Broadcom (NASDAQ:AVGO) Stock Price Up 4.8% – What’s Next?

Broadcom Inc. (NASDAQ:AVGO)’s share price shot up 4.8% during mid-day trading on Wednesday . The stock traded as high as $395.09 and last traded at $388.69. Approximately 30,720,337 shares were traded during mid-day trading, an increase of 16% from the average session volume of 26,490,170 shares. The stock had previously closed at $370.78.

Key Headlines Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Apple’s more than $30 billion multiyear deal with Broadcom extends the partnership through 2031 and should provide a large, stable source of revenue. Reuters article
• Positive Sentiment: The agreement boosts Broadcom’s profile in AI-related custom silicon and U.S.-based manufacturing, which investors may see as a long-term strategic advantage. TechCrunch article
• Positive Sentiment: Several articles framed Broadcom as a beneficiary of renewed investor interest in AI semiconductors after recent sector weakness, implying the stock may have room to recover if chip demand stays strong. Benzinga article
• Neutral Sentiment: Broadcom saw unusually large call-option trading, which signals rising speculation but does not by itself confirm a fundamental change in the business.
• Neutral Sentiment: One analyst downgrade and mixed commentary about recent pullbacks could temper enthusiasm, but the Apple contract news appears to be the main driver today. Yahoo Finance article

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on the company. The Goldman Sachs Group reiterated a “buy” rating and set a $525.00 target price on shares of Broadcom in a research report on Thursday, June 4th. UBS Group set a $485.00 price target on shares of Broadcom and gave the company a “buy” rating in a research report on Thursday, June 4th. JPMorgan Chase & Co. raised their price target on Broadcom from $500.00 to $580.00 and gave the stock an “overweight” rating in a report on Thursday, June 4th. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a $515.00 target price (up from $430.00) on shares of Broadcom in a report on Thursday, June 4th. Finally, Cantor Fitzgerald reaffirmed an “overweight” rating and set a $525.00 price target 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-eight have given a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat.com, Broadcom currently has a consensus rating of “Moderate Buy” and a consensus target price of $493.24.

Broadcom Stock Up 4.8%

The company has a market capitalization of $1.85 trillion, a price-to-earnings ratio of 64.78, a price-to-earnings-growth ratio of 0.66 and a beta of 1.45. 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 firm’s 50-day simple moving average is $405.96 and its two-hundred day simple moving average is $363.03.

Broadcom (NASDAQ:AVGO) last issued its quarterly earnings data on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share (EPS) for the quarter, topping the consensus estimate 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 during the quarter, compared to analysts’ expectations of $22.13 billion. During the same period in the previous year, the firm posted $1.58 earnings per share. Broadcom’s revenue was up 47.9% on a year-over-year basis. Sell-side analysts predict that Broadcom Inc. will post 10.24 EPS for the current fiscal year.

Broadcom Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Monday, June 22nd were paid a dividend of $0.65 per share. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend was Monday, June 22nd. Broadcom’s dividend payout ratio (DPR) is 43.33%.

Insider Activity

In related news, insider Mark David Brazeal sold 4,825 shares of the company’s stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $394.91, for a total value of $1,905,440.75. Following the sale, the insider owned 269,989 shares of the company’s stock, valued at approximately $106,621,355.99. This represents a 1.76% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider S. Ram Velaga sold 17,260 shares of the stock in a transaction on Thursday, April 9th. The shares were sold at an average price of $352.12, for a total value of $6,077,591.20. Following the sale, the insider owned 65,932 shares in the company, valued at approximately $23,215,975.84. This trade represents a 20.75% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 36,014 shares of company stock worth $13,174,907. 1.90% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Norges Bank acquired a new stake in Broadcom during the fourth quarter worth approximately $24,252,196,000. Cardano Risk Management B.V. raised its holdings in Broadcom by 895.2% in the 4th 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 raised its holdings in Broadcom by 118.1% in the 1st 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 lifted its stake in shares of Broadcom by 2.7% during the 4th quarter. State Street Corp now owns 190,084,351 shares of the semiconductor manufacturer’s stock worth $65,788,194,000 after purchasing an additional 5,040,801 shares during the period. Finally, Vanguard Group Inc. boosted its holdings in shares of Broadcom by 0.8% during the fourth quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer’s stock worth $167,064,997,000 after purchasing an additional 3,919,715 shares during the last quarter. Institutional investors and hedge funds own 76.43% of the company’s stock.

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.