Broadcom (NASDAQ:AVGO) Earns Sector Perform Rating from Royal Bank Of Canada

Broadcom (NASDAQ:AVGO)‘s stock had its “sector perform” rating reaffirmed by equities research analysts at Royal Bank Of Canada in a report released on Thursday, Benzinga reports. They currently have a $400.00 price target on the semiconductor manufacturer’s stock. Royal Bank Of Canada’s price target points to a potential upside of 16.37% from the company’s current price.

A number of other analysts have also recently commented on the company. The Goldman Sachs Group reiterated a “buy” rating on shares of Broadcom in a research report on Monday, August 3rd. Evercore set a $578.00 price target on Broadcom in a research note on Thursday. DA Davidson upped their price target on shares of Broadcom from $375.00 to $400.00 and gave the company a “neutral” rating in a research report on Thursday, June 4th. Weiss Ratings lowered shares of Broadcom from a “buy (b)” rating to a “buy (b-)” rating in a research report on Thursday, July 30th. Finally, Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and issued a $515.00 price objective (up from $430.00) on shares of Broadcom in a research note on Thursday, June 4th. Twenty-nine analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $501.77.

Broadcom Stock Performance

NASDAQ:AVGO traded down $23.52 during trading hours on Thursday, reaching $343.72. The company had a trading volume of 14,238,842 shares, compared to its average volume of 24,840,266. The company has a current ratio of 2.24, a quick ratio of 2.01 and a debt-to-equity ratio of 0.71. Broadcom has a 52 week low of $289.96 and a 52 week high of $495.00. The firm has a market cap of $1.64 trillion, a price-to-earnings ratio of 57.21, a PEG ratio of 0.71 and a beta of 1.44. The firm’s 50 day moving average price is $384.15 and its 200-day moving average price is $377.14.

Broadcom (NASDAQ:AVGO) last announced its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share for the quarter, beating analysts’ consensus estimates of $3.22 by $0.10. The business had revenue of $29.59 billion during the quarter, compared to analyst estimates of $29.24 billion. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The company’s quarterly revenue was up 85.5% compared to the same quarter last year. During the same period in the previous year, the business earned $1.69 EPS. On average, analysts forecast that Broadcom will post 10.24 EPS for the current year.

Insider Buying and Selling

In other news, insider Mark David Brazeal sold 25,000 shares of Broadcom stock in a transaction dated Friday, July 10th. The stock was sold at an average price of $401.33, for a total transaction of $10,033,250.00. Following the transaction, the insider directly owned 194,989 shares of the company’s stock, valued at $78,254,935.37. The trade was a 11.36% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Justine Page sold 1,602 shares of the business’s stock in a transaction that occurred on Monday, June 29th. The shares were sold at an average price of $373.86, for a total value of $598,923.72. Following the transaction, the director owned 17,426 shares of the company’s stock, valued at approximately $6,514,884.36. This trade represents a 8.42% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 61,644 shares of company stock worth $24,016,214. Company insiders own 1.90% of the company’s stock.

Institutional Trading of Broadcom

Hedge funds and other institutional investors have recently modified their holdings of the company. Fullerton Advisors LLC boosted its holdings in Broadcom by 1.3% in the 1st quarter. Fullerton Advisors LLC now owns 1,989 shares of the semiconductor manufacturer’s stock worth $616,000 after buying an additional 25 shares during the period. NORTHSTAR ASSET MANAGEMENT Co raised its holdings in Broadcom by 0.5% during the first quarter. NORTHSTAR ASSET MANAGEMENT Co now owns 5,350 shares of the semiconductor manufacturer’s stock valued at $1,656,000 after acquiring an additional 25 shares during the period. RFG Holdings Inc. lifted its position in shares of Broadcom by 0.3% in the first quarter. RFG Holdings Inc. now owns 8,499 shares of the semiconductor manufacturer’s stock valued at $2,631,000 after acquiring an additional 26 shares in the last quarter. Yukon Wealth Management Inc. lifted its position in shares of Broadcom by 1.1% in the first quarter. Yukon Wealth Management Inc. now owns 2,501 shares of the semiconductor manufacturer’s stock valued at $774,000 after acquiring an additional 26 shares in the last quarter. Finally, NerdWallet Wealth Partners LLC boosted its stake in shares of Broadcom by 2.6% in the second quarter. NerdWallet Wealth Partners LLC now owns 1,057 shares of the semiconductor manufacturer’s stock worth $399,000 after acquiring an additional 27 shares during the period. 76.43% of the stock is owned by hedge funds and other institutional investors.

Broadcom News Summary

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom exceeded third-quarter expectations, reporting adjusted EPS of $3.32 versus $3.22 expected and revenue of $29.59 billion versus $29.24 billion expected. Revenue increased 85.5% year over year, while reported profit rose sharply. Broadcom third-quarter financial results
• Positive Sentiment: AI semiconductor revenue surged to approximately $16.7 billion, up 221% from a year earlier and 54% sequentially. Broadcom also highlighted more than $30 billion in AI bookings, supporting the long-term custom-chip demand outlook. Broadcom AI revenue and quarterly results
• Positive Sentiment: Several analysts raised their targets following the results. Cantor Fitzgerald and Rosenblatt Securities lifted targets to $600, while BMO Capital Markets raised its target to $575. KeyCorp reaffirmed its Overweight rating with a $575 target, and Macquarie upgraded the stock to Outperform, citing potential growth in Anthropic-related AI business. Analyst forecast increases
• Positive Sentiment: The company declared a quarterly dividend of $0.65 per share and generated $13.7 billion in free cash flow, reinforcing its financial strength and shareholder-return profile.
• Neutral Sentiment: CEO Hock Tan said AI demand could be significantly higher, but data-center deployments are being delayed by constraints involving land, power, chips and substrates. These bottlenecks may limit near-term revenue recognition while potentially extending the demand cycle. Broadcom CEO on AI demand and data centers
• Negative Sentiment: Broadcom forecast fourth-quarter revenue of approximately $34.8 billion, below the roughly $35.0 billion analyst consensus. Investors viewed the outlook as insufficient against exceptionally high AI-growth expectations, overshadowing the earnings beat. Broadcom quarterly revenue forecast
• Negative Sentiment: Market concerns include possible competition from Marvell and Google’s diversification of chip suppliers, questions about who will finance data-center expansion, and AVGO’s demanding valuation. Third Point also exited its Broadcom position in the second quarter, although the holding was relatively small.

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.