Broadcom Inc. (NASDAQ:AVGO – Get Free Report) hit a new 52-week low on Friday. The stock traded as low as $289.77 and last traded at $292.8350, with a volume of 17,966,538 shares changing hands. The stock had previously closed at $291.53.
Key Broadcom News
Here are the key news stories impacting Broadcom this week:
- Positive Sentiment: Broadcom’s AI semiconductor revenue is surging, and management sees significant growth potential over the next several years. One analysis argues that the market may not yet reflect that opportunity; another estimates the shares could be undervalued. Prediction: November Will Be a Huge Month for Broadcom Broadcom Stock Could Be 37% Undervalued
- Neutral Sentiment: Some coverage frames the recent pullback as a potential turning point, with a widening gap between AI business growth and the share-price trend. Whether fundamentals prompt a recovery remains uncertain. Broadcom Stock Could Be Approaching a Major Turning Point
- Negative Sentiment: Near-term risks include the broad AI-chip selloff and worries that higher interest rates could curb AI spending. Potential limits on new data-center permits in some states add uncertainty about future infrastructure buildouts. Broadcom’s AI Revenue Is Exploding. Here’s What Investors Should Watch Next. Broadcom Drops Amid Broad Chip Selloff
- Negative Sentiment: Investor positioning has also weighed on sentiment: ARK sold a large Broadcom holding during the selloff while buying Nvidia. Broadcom is still down sharply over the past month, despite the recent lift. ARK Buys Nvidia and Sells Broadcom Broadcom Is Still Down 22% in the Past Month
Analyst Upgrades and Downgrades
Several research analysts have recently issued reports on the company. Raymond James Financial restated an “outperform” rating and issued a $475.00 price target (up from $450.00) on shares of Broadcom in a research report on Thursday, September 3rd. Fox Advisors upgraded Broadcom to an “outperform” rating in a report on Thursday, September 3rd. Lake Street Capital upgraded Broadcom to a “buy” rating in a report on Thursday, September 3rd. Evercore set a $578.00 target price on Broadcom and gave the company an “outperform” rating in a research note on Thursday, September 3rd. Finally, BMO Capital Markets raised their target price on Broadcom from $455.00 to $575.00 and gave the stock an “outperform” rating in a report on Thursday, September 3rd. One equities research analyst has rated the stock with a Strong Buy rating, thirty-nine have issued a Buy rating and five have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $530.52.
Broadcom Price Performance
The company’s fifty day moving average price is $347.89 and its two-hundred day moving average price is $366.17. The company has a quick ratio of 2.29, a current ratio of 2.50 and a debt-to-equity ratio of 0.57. The company has a market cap of $1.40 trillion, a price-to-earnings ratio of 37.51 and a beta of 1.49.
Broadcom (NASDAQ:AVGO – Get Free Report) last posted its quarterly earnings data on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 EPS for the quarter, beating the consensus estimate of $3.22 by $0.10. Broadcom had a net margin of 42.94% and a return on equity of 48.33%. The business had revenue of $29.59 billion for the quarter, compared to analysts’ expectations of $29.24 billion. During the same period in the previous year, the firm posted $1.69 EPS. The firm’s revenue was up 85.5% compared to the same quarter last year. On average, equities research analysts forecast that Broadcom Inc. will post 10.37 EPS for the current fiscal year.
Broadcom Dividend Announcement
The company also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Monday, September 21st were given a dividend of $0.65 per share. This represents a $2.60 annualized dividend and a dividend yield of 0.9%. The ex-dividend date of this dividend was Monday, September 21st. Broadcom’s dividend payout ratio is currently 33.21%.
Institutional Investors Weigh In On Broadcom
A number of hedge funds and other institutional investors have recently bought and sold shares of the company. State Street Corp grew its position in Broadcom by 8.7% in the second quarter. State Street Corp now owns 208,031,610 shares of the semiconductor manufacturer’s stock valued at $75,367,711,000 after purchasing an additional 16,651,378 shares in the last quarter. Bank of America Corp DE increased its position in shares of Broadcom by 4.6% in the second quarter. Bank of America Corp DE now owns 61,423,013 shares of the semiconductor manufacturer’s stock valued at $23,202,543,000 after acquiring an additional 2,685,916 shares during the last quarter. Wellington Management Group LLP increased its position in shares of Broadcom by 3.8% in the second quarter. Wellington Management Group LLP now owns 51,580,703 shares of the semiconductor manufacturer’s stock valued at $19,484,611,000 after acquiring an additional 1,892,721 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in Broadcom by 2.9% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 40,180,530 shares of the semiconductor manufacturer’s stock worth $15,178,195,000 after acquiring an additional 1,140,598 shares in the last quarter. Finally, Legal & General Group Plc bought a new stake in Broadcom during the second quarter worth about $11,998,148,000. Institutional investors and hedge funds own 76.43% of the company’s stock.
About Broadcom
Broadcom Inc is a global technology company that designs and supplies semiconductor products and infrastructure software. Its semiconductor portfolio includes chips and components used in networking, broadband communications, wireless connectivity, data storage, and industrial applications. The company serves businesses across a range of industries, including communications, enterprise technology, and consumer electronics.
Broadcom also provides infrastructure software, including products for virtualization, cloud computing, cybersecurity, and enterprise operations.
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