Broadcom (NASDAQ:AVGO) Shares Up 5.5% – Here’s What Happened

Broadcom Inc. (NASDAQ:AVGO) rose 5.5% during trading on Thursday. The stock traded as high as $369.82 and last traded at $364.36. Approximately 43,408,142 shares traded hands during trading, an increase of 72% from the average session volume of 25,168,486 shares. The stock had previously closed at $345.22.

Top Broadcom Stories

Investors following AVGO have been watching these stories:

• Positive Sentiment: News of Nvidia CEO Jensen Huang’s reported departure or possible ouster sent investors toward competitors, including Broadcom. Broadcom’s role designing custom chips for hyperscalers gives it a potential opening if customers seek alternatives to Nvidia. Why Broadcom Stock Rallied Thursday Morning
• Positive Sentiment: Broader technology shares rebounded as Nvidia selling eased and money flowed into rival chipmakers such as Broadcom and AMD, adding support to AVGO. S&P 500 and Nasdaq: Tech Stocks Rebound
• Negative Sentiment: Potential export controls, hardware-tracking requirements, and restrictions on overseas cloud computing could complicate deployments across the semiconductor industry and weigh on growth or margins. Midterm Fallout, NVIDIA Turmoil, Anthropic’s IPO: Is Broadcom a Steal?

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on the company. Arete Research raised their price target on Broadcom from $488.00 to $530.00 and gave the company a “buy” rating in a report on Tuesday, July 21st. HSBC lowered their price target on shares of Broadcom from $600.00 to $560.00 and set a “buy” rating on the stock in a research report on Thursday, September 3rd. Wedbush initiated coverage on Broadcom in a report on Tuesday, October 27th. They issued an “outperform” rating for the company. Sanford C. Bernstein reiterated a “buy” rating on shares of Broadcom in a research note on Monday, September 21st. Finally, Piper Sandler started coverage on Broadcom in a report on Wednesday, September 9th. They set an “overweight” rating and a $460.00 price target for the company. One research analyst has rated the stock with a Strong Buy rating, thirty-nine have given a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $530.52.

Broadcom Stock Performance

The company has a market capitalization of $1.74 trillion, a P/E ratio of 46.53 and a beta of 1.49. The company has a debt-to-equity ratio of 0.57, a current ratio of 2.50 and a quick ratio of 2.29. The company has a fifty day moving average price of $345.65 and a two-hundred day moving average price of $366.28.

Broadcom (NASDAQ:AVGO) last released its quarterly earnings data on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.22 by $0.10. Broadcom had a return on equity of 48.33% and a net margin of 42.94%. The company had revenue of $29.59 billion during the quarter, compared to the consensus estimate of $29.24 billion. During the same quarter in the prior year, the firm posted $1.69 earnings per share. The firm’s revenue was up 85.5% compared to the same quarter last year. Equities analysts forecast that Broadcom Inc. will post 10.37 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Monday, September 21st were paid a $0.65 dividend. The ex-dividend date of this dividend was Monday, September 21st. This represents a $2.60 annualized dividend and a dividend yield of 0.7%. Broadcom’s payout ratio is currently 33.21%.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. Core Capital Management & Research inc. bought a new position in Broadcom during the 2nd quarter worth approximately $31,000. Harborfront Financial Group LLC bought a new stake in shares of Broadcom in the 2nd quarter valued at $38,000. DecisionPoint Financial LLC increased its position in shares of Broadcom by 101.9% during the third quarter. DecisionPoint Financial LLC now owns 105 shares of the semiconductor manufacturer’s stock worth $36,000 after buying an additional 53 shares during the period. Align Financial LLC increased its position in shares of Broadcom by 67.2% during the third quarter. Align Financial LLC now owns 112 shares of the semiconductor manufacturer’s stock worth $38,000 after buying an additional 45 shares during the period. Finally, Curry Webb Wealth Management LLC bought a new position in Broadcom during the third quarter worth $41,000. 76.43% of the stock is owned by institutional investors.

Broadcom Company Profile

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.