Shares of Broadcom Inc. (NASDAQ:AVGO – Get Free Report) shot up 1.3% on Wednesday . The company traded as high as $399.00 and last traded at $394.28. Approximately 16,170,878 shares were traded during trading, a decline of 38% from the average session volume of 26,254,063 shares. The stock had previously closed at $389.11.
Broadcom News Roundup
Here are the key news stories impacting Broadcom this week:
- Positive Sentiment: Broadcom’s extended Apple chip agreement through 2031 is seen as strategically important and supportive of long-term growth. Why Broadcom (AVGO) Is Reinforcing Its Long-Term Growth With an Extended Apple Chip Partnership Through 2031
- Positive Sentiment: Analysts continue to frame Broadcom as a major AI infrastructure winner, which is helping keep investor enthusiasm elevated. Broadcom is a ‘core AI winner,’ even as MediaTek encroaches, Morgan Stanley says
- Positive Sentiment: Wall Street price targets imply further upside for AVGO, reinforcing the bullish view on earnings and valuation momentum. Wall Street Analysts See a 32.76% Upside in Broadcom Inc. (AVGO): Can the Stock Really Move This High?
- Neutral Sentiment: Broadcom remains a heavily discussed AI stock, but some commentary also warns that the trade is crowded, which could increase volatility. Bank of America Says Long Semiconductors is the “Most Crowded Trade Ever”
- Negative Sentiment: Insider selling has been a mild drag on sentiment, even though it does not necessarily signal a change in Broadcom’s fundamentals. Broadcom (NASDAQ:AVGO) Insider Mark David Brazeal Sells 25,000 Shares
- Negative Sentiment: Separately, Reuters reported that five cloud industry groups are urging EU regulators to suspend some Broadcom business practices, adding a regulatory overhang. Five cloud business groups urge EU interim measures against Broadcom
Wall Street Analyst Weigh In
A number of equities analysts have commented on the stock. Rosenblatt Securities reaffirmed a “buy” rating and set a $500.00 price objective on shares of Broadcom in a research report on Thursday, June 4th. Bank of America increased their price objective on shares of Broadcom from $450.00 to $530.00 and gave the company a “buy” rating in a research report on Thursday, June 4th. Evercore restated an “outperform” rating and set a $582.00 target price on shares of Broadcom in a research note on Tuesday, May 19th. KeyCorp reaffirmed an “overweight” rating and set a $575.00 target price (up from $500.00) on shares of Broadcom in a report on Thursday, June 4th. Finally, Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and issued a $515.00 price target (up from $430.00) on shares of Broadcom in a research note on Thursday, June 4th. One analyst has rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $493.24.
Broadcom Stock Performance
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 stock’s 50-day moving average price is $403.86 and its 200-day moving average price is $364.80. The company has a market cap of $1.88 trillion, a P/E ratio of 65.71, a PEG ratio of 0.67 and a beta of 1.45.
Broadcom (NASDAQ:AVGO – Get Free Report) last released its quarterly earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, topping 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 business had revenue of $22.19 billion for the quarter, compared to analyst estimates of $22.13 billion. During the same period last year, the firm earned $1.58 earnings per share. Broadcom’s revenue for the quarter was up 47.9% compared to the same quarter last year. Equities analysts anticipate that Broadcom Inc. will post 10.24 EPS for the current year.
Broadcom Announces Dividend
The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Monday, June 22nd were issued a dividend of $0.65 per share. The ex-dividend date of this dividend was Monday, June 22nd. This represents a $2.60 annualized dividend and a dividend yield of 0.7%. Broadcom’s dividend payout ratio (DPR) is currently 43.33%.
Insider Buying and Selling at Broadcom
In related news, insider Mark David Brazeal sold 25,000 shares of the stock in a transaction that occurred on Friday, July 10th. The stock was sold at an average price of $401.33, for a total transaction of $10,033,250.00. Following the sale, the insider owned 194,989 shares of the company’s stock, valued at $78,254,935.37. This represents a 11.36% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Gayla J. Delly sold 1,890 shares of the firm’s stock in a transaction on Wednesday, July 8th. The stock was sold at an average price of $385.38, for a total value of $728,368.20. Following the transaction, the director owned 31,326 shares in the company, valued at approximately $12,072,413.88. This trade represents a 5.69% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 61,644 shares of company stock valued at $24,016,214 in the last three months. Corporate insiders own 1.90% of the company’s stock.
Institutional Trading of Broadcom
A number of institutional investors have recently modified their holdings of AVGO. Brighton Jones LLC boosted its position in shares of Broadcom by 21.8% during the 4th quarter. Brighton Jones LLC now owns 29,683 shares of the semiconductor manufacturer’s stock worth $6,882,000 after acquiring an additional 5,322 shares in the last quarter. Revolve Wealth Partners LLC lifted its stake in Broadcom by 10.4% during the fourth quarter. Revolve Wealth Partners LLC now owns 7,997 shares of the semiconductor manufacturer’s stock worth $1,854,000 after purchasing an additional 756 shares during the last quarter. United Bank lifted its stake in Broadcom by 76.5% during the first quarter. United Bank now owns 2,339 shares of the semiconductor manufacturer’s stock worth $392,000 after purchasing an additional 1,014 shares during the last quarter. Sivia Capital Partners LLC boosted its holdings in shares of Broadcom by 10.1% in the 2nd quarter. Sivia Capital Partners LLC now owns 12,693 shares of the semiconductor manufacturer’s stock valued at $3,499,000 after purchasing an additional 1,160 shares in the last quarter. Finally, Capital & Planning LLC boosted its holdings in shares of Broadcom by 10.5% in the 2nd quarter. Capital & Planning LLC now owns 3,983 shares of the semiconductor manufacturer’s stock valued at $1,098,000 after purchasing an additional 378 shares in 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.
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