Broadcom (NASDAQ:AVGO) Shares Up 3.2% – Here’s What Happened

Broadcom Inc. (NASDAQ:AVGO)’s share price rose 3.2% during trading on Thursday . The company traded as high as $407.52 and last traded at $401.11. 27,485,168 shares traded hands during mid-day trading, an increase of 4% from the average session volume of 26,464,199 shares. The stock had previously closed at $388.69.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Apple’s multiyear $30 billion-plus commitment to Broadcom signals a large, stable revenue stream and deeper product tie-in through 2031, which investors see as a major fundamental catalyst. Reuters article
• Positive Sentiment: Analysts remain bullish on Broadcom’s AI chip momentum, with Jefferies reiterating a Buy rating and a $550 price target on expectations for stronger AI demand. Yahoo Finance article
• Positive Sentiment: Market commentary says the broader AI trade is rebounding, helping chip stocks like Broadcom recover as investors rotate back into semiconductor and AI infrastructure names. Barron’s article
• Neutral Sentiment: Broadcom has been described as being in a “local bear market” after recent volatility, but the Apple deal and improving AI outlook may help it test prior highs again. Invezz article
• Neutral Sentiment: Options activity also rose sharply, suggesting traders are positioning for a bigger move as sentiment improves around the stock. Yahoo Finance video

Analyst Ratings Changes

A number of analysts have weighed in on AVGO shares. The Goldman Sachs Group reissued a “buy” rating and set a $525.00 target price on shares of Broadcom in a report on Thursday, June 4th. Dbs Bank raised shares of Broadcom to a “moderate buy” rating in a report on Thursday, June 18th. Evercore reaffirmed an “outperform” rating and set a $582.00 price objective on shares of Broadcom in a research report on Tuesday, May 19th. Truist Financial increased their price objective on shares of Broadcom from $545.00 to $550.00 and gave the stock a “buy” rating in a research note on Thursday, June 4th. Finally, Zacks Research cut shares of Broadcom from a “strong-buy” rating to a “hold” rating in a report on Thursday, May 21st. One analyst has rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $493.24.

Broadcom Price Performance

The company has a market capitalization of $1.91 trillion, a P/E ratio of 66.85, a PEG ratio of 0.65 and a beta of 1.45. The company has a quick ratio of 2.01, a current ratio of 2.24 and a debt-to-equity ratio of 0.71. The business has a 50 day simple moving average of $405.37 and a 200-day simple moving average of $363.44.

Broadcom (NASDAQ:AVGO) last released its quarterly earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, topping the consensus estimate of $2.40 by $0.04. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The business had revenue of $22.19 billion during the quarter, compared to analyst estimates of $22.13 billion. During the same quarter in the prior year, the firm earned $1.58 earnings per share. The company’s quarterly revenue was up 47.9% on a year-over-year basis. Analysts predict that Broadcom Inc. will post 10.24 EPS for the current fiscal year.

Broadcom Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Monday, June 22nd were given a $0.65 dividend. The ex-dividend date was Monday, June 22nd. This represents a $2.60 annualized dividend and a yield of 0.6%. Broadcom’s dividend payout ratio is 43.33%.

Insider Activity

In other Broadcom news, insider S. Ram Velaga sold 8,000 shares of the firm’s stock in a transaction that occurred on Friday, April 10th. The shares were sold at an average price of $370.52, for a total value of $2,964,160.00. Following the sale, the insider owned 57,932 shares in the company, valued at approximately $21,464,964.64. This trade represents a 12.13% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Mark David Brazeal sold 4,825 shares of Broadcom stock in a transaction that occurred on Wednesday, June 17th. The shares were sold at an average price of $394.91, for a total value of $1,905,440.75. Following the sale, the insider directly owned 269,989 shares in the company, valued at approximately $106,621,355.99. This trade represents a 1.76% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 17,754 shares of company stock worth $6,739,006 in the last quarter. Company insiders own 1.90% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in AVGO. Vanguard Group Inc. increased its stake in Broadcom by 0.8% during the 4th quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer’s stock valued at $167,064,997,000 after buying an additional 3,919,715 shares during the period. State Street Corp raised its position 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 buying an additional 5,040,801 shares in the last quarter. Geode Capital Management LLC lifted its stake 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 worth $38,396,634,000 after acquiring an additional 1,548,699 shares during the period. Price T Rowe Associates Inc. MD boosted its holdings in shares of Broadcom by 3.0% in the fourth 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 acquiring an additional 2,491,644 shares in the last quarter. Finally, Norges Bank bought a new position in shares of Broadcom in the fourth quarter valued at approximately $24,252,196,000. 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.