, the insider owned 74,626 shares in the company, valued at approximately $24,000,467.86. This trade represents a 34.39% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 324,282 shares of company stock valued at $106,425,249 in the last 90 days. Company insiders own 1.90% of the company’s stock.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s fiscal Q2 results were solid, with revenue and EPS both beating expectations, and AI semiconductor revenue jumped sharply year over year. Broadcom Shares Tumble Despite Surging AI Revenue. Should Investors Buy the Dip?
• Positive Sentiment: Bank of America raised its price target on Broadcom to $530 from $450 and kept a Buy rating, reinforcing bullish Street sentiment. Is Broadcom (AVGO) the Best Stock in Chase Coleman’s Tiger Global?
• Positive Sentiment: Several commentary pieces argue the selloff was overdone and that the market may be missing the bigger AI growth story at Broadcom. Broadcom’s Selloff Misses The Bigger Story
• Neutral Sentiment: Broadcom also announced expanded security investments for its Spring and Java ecosystem to prepare customers for AI-enabled threats, a longer-term strategic move rather than an immediate revenue catalyst. Broadcom Expands Its Investment in Spring and Java Ecosystem Security to Prepare Customers for AI-Enabled Threats
• Negative Sentiment: The main drag on the stock is that investors wanted stronger forward sales guidance after the earnings beat, and the company did not deliver enough upside to satisfy high expectations. Why Is Broadcom Stock Crashing, and is it a Generational Buying Opportunity?

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. ROSS JOHNSON & Associates LLC lifted its holdings in shares of Broadcom by 1,320.0% during the 4th quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer’s stock worth $25,000 after acquiring an additional 66 shares during the period. Networth Advisors LLC lifted its holdings 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 acquiring an additional 71 shares during the period. SWAN Capital LLC lifted its holdings in shares of Broadcom by 261.9% during the 4th quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer’s stock worth $26,000 after acquiring an additional 55 shares during the period. Miller Global Investments LLC purchased a new position in shares of Broadcom during the 4th quarter worth about $31,000. Finally, Nvest Wealth Strategies Inc. purchased a new position in shares of Broadcom during the 4th quarter worth about $33,000. 76.43% of the stock is currently owned by hedge funds and other institutional investors.

Broadcom Stock Performance

The stock’s 50-day moving average is $396.22 and its 200-day moving average is $362.04. The stock has a market cap of $1.88 trillion, a price-to-earnings ratio of 66.10, a P/E/G ratio of 0.70 and a beta of 1.41. The company has a current ratio of 2.24, a quick ratio of 2.01 and a debt-to-equity ratio of 0.71.

Broadcom (NASDAQ:AVGO) last posted its earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.40 by $0.04. The firm had revenue of $22.19 billion during the quarter, compared to the consensus estimate of $22.13 billion. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The company’s revenue was up 47.9% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.58 EPS. On average, analysts expect that Broadcom Inc. will post 9.97 EPS for the current year.

Broadcom Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 22nd will be given a dividend of $0.65 per share. This represents a $2.60 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend is Monday, June 22nd. Broadcom’s dividend payout ratio is 43.33%.

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.