Broadcom (NASDAQ:AVGO) Trading 1.9% Higher – Time to Buy?

Broadcom Inc. (NASDAQ:AVGO) traded up 1.9% on Tuesday . The company traded as high as $435.31 and last traded at $422.01. 21,842,941 shares changed hands during trading, a decline of 10% from the average session volume of 24,313,111 shares. The stock had previously closed at $414.14.

Trending Headlines about Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom unveiled new BCM68850 and Wi?Fi 8 home gateway products that combine 50G fiber, an on-chip NPU, and edge-AI capabilities, strengthening its position in next-generation consumer networking and AI-at-the-edge use cases. Article: Broadcom’s BCM68850 Boosts AVGO’s Edge AI Push: More Upside Ahead?
• Positive Sentiment: Broadcom announced a partnership with Samsung Electronics to launch an integrated 5G and Wi?Fi 8 fixed wireless access platform, expanding its broadband footprint and supporting demand for its networking silicon. Article: Broadcom Unveils World’s First Integrated 5G and Wi-Fi 8 FWA Platform in Collaboration with Samsung Electronics
• Positive Sentiment: Broadcom also launched what it says are the industry’s first integrated Wi?Fi 8 SoCs for mesh and multi-gigabit routers, adding another catalyst for its connectivity and home-networking business. Article: Broadcom Delivers Industry’s First Integrated Wi-Fi 8 SoCs to Power Next-Gen Mesh and Multi-Gigabit Routers
• Positive Sentiment: Evercore ISI raised its price target on Broadcom and kept an Outperform rating, reflecting confidence in the company’s AI infrastructure opportunity and supporting the stock’s momentum. Article: Broadcom (AVGO) Could Be Positioned For The Next Big Shift In AI Infrastructure
• Positive Sentiment: Analyst commentary continues to frame Broadcom as a “safe” long-term AI and networking holding, which may be helping sentiment as the stock approaches recent highs. Article: AI Can’t Reach the Real World Without These 3 Stocks
• Neutral Sentiment: The stock is also drawing attention because it is trading near its 52-week high ahead of earnings, which may keep volatility elevated as investors weigh whether the current valuation is fully priced in. Article: Broadcom Nearing 52-Week High: Buy, Sell or Hold?

Analyst Ratings Changes

A number of equities research analysts have weighed in on the company. Wells Fargo & Company reaffirmed an “overweight” rating and set a $545.00 price objective (up from $430.00) on shares of Broadcom in a report on Thursday, May 14th. Truist Financial lifted their price objective on Broadcom from $510.00 to $545.00 and gave the company a “buy” rating in a report on Thursday, March 5th. Morgan Stanley lifted their price objective on Broadcom from $462.00 to $470.00 and gave the company an “overweight” rating in a report on Friday, March 6th. Evercore reaffirmed an “outperform” rating and set a $582.00 price objective on shares of Broadcom in a report on Tuesday, May 19th. Finally, Mizuho reaffirmed an “outperform” rating and set a $480.00 price objective on shares of Broadcom in a report on Thursday, April 16th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and four have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $454.55.

Broadcom Stock Up 1.1%

The firm has a market capitalization of $2.02 trillion, a price-to-earnings ratio of 83.32, a P/E/G ratio of 0.87 and a beta of 1.43. The company has a current ratio of 1.90, a quick ratio of 1.73 and a debt-to-equity ratio of 0.80. The firm has a fifty day moving average price of $380.90 and a 200 day moving average price of $357.94.

Broadcom (NASDAQ:AVGO) last announced its earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 EPS for the quarter, topping the consensus estimate of $2.03 by $0.02. The business had revenue of $19.31 billion for the quarter, compared to the consensus estimate of $19.10 billion. Broadcom had a return on equity of 38.61% and a net margin of 36.57%.Broadcom’s revenue was up 29.5% compared to the same quarter last year. During the same period in the previous year, the business earned $1.60 EPS. Sell-side analysts anticipate that Broadcom Inc. will post 9.91 EPS for the current fiscal year.

Broadcom Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Monday, March 23rd were issued a $0.65 dividend. This represents a $2.60 annualized dividend and a dividend yield of 0.6%. The ex-dividend date of this dividend was Monday, March 23rd. Broadcom’s payout ratio is presently 50.78%.

Insider Transactions at Broadcom

In other Broadcom news, CFO Kirsten M. Spears sold 36,292 shares of the company’s stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $321.60, for a total transaction of $11,671,507.20. Following the transaction, the chief financial officer owned 327,760 shares of the company’s stock, valued at approximately $105,407,616. This represents a 9.97% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider S. Ram Velaga sold 38,841 shares of the company’s stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $321.60, for a total value of $12,491,265.60. Following the transaction, the insider directly owned 96,147 shares in the company, valued at approximately $30,920,875.20. This represents a 28.77% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 324,282 shares of company stock worth $106,425,249 in the last quarter. 1.90% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Vanguard Group Inc. lifted its holdings in Broadcom by 0.8% during the 4th quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer’s stock worth $167,064,997,000 after buying an additional 3,919,715 shares in the last quarter. State Street Corp increased its position in shares of Broadcom by 2.7% in the 4th quarter. State Street Corp now owns 190,084,351 shares of the semiconductor manufacturer’s stock valued at $65,788,194,000 after buying an additional 5,040,801 shares in the last quarter. Geode Capital Management LLC increased its position in shares of Broadcom by 1.4% in the 4th quarter. Geode Capital Management LLC now owns 111,277,280 shares of the semiconductor manufacturer’s stock valued at $38,396,634,000 after buying an additional 1,548,699 shares in the last quarter. Price T Rowe Associates Inc. MD increased its position in shares of Broadcom by 3.0% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 85,546,083 shares of the semiconductor manufacturer’s stock valued at $29,607,500,000 after buying an additional 2,491,644 shares in the last quarter. Finally, Norges Bank bought a new stake in shares of Broadcom in the 4th quarter valued at $24,252,196,000. Institutional investors and hedge funds own 76.43% of the company’s stock.

About Broadcom

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.