Broadcom (NASDAQ:AVGO) Stock Jumps 1.8% – Time to Buy?

Broadcom Inc. (NASDAQ:AVGO)’s stock price was up 1.8% during trading on Monday. The company traded as high as $340.20 and last traded at $334.59. Approximately 17,100,606 shares were traded during mid-day trading, a decline of 32% from the average session volume of 24,994,219 shares. The stock had previously closed at $328.75.

Broadcom News Summary

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom benefited from renewed buying across AI stocks after a recent pullback. Institutional investors appear to be reducing bearish positions and adding exposure to semiconductor instruments, suggesting confidence that the AI hardware cycle remains intact. High-Voltage Capital Floods Chip Stocks
• Positive Sentiment: Analysts and bullish commentators continue to point to substantial upside for Broadcom, citing its custom-chip business, AI networking exposure, strong cash generation and demand from hyperscale customers. Some coverage argues the stock’s underperformance and decline from its high have created a more attractive entry point. Broadcom Went Nowhere for a Year
• Positive Sentiment: GF Securities said a reported delay to Alphabet’s next TPU should not materially weaken Broadcom’s position among Google’s custom-chip partners. This reduces concern that a major customer delay will significantly affect Broadcom’s AI opportunity. Google TPU Delay and Broadcom
• Positive Sentiment: Broadcom CEO Hock Tan expects AI-compute demand to exceed supply through 2029 or 2030, supporting a long-duration growth outlook for custom accelerators and networking silicon. Broadcom CEO on AI Demand

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on AVGO shares. UBS Group downgraded Broadcom from a “buy” rating to a “hold” rating in a research report on Thursday, September 3rd. Arete Research lifted their price target on Broadcom from $488.00 to $530.00 and gave the company a “buy” rating in a report on Tuesday, July 21st. Citigroup reaffirmed a “buy” rating and set a $515.00 price objective (up from $500.00) on shares of Broadcom in a research note on Friday, September 4th. Piper Sandler assumed coverage on shares of Broadcom in a research note on Wednesday, September 9th. They set an “overweight” rating and a $460.00 price objective for the company. Finally, TD Cowen reiterated a “buy” rating and set a $475.00 price objective (down from $500.00) on shares of Broadcom in a report on Thursday, September 3rd. One analyst has rated the stock with a Strong Buy rating, thirty-seven have assigned a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $527.20.

Broadcom Price Performance

The company’s 50 day moving average price is $364.33 and its 200-day moving average price is $384.14. The company has a market capitalization of $1.60 trillion, a PE ratio of 42.73 and a beta of 1.46. The company has a current ratio of 2.50, a quick ratio of 2.29 and a debt-to-equity ratio of 0.57.

Broadcom (NASDAQ:AVGO) last released its quarterly earnings data on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 EPS for the quarter, topping analysts’ consensus estimates of $3.22 by $0.10. The business had revenue of $29.59 billion during the quarter, compared to the consensus estimate of $29.24 billion. Broadcom had a return on equity of 48.33% and a net margin of 42.94%. The business’s revenue for the quarter was up 85.5% on a year-over-year basis. During the same period in the prior year, the firm posted $1.69 EPS. On average, sell-side analysts forecast that Broadcom Inc. will post 10.37 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Monday, September 21st were given a dividend of $0.65 per share. This represents a $2.60 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date of this dividend was Monday, September 21st. Broadcom’s payout ratio is 33.21%.

Hedge Funds Weigh In On Broadcom

Several hedge funds and other institutional investors have recently modified their holdings of the company. James Hambro & Partners LLP increased its holdings in Broadcom by 3.0% in the 3rd quarter. James Hambro & Partners LLP now owns 261,554 shares of the semiconductor manufacturer’s stock valued at $91,849,000 after purchasing an additional 7,523 shares in the last quarter. Richards Merrill & Peterson Inc. lifted its stake in shares of Broadcom by 12.5% during the third quarter. Richards Merrill & Peterson Inc. now owns 8,084 shares of the semiconductor manufacturer’s stock worth $2,839,000 after purchasing an additional 898 shares in the last quarter. New Wave Wealth Advisors LLC lifted its stake in shares of Broadcom by 14.9% during the third quarter. New Wave Wealth Advisors LLC now owns 2,408 shares of the semiconductor manufacturer’s stock worth $860,000 after purchasing an additional 312 shares in the last quarter. Talbot Financial LLC lifted its stake in shares of Broadcom by 2.5% during the third quarter. Talbot Financial LLC now owns 85,181 shares of the semiconductor manufacturer’s stock worth $29,915,000 after purchasing an additional 2,053 shares in the last quarter. Finally, Prairie Advisory LLC boosted its position in shares of Broadcom by 93.1% in the third quarter. Prairie Advisory LLC now owns 2,758 shares of the semiconductor manufacturer’s stock worth $969,000 after buying an additional 1,330 shares during the period. 76.43% of the stock is owned by institutional investors and hedge funds.

About Broadcom

Broadcom Inc (NASDAQ: AVGO) is a global technology company that designs, develops and supplies semiconductor and infrastructure software products. Its semiconductor solutions support data center, networking, broadband, wireless communications, storage, industrial and other electronic applications.

The company’s semiconductor portfolio includes networking and switching components, custom accelerators, connectivity and wireless devices, broadband equipment, optical products, storage controllers and related infrastructure technologies.