Broadcom (NASDAQ:AVGO) Shares Up 4.7% – Here’s Why

Broadcom Inc. (NASDAQ:AVGO) shot up 4.7% during trading on Thursday . The company traded as high as $412.70 and last traded at $411.35. Approximately 44,876,038 shares changed hands during mid-day trading, an increase of 70% from the average session volume of 26,362,186 shares. The stock had previously closed at $392.90.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom expanded its cash tender offer to $3 billion from $2.5 billion after strong investor demand for its debt, a move that can signal confidence in the company’s balance sheet and helped lift the stock. Broadcom stock rises as debt buyback expands and AI outlook stays strong
• Positive Sentiment: Wall Street commentary remained upbeat, with JPMorgan reiterating that investors should be “aggressive buyers” of Broadcom and arguing the market still underestimates the company’s long-term AI opportunity. AVGO stock jumps — JPMorgan says investors should be ‘aggressive buyers’ of Broadcom at current levels
• Positive Sentiment: Analysts also highlighted Broadcom’s massive AI pipeline and multi-year growth potential, reinforcing investor confidence in demand for its custom AI chips and related infrastructure products. Broadcom’s Massive AI Pipeline Secures Multi-Year Growth, Analyst Says
• Neutral Sentiment: Several media and investor commentary pieces referenced Broadcom as a favored AI stock and noted recent buying interest from high-profile investors, but these items were more sentiment-driven than company-specific catalysts. Jim Cramer Shares Unmissable Insights About Broadcom (AVGO)
• Negative Sentiment: One note flagged contracting gross margins year over year, which could raise questions about profitability even as revenue growth remains strong. AVGO’s Gross Margin Contracts Y/Y: Is Growth Getting Harder?

Wall Street Analyst Weigh In

Several brokerages have issued reports on AVGO. Evercore reaffirmed an “outperform” rating and issued a $582.00 target price on shares of Broadcom in a report on Tuesday, May 19th. KeyCorp reiterated an “overweight” rating and set a $575.00 price target (up from $500.00) on shares of Broadcom in a report on Thursday, June 4th. Royal Bank Of Canada raised their price target on shares of Broadcom from $360.00 to $400.00 and gave the company a “sector perform” rating in a research report on Thursday, June 4th. UBS Group set a $485.00 price objective on Broadcom and gave the company a “buy” rating in a research report on Thursday, June 4th. Finally, Mizuho increased their target price on Broadcom from $480.00 to $530.00 and gave the company an “outperform” rating in a research note on Thursday, June 4th. One analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $490.13.

Broadcom Price Performance

The business’s 50 day moving average price is $408.66 and its 200 day moving average price is $363.11. The stock has a market capitalization of $1.96 trillion, a P/E ratio of 68.56, a price-to-earnings-growth ratio of 0.66 and a beta of 1.41. The company has a debt-to-equity ratio of 0.71, a current ratio of 2.24 and a quick ratio of 2.01.

Broadcom (NASDAQ:AVGO) last issued its quarterly earnings data on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share for the quarter, beating analysts’ consensus estimates of $2.40 by $0.04. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The company had revenue of $22.19 billion for the quarter, compared to the consensus estimate of $22.13 billion. During the same quarter in the prior year, the firm earned $1.58 earnings per share. The firm’s revenue for the quarter was up 47.9% compared to the same quarter last year. Sell-side analysts forecast that Broadcom Inc. will post 10.24 EPS for the current year.

Broadcom Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Monday, June 22nd will be paid a dividend of $0.65 per share. The ex-dividend date is Monday, June 22nd. This represents a $2.60 dividend on an annualized basis and a yield of 0.6%. Broadcom’s payout ratio is currently 43.33%.

Insider Activity

In other Broadcom news, Director Justine Page sold 2,018 shares of the stock in a transaction dated Wednesday, April 8th. The stock was sold at an average price of $353.00, for a total value of $712,354.00. Following the transaction, the director owned 18,164 shares of the company’s stock, valued at approximately $6,411,892. This represents a 10.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Harry L. You bought 1,000 shares of the company’s stock in a transaction on Thursday, June 11th. The stock was purchased at an average cost of $373.57 per share, for a total transaction of $373,570.00. Following the completion of the transaction, the director directly owned 38,466 shares of the company’s stock, valued at approximately $14,369,743.62. The trade was a 2.67% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last three months, insiders sold 51,233 shares of company stock worth $18,125,134. Insiders own 1.90% of the company’s stock.

Hedge Funds Weigh In On Broadcom

Institutional investors and hedge funds have recently made changes to their positions in the business. ROSS JOHNSON & Associates LLC boosted its stake 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 last quarter. SWAN Capital LLC increased its stake in shares of Broadcom by 261.9% in the 4th quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer’s stock worth $26,000 after purchasing an additional 55 shares in the last quarter. Networth Advisors LLC increased its stake in shares of Broadcom by 546.2% in 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 in the last quarter. Miller Global Investments LLC purchased a new position in Broadcom during the fourth quarter valued at $31,000. Finally, Nvest Wealth Strategies Inc. purchased a new position in Broadcom during the fourth quarter valued at $33,000. Hedge funds and other institutional investors own 76.43% of the company’s stock.

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.