Broadcom (NASDAQ:AVGO) Trading 4.7% Higher – Still a Buy?

Broadcom Inc. (NASDAQ:AVGO)’s stock price shot up 4.7% during mid-day trading on Friday . The stock traded as high as $448.90 and last traded at $446.77. 40,576,583 shares were traded during trading, an increase of 67% from the average session volume of 24,342,867 shares. The stock had previously closed at $426.58.

Broadcom News Summary

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Investor attention remains strong around Broadcom, with Zacks highlighting AVGO as a trending stock and market commentary continuing to view it as a key AI infrastructure winner. This kind of sustained interest can keep demand for the shares elevated. Article Title
• Positive Sentiment: Jim Cramer praised Broadcom’s role in custom chips for major AI customers like Google and Meta, reinforcing the market’s view that AVGO is a major beneficiary of AI spending. Article Title
• Positive Sentiment: Broadcom’s new BCM68850 product is being positioned as an edge-AI and Wi?Fi 8 upgrade, suggesting another avenue for growth beyond its core AI accelerator business. That could support long-term revenue expectations. Article Title
• Positive Sentiment: Analyst and model-driven commentary remains favorable, including an Evercore ISI price-target increase and articles calling Broadcom a candidate for the next major shift in AI infrastructure. Those views can help underpin valuation. Article Title
• Neutral Sentiment: Broadcom announced a partnership with Samsung to introduce a broadband-focused platform for fixed wireless access, which adds strategic credibility but is not yet a clearly material financial catalyst. Article Title
• Neutral Sentiment: Several articles note Broadcom is trading near its 52-week high and is widely discussed as a “safe” long-term holding, which reflects momentum and confidence but also suggests the stock may already price in strong expectations. Article Title
• Negative Sentiment: Broader semiconductor commentary is turning more cautious, with some investors questioning whether the chip supercycle can continue at its current pace. That could create volatility for AVGO even if its fundamentals remain strong. Article Title
• Negative Sentiment: Discovery Capital Management reportedly reduced its Broadcom stake by selling 83,200 shares, a small but notable sign of profit-taking that can weigh on sentiment at the margin. Article Title

Wall Street Analyst Weigh In

Several research firms have recently issued reports on AVGO. Royal Bank Of Canada cut their price target on Broadcom from $370.00 to $340.00 and set a “sector perform” rating for the company in a research note on Monday, March 2nd. Evercore reaffirmed an “outperform” rating and set a $582.00 price target on shares of Broadcom in a research note on Tuesday, May 19th. Morgan Stanley lifted their price target on Broadcom from $462.00 to $470.00 and gave the stock an “overweight” rating in a research note on Friday, March 6th. Mizuho reaffirmed an “outperform” rating and set a $480.00 price target on shares of Broadcom in a research note on Thursday, April 16th. Finally, TD Cowen reaffirmed a “buy” rating and set a $500.00 price target (up from $405.00) on shares of Broadcom in a research note on Friday, May 15th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and four have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $454.55.

Broadcom Stock Up 4.7%

The firm’s 50 day moving average is $380.90 and its two-hundred day moving average is $357.94. The stock has a market cap of $2.12 trillion, a price-to-earnings ratio of 87.26, 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.

Broadcom (NASDAQ:AVGO) last announced its earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share for the quarter, beating the consensus estimate of $2.03 by $0.02. Broadcom had a net margin of 36.57% and a return on equity of 38.61%. The firm had revenue of $19.31 billion during the quarter, compared to the consensus estimate of $19.10 billion. During the same quarter in the previous year, the company posted $1.60 EPS. The firm’s revenue for the quarter was up 29.5% on a year-over-year basis. On average, sell-side analysts predict that Broadcom Inc. will post 9.91 EPS for the current year.

Broadcom Dividend Announcement

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

Insider Activity at Broadcom

In other news, insider Mark David Brazeal sold 50,488 shares of the company’s stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $321.60, for a total transaction of $16,236,940.80. Following the completion of the transaction, the insider owned 278,141 shares of the company’s stock, valued at $89,450,145.60. This represents a 15.36% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Kirsten M. Spears sold 36,292 shares of the company’s stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $321.60, for a total transaction of $11,671,507.20. Following the transaction, the chief financial officer directly owned 327,760 shares of the company’s stock, valued at approximately $105,407,616. This represents a 9.97% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 324,282 shares of company stock worth $106,425,249. 1.90% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. ROSS JOHNSON & Associates LLC increased its stake in shares of Broadcom by 1,320.0% during the 4th quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer’s stock valued at $25,000 after acquiring an additional 66 shares during the last quarter. Networth Advisors LLC grew its holdings in shares of Broadcom by 546.2% during the 1st quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer’s stock worth $26,000 after purchasing an additional 71 shares during the period. SWAN Capital LLC grew its holdings in shares of Broadcom by 261.9% during the 4th quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer’s stock worth $26,000 after purchasing an additional 55 shares during the period. Miller Global Investments LLC purchased a new stake in shares of Broadcom during the 4th quarter worth about $31,000. Finally, Nvest Wealth Strategies Inc. purchased a new stake in shares of Broadcom during the 4th quarter worth about $33,000. 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.