Broadcom (NASDAQ:AVGO) Shares Up 2% – Here’s Why

Broadcom Inc. (NASDAQ:AVGO)’s stock price was up 2% on Monday . The company traded as high as $383.59 and last traded at $378.16. 14,191,876 shares traded hands during mid-day trading, a decline of 46% from the average daily volume of 26,123,867 shares. The stock had previously closed at $370.83.

Trending Headlines about Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Morgan Stanley reiterated an overweight view on Broadcom, saying AVGO remains one of the most attractive risk-reward names in semiconductors for AI infrastructure exposure. Broadcom stock gains 2% today: here’s why
• Positive Sentiment: Analysts continue to view the recent chip selloff as a buying opportunity, with Broadcom cited alongside Nvidia as a top value pick in AI-related semiconductors. Memory Stock Sell-Off Created a ‘Strong Entry Point,’ Says Morgan Stanley. Investors Are Buying In.
• Positive Sentiment: Broadcom’s AI business remains a key growth driver, with recent commentary emphasizing a strong revenue mix shift toward AI chips and improving long-term investment fundamentals. Broadcom’s AI Mix Shift: How AVGO’s Booming AI Chip Business Changes the Investment Thesis
• Positive Sentiment: Broadcom also gained attention after landing a major Standard Chartered deal to support cloud modernization across 54 markets, underscoring the strength of its infrastructure software business. Broadcom (AVGO) Lands Standard Chartered Deal To Power Banking Cloud In 54 Markets
• Neutral Sentiment: Broader semiconductor sentiment remains shaky after the SOX index entered a bear market, which could keep pressure on chip stocks even as investors selectively buy leaders like Broadcom. Semiconductor stocks enter bear market: Is bubble burst next?

Analyst Ratings Changes

AVGO has been the subject of a number of research analyst reports. DA Davidson lifted their price target on shares of Broadcom from $375.00 to $400.00 and gave the stock a “neutral” rating in a research note on Thursday, June 4th. Jefferies Financial Group set a $550.00 price objective on shares of Broadcom and gave the company a “buy” rating in a research report on Thursday, June 4th. KeyCorp restated an “overweight” rating and issued a $575.00 target price (up from $500.00) on shares of Broadcom in a report on Thursday, June 4th. Susquehanna reaffirmed a “positive” rating and issued a $490.00 target price (up from $450.00) on shares of Broadcom in a research report on Thursday, May 28th. Finally, Royal Bank Of Canada increased their price target on Broadcom from $360.00 to $400.00 and gave the company a “sector perform” rating in a report on Thursday, June 4th. One research analyst has rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, Broadcom has an average rating of “Moderate Buy” and a consensus price target of $493.24.

Broadcom Price Performance

The firm’s 50-day moving average is $401.29 and its 200-day moving average is $365.42. The company has a debt-to-equity ratio of 0.71, a current ratio of 2.24 and a quick ratio of 2.01. The company has a market capitalization of $1.80 trillion, a P/E ratio of 63.03, a price-to-earnings-growth ratio of 0.65 and a beta of 1.45.

Broadcom (NASDAQ:AVGO) last released its quarterly earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share for the quarter, topping the consensus estimate of $2.40 by $0.04. The business had revenue of $22.19 billion for 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 quarterly revenue was up 47.9% on a year-over-year basis. During the same period last year, the firm earned $1.58 earnings per share. Analysts predict that Broadcom Inc. will post 10.24 EPS for the current fiscal year.

Broadcom Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 22nd were issued a $0.65 dividend. This represents a $2.60 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend was Monday, June 22nd. Broadcom’s dividend payout ratio (DPR) is currently 43.33%.

Insider Buying and Selling

In other Broadcom news, Director Justine Page sold 1,602 shares of the business’s stock in a transaction dated Monday, June 29th. The stock was sold at an average price of $373.86, for a total transaction of $598,923.72. Following the completion of the sale, the director owned 17,426 shares of the company’s stock, valued at approximately $6,514,884.36. The trade was a 8.42% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider Mark David Brazeal sold 25,000 shares of the company’s stock in a transaction dated Friday, July 10th. The stock was sold at an average price of $401.33, for a total value of $10,033,250.00. Following the completion of the sale, the insider owned 194,989 shares of the company’s stock, valued at approximately $78,254,935.37. The trade was a 11.36% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 61,644 shares of company stock worth $24,016,214. Company insiders own 1.90% of the company’s stock.

Institutional Investors Weigh In On Broadcom

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. ROSS JOHNSON & Associates LLC boosted its position in shares of Broadcom by 1,320.0% in the fourth quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer’s stock worth $25,000 after purchasing an additional 66 shares during the period. Networth Advisors LLC increased its stake in shares of Broadcom by 546.2% in the first quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer’s stock worth $26,000 after purchasing an additional 71 shares in the last quarter. SWAN Capital LLC raised its position in shares of Broadcom by 261.9% during the 4th 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 period. Nvest Wealth Strategies Inc. purchased a new position in shares of Broadcom during the 4th quarter valued at $33,000. Finally, Family CFO Inc purchased a new position in shares of Broadcom during the 4th quarter valued at $35,000. 76.43% of the stock is owned by hedge funds and other institutional investors.

Broadcom Company Profile

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.