Shares of Broadcom Inc. (NASDAQ:AVGO – Get Free Report) were down 4.4% on Tuesday . The company traded as low as $376.46 and last traded at $376.71. Approximately 29,291,262 shares changed hands during trading, an increase of 13% from the average daily volume of 25,998,006 shares. The stock had previously closed at $393.94.
Key Stories Impacting Broadcom
Here are the key news stories impacting Broadcom this week:
- Positive Sentiment: Director Harry L. You bought 1,000 shares of Broadcom, which investors often view as a confidence signal from management. SEC Form 4 filing
- Positive Sentiment: Broadcom continues to be highlighted as a key beneficiary of the AI infrastructure buildout, with commentary pointing to its custom compute, networking, and semiconductor exposure. Investopedia article
- Positive Sentiment: Analyst tone remains supportive, including a reported upgrade to Strong-Buy from Wall Street Zen, which can help reinforce bullish sentiment. American Banking News article
- Neutral Sentiment: Some recent comparisons say other AI infrastructure names may offer stronger near-term upside, but Broadcom still ranks highly due to its scale and profitability. Zacks article
- Negative Sentiment: Recent market coverage said Broadcom’s shares fell after record quarterly results because investors focused on cautious AI guidance and valuation concerns, which appears to be the main drag on sentiment. Yahoo Finance article
Analyst Upgrades and Downgrades
A number of research analysts recently weighed in on AVGO shares. Susquehanna reissued a “positive” rating and set a $490.00 target price (up from $450.00) on shares of Broadcom in a report on Thursday, May 28th. Erste Group Bank raised Broadcom from a “hold” rating to a “buy” rating in a report on Friday, June 5th. Zacks Research lowered Broadcom from a “strong-buy” rating to a “hold” rating in a report on Thursday, May 21st. Mizuho upped their price objective on Broadcom from $480.00 to $530.00 and gave the company an “outperform” rating in a report on Thursday, June 4th. Finally, Rosenblatt Securities reaffirmed a “buy” rating and issued a $500.00 price objective on shares of Broadcom in a report on Thursday, June 4th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, Broadcom currently has a consensus rating of “Moderate Buy” and a consensus target price of $490.13.
Broadcom Trading Down 4.4%
The company has a debt-to-equity ratio of 0.71, a quick ratio of 2.01 and a current ratio of 2.24. The business has a fifty day simple moving average of $405.85 and a 200 day simple moving average of $363.29. The stock has a market capitalization of $1.79 trillion, a price-to-earnings ratio of 62.80, a price-to-earnings-growth ratio of 0.67 and a beta of 1.41.
Broadcom (NASDAQ:AVGO – Get Free Report) last issued its quarterly earnings data on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, beating analysts’ consensus estimates of $2.40 by $0.04. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.The firm had revenue of $22.19 billion for the quarter, compared to analyst estimates of $22.13 billion. During the same period in the prior year, the firm posted $1.58 EPS. The company’s revenue for the quarter was up 47.9% on a year-over-year basis. As a group, research analysts expect that Broadcom Inc. will post 10.24 EPS for the current year.
Broadcom Dividend Announcement
The business also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 22nd will be paid 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 is Monday, June 22nd. Broadcom’s payout ratio is 43.33%.
Insider Buying and Selling at Broadcom
In other news, Director Gayla J. Delly sold 1,000 shares of the company’s stock in a transaction that occurred on Thursday, April 9th. The shares were sold at an average price of $358.31, for a total transaction of $358,310.00. Following the completion of the sale, the director owned 32,352 shares of the company’s stock, valued at approximately $11,592,045.12. This represents a 3.00% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Harry L. You purchased 1,000 shares of Broadcom stock in a transaction that occurred on Thursday, June 11th. The shares were purchased at an average price of $373.57 per share, for a total transaction of $373,570.00. Following the transaction, the director directly owned 38,466 shares in the company, valued at $14,369,743.62. This represents a 2.67% increase in their position. The SEC filing for this purchase provides additional information. Insiders have sold a total of 51,233 shares of company stock valued at $18,125,134 over the last three months. 1.90% of the stock is owned by insiders.
Institutional Investors Weigh In On Broadcom
Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Norges Bank acquired a new position in shares of Broadcom during the 4th quarter worth $24,252,196,000. Cardano Risk Management B.V. grew its position in Broadcom by 895.2% in the fourth quarter. Cardano Risk Management B.V. now owns 12,689,800 shares of the semiconductor manufacturer’s stock valued at $4,391,940,000 after acquiring an additional 11,414,701 shares during the last quarter. Arrowstreet Capital Limited Partnership grew its position in Broadcom by 118.1% in the first quarter. Arrowstreet Capital Limited Partnership now owns 18,739,006 shares of the semiconductor manufacturer’s stock valued at $5,799,889,000 after acquiring an additional 10,145,377 shares during the last quarter. State Street Corp raised its stake in Broadcom by 2.7% during the fourth quarter. State Street Corp now owns 190,084,351 shares of the semiconductor manufacturer’s stock worth $65,788,194,000 after acquiring an additional 5,040,801 shares in the last quarter. Finally, Vanguard Group Inc. lifted its holdings in shares of Broadcom by 0.8% in the fourth quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer’s stock worth $167,064,997,000 after acquiring an additional 3,919,715 shares during the last quarter. 76.43% of the stock is currently owned by 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.
Featured Articles
- Five stocks we like better than Broadcom
- Gravity Check: Houston, SpaceX Has a Valuation Problem
- Strategy’s Bitcoin Rally Has a Hidden Engine
- Okta’s AI Moment May Be Bigger Than Investors Realize
- 3 Rate-Ready Stocks for the New Fed Chair’s First Big Test
Receive News & Ratings for Broadcom Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Broadcom and related companies with MarketBeat.com's FREE daily email newsletter.
