Broadcom (NASDAQ:AVGO) Stock Moved Down to “Neutral” by Rothschild & Co Redburn

Rothschild & Co Redburn cut shares of Broadcom (NASDAQ:AVGO) from a buy rating to a neutral rating in a research report report published on Friday morning, Marketbeat Ratings reports. Rothschild & Co Redburn currently has $398.00 target price on the semiconductor manufacturer’s stock, down from their previous target price of $595.00.

A number of other equities research analysts also recently weighed in on AVGO. Sanford C. Bernstein reaffirmed a “buy” rating on shares of Broadcom in a research note on Monday, September 21st. Citic Securities upgraded shares of Broadcom to a “buy” rating and lifted their target price for the company from $450.00 to $525.00 in a research report on Tuesday, September 8th. JPMorgan Chase & Co. reissued a “buy” rating on shares of Broadcom in a research note on Thursday, September 3rd. Lake Street Capital raised shares of Broadcom to a “buy” rating in a report on Thursday, September 3rd. Finally, Truist Financial lowered their price objective on shares of Broadcom from $550.00 to $520.00 and set a “buy” rating on the stock in a research report on Thursday, September 3rd. One analyst has rated the stock with a Strong Buy rating, thirty-eight have given a Buy rating and six have given a Hold rating to the company’s stock. Based on data from MarketBeat, Broadcom currently has an average rating of “Moderate Buy” and an average price target of $525.19.

Broadcom Stock Down 4.8%

Shares of NASDAQ:AVGO opened at $347.01 on Friday. The firm has a fifty day moving average price of $345.39 and a two-hundred day moving average price of $366.55. The company has a market cap of $1.66 trillion, a price-to-earnings ratio of 44.32 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. Broadcom has a one year low of $289.77 and a one year high of $495.00.

Broadcom (NASDAQ:AVGO) last released its quarterly earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share for the quarter, topping 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 firm had revenue of $29.59 billion for the quarter, compared to analysts’ expectations of $29.24 billion. During the same quarter in the prior year, the firm posted $1.69 earnings per share. The business’s quarterly revenue was up 85.5% on a year-over-year basis. Analysts anticipate that Broadcom will post 10.20 EPS for the current fiscal year.

Broadcom Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Monday, September 21st were issued a $0.65 dividend. The ex-dividend date was Monday, September 21st. This represents a $2.60 annualized dividend and a dividend yield of 0.7%. Broadcom’s dividend payout ratio (DPR) is currently 33.21%.

Institutional Investors Weigh In On Broadcom

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. NerdWallet Wealth Partners LLC lifted its holdings in shares of Broadcom by 2.6% during the second quarter. NerdWallet Wealth Partners LLC now owns 1,057 shares of the semiconductor manufacturer’s stock valued at $399,000 after purchasing an additional 27 shares in the last quarter. Veery Capital LLC lifted its position in shares of Broadcom by 1.4% during the second quarter. Veery Capital LLC now owns 1,900 shares of the semiconductor manufacturer’s stock worth $718,000 after purchasing an additional 27 shares during the last quarter. Ridgeline Wealth Planning LLC boosted its position in Broadcom by 2.1% during the 2nd quarter. Ridgeline Wealth Planning LLC now owns 1,302 shares of the semiconductor manufacturer’s stock valued at $492,000 after acquiring an additional 27 shares in the last quarter. Meridian Management Co. boosted its position in shares of Broadcom by 0.3% in the 1st quarter. Meridian Management Co. now owns 9,425 shares of the semiconductor manufacturer’s stock worth $2,917,000 after purchasing an additional 28 shares in the last quarter. Finally, Arkansas Financial Group Inc. raised its stake in Broadcom by 3.5% in the 2nd quarter. Arkansas Financial Group Inc. now owns 866 shares of the semiconductor manufacturer’s stock worth $327,000 after acquiring an additional 29 shares during the last quarter. 76.43% of the stock is currently owned by institutional investors.

Key Broadcom News

Here’s some of the latest news about AVGO:

• Positive Sentiment: Despite Rothschild & Co Redburn’s downgrade, the articles note that Wall Street’s average price target remains around $533, above the firm’s new $398 target. This suggests some analysts still see substantial upside. Is Rothschild & Co Redburn Wrong to Give Up on Broadcom?
• Neutral Sentiment: Broadcom had recently rallied as investors considered whether NVIDIA’s leadership turmoil could redirect demand to rival chipmakers. NVIDIA’s rebound on Friday, however, prompted some investors to reassess that rotation. AMD, Broadcom stocks fall as Nvidia rebounds
• Negative Sentiment: Rothschild & Co Redburn cut AVGO to Neutral from Buy and lowered its price target by 33%, from $595 to $398. It flagged risk from Broadcom’s growing exposure to AI financing arrangements, including reliance on AI companies such as Anthropic and OpenAI that are not yet self-funding. Broadcom stock falls as firm flags AI financing risks

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.