Broadcom (NASDAQ:AVGO) Trading Up 3.2% Following Analyst Upgrade

Broadcom Inc. (NASDAQ:AVGO) shares rose 3.2% during trading on Friday after Truist Financial raised their price target on the stock from $500.00 to $510.00. Truist Financial currently has a buy rating on the stock. Broadcom traded as high as $343.45 and last traded at $340.36. Approximately 157,670,441 shares traded hands during trading, an increase of 487% from the average daily volume of 26,866,146 shares. The stock had previously closed at $329.88.

Other equities research analysts also recently issued research reports about the company. Wall Street Zen raised Broadcom from a “hold” rating to a “buy” rating in a report on Saturday, December 13th. Oppenheimer increased their price objective on Broadcom from $435.00 to $450.00 and gave the company an “outperform” rating in a report on Friday, December 12th. Argus lifted their price objective on shares of Broadcom from $285.00 to $375.00 and gave the company a “buy” rating in a research note on Monday, September 8th. TD Cowen raised their target price on shares of Broadcom from $405.00 to $450.00 and gave the stock a “buy” rating in a report on Friday, December 12th. Finally, Susquehanna reaffirmed a “positive” rating and set a $450.00 price target (up from $400.00) on shares of Broadcom in a research report on Thursday, December 4th. Three investment analysts have rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat, Broadcom presently has an average rating of “Buy” and a consensus price target of $436.33.

Insider Buying and Selling

In other Broadcom news, Director Henry Samueli sold 368,797 shares of the stock in a transaction that occurred on Wednesday, September 24th. The stock was sold at an average price of $337.91, for a total transaction of $124,620,194.27. Following the transaction, the director owned 37,722,534 shares in the company, valued at approximately $12,746,821,463.94. This represents a 0.97% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Kirsten M. Spears sold 3,714 shares of the business’s stock in a transaction that occurred on Wednesday, December 17th. The shares were sold at an average price of $327.79, for a total value of $1,217,412.06. Following the completion of the sale, the chief financial officer owned 307,237 shares of the company’s stock, valued at $100,709,216.23. This trade represents a 1.19% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 825,296 shares of company stock worth $299,151,975 in the last ninety days. 2.00% of the stock is owned by corporate insiders.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Major analyst upgrades and higher targets — Truist raised its price target to $510 and multiple banks lifted targets after the quarter, giving the stock material upside vs. current levels. Truist raises AVGO target to $510
• Positive Sentiment: High-profile bullish commentary — Jim Cramer and other Wall Street commentators have signaled they’re not worried and are constructive on Broadcom’s AI positioning, supporting near-term buying interest. Cramer: not that worried about Broadcom
• Positive Sentiment: Quarterly results and AI revenue guidance boosted confidence — Broadcom reported stronger-than-expected revenue and flagged substantial AI-related demand (analysts/publications highlight multi-billion AI revenue potential and backlog). Broadcom posts blockbuster results, AI revenue forecast
• Positive Sentiment: Dividend increase — Broadcom boosted its quarterly dividend ~10% (to $0.65), which can attract income-oriented and long-term shareholders. Dividend up 10%
• Positive Sentiment: Unusual call buying — Traders purchased roughly 323,615 call options on Friday (about +11% vs. average), indicating aggressive bullish positioning into or after the news. (options volume report)
• Neutral Sentiment: Valuation and DCF work — Independent DCF/intrinsic-value models are being published this week; they provide longer-term context but are unlikely to drive intraday moves. DCF on Broadcom
• Negative Sentiment: Insider selling — Multiple insiders (including Charlie Kawwas, Mark Brazeal and the CFO) disclosed sales of stock in mid-December, which can be interpreted as a modest negative signal to some investors. Insider selling filings
• Negative Sentiment: Large recent sell-off and margin concerns — AVGO plunged roughly 20% from pre-earnings levels amid broader AI/tech volatility and some reported margin worries; that recent volatility is the primary reason for elevated risk despite bullish analyst targets. MarketBeat: 20% sell-off vs analyst optimism
• Negative Sentiment: Analyst note on margin/slump risk — Some coverage highlights margin sensitivity even with booming AI demand; that keeps downside risk if execution or pricing pressures emerge. Zacks: margin concerns

Institutional Trading of Broadcom

Large investors have recently bought and sold shares of the business. Brighton Jones LLC raised its position in Broadcom by 21.8% in the fourth quarter. Brighton Jones LLC now owns 29,683 shares of the semiconductor manufacturer’s stock valued at $6,882,000 after purchasing an additional 5,322 shares during the period. Revolve Wealth Partners LLC raised its holdings in shares of Broadcom by 10.4% in the 4th quarter. Revolve Wealth Partners LLC now owns 7,997 shares of the semiconductor manufacturer’s stock valued at $1,854,000 after buying an additional 756 shares during the period. United Bank lifted its stake in Broadcom by 76.5% during the 1st quarter. United Bank now owns 2,339 shares of the semiconductor manufacturer’s stock worth $392,000 after acquiring an additional 1,014 shares in the last quarter. Price T Rowe Associates Inc. MD lifted its stake in Broadcom by 37.8% during the 1st quarter. Price T Rowe Associates Inc. MD now owns 65,509,579 shares of the semiconductor manufacturer’s stock worth $10,968,270,000 after acquiring an additional 17,985,046 shares in the last quarter. Finally, Martingale Asset Management L P boosted its holdings in Broadcom by 1.3% during the 1st quarter. Martingale Asset Management L P now owns 3,876 shares of the semiconductor manufacturer’s stock valued at $649,000 after acquiring an additional 48 shares during the period. Hedge funds and other institutional investors own 76.43% of the company’s stock.

Broadcom Stock Performance

The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.58 and a current ratio of 1.71. The company has a market capitalization of $1.61 trillion, a price-to-earnings ratio of 71.50, a P/E/G ratio of 1.09 and a beta of 1.19. The firm has a 50-day simple moving average of $362.66 and a two-hundred day simple moving average of $320.02.

Broadcom (NASDAQ:AVGO) last posted its quarterly earnings data on Thursday, December 11th. The semiconductor manufacturer reported $1.95 EPS for the quarter, beating the consensus estimate of $1.87 by $0.08. The business had revenue of $18.02 billion during the quarter, compared to analyst estimates of $17.46 billion. Broadcom had a net margin of 36.20% and a return on equity of 37.45%. The business’s revenue for the quarter was up 28.2% compared to the same quarter last year. During the same quarter last year, the firm posted $1.42 earnings per share. On average, sell-side analysts anticipate that Broadcom Inc. will post 5.38 EPS for the current fiscal year.

Broadcom Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, December 31st. Shareholders of record on Monday, December 22nd will be paid a $0.65 dividend. This is a boost from Broadcom’s previous quarterly dividend of $0.59. This represents a $2.60 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date is Monday, December 22nd. Broadcom’s payout ratio is 54.62%.

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.