Broadcom (NASDAQ:AVGO) Shares Climb 2.8% Following Analyst Upgrade

Shares of Broadcom Inc. (NASDAQ:AVGO) shot up 2.8% during mid-day trading on Wednesday after DA Davidson upgraded the stock from a neutral rating to a buy rating. DA Davidson now has a $400.00 price target on the stock, up from their previous price target of $350.00. Broadcom traded as high as $352.40 and last traded at $351.81. 21,865,203 shares changed hands during mid-day trading, a decline of 12% from the average daily volume of 24,811,209 shares. The stock had previously closed at $342.33.

Other equities analysts also recently issued research reports about the company. KeyCorp restated an “overweight” rating and issued a $575.00 target price on shares of Broadcom in a research report on Thursday, September 3rd. BMO Capital Markets boosted their price target on Broadcom from $455.00 to $575.00 and gave the stock an “outperform” rating in a research report on Thursday, September 3rd. UBS Group cut Broadcom from a “buy” rating to a “hold” rating in a research report on Thursday, September 3rd. Royal Bank Of Canada initiated coverage on Broadcom in a report on Thursday, September 3rd. They issued an “outperform” rating on the stock. Finally, Sanford C. Bernstein restated a “buy” rating on shares of Broadcom in a report on Monday, September 21st. One analyst has rated the stock with a Strong Buy rating, thirty-nine have assigned a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $530.52.

Broadcom News Summary

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: A consortium including Bank of America, Blackstone, Citigroup and Morgan Stanley committed approximately $63 billion to finance Broadcom’s AI accelerators and networking equipment for Anthropic. The equipment would be leased to the AI company, potentially creating significant demand for Broadcom’s custom chips and networking products. Broadcom’s $63 Billion Anthropic Financing
• Positive Sentiment: Truist estimated the Anthropic arrangement could generate as much as $30 billion in revenue for Broadcom with limited direct risk, reinforcing expectations for continued growth in custom AI processors and data-center networking. Broadcom Anthropic Revenue Estimate
• Positive Sentiment: D.A. Davidson upgraded Broadcom to Buy from Neutral and raised its price target to $400, citing sustained AI spending and potential public offerings by major AI developers. Rosenblatt also reaffirmed its Buy rating with a $600 target. Broadcom Analyst Upgrade
• Neutral Sentiment: Reports that Broadcom, Nvidia and AMD could invest in Meta highlight strong AI infrastructure demand, but also raise questions about circular financing and suppliers becoming financially exposed to their largest customers. Chip Suppliers and Meta Investment
• Negative Sentiment: Investors remain concerned that AI-rack lease guarantees and other off-balance-sheet commitments could reach roughly $43 billion. Rising interest rates, supply constraints, margin pressure and dependence on a concentrated group of AI customers could increase financial and valuation risk. Broadcom AI Risk Analysis

Institutional Investors Weigh In On Broadcom

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Cornerstone Advisors LLC purchased a new stake in shares of Broadcom in the 2nd quarter valued at approximately $92,522,000. GAMMA Investing LLC raised its position in shares of Broadcom by 8.8% during the 3rd quarter. GAMMA Investing LLC now owns 164,015 shares of the semiconductor manufacturer’s stock valued at $55,889,000 after buying an additional 13,317 shares during the period. ANB Bank purchased a new stake in shares of Broadcom during the 3rd quarter valued at approximately $1,181,000. Bank of America Corp DE lifted its holdings in Broadcom by 1.5% in the first quarter. Bank of America Corp DE now owns 58,737,097 shares of the semiconductor manufacturer’s stock valued at $18,179,719,000 after acquiring an additional 894,564 shares during the last quarter. Finally, Clear Harbor Asset Management LLC acquired a new position in Broadcom in the second quarter valued at approximately $3,302,000. Institutional investors and hedge funds own 76.43% of the company’s stock.

Broadcom Stock Up 2.8%

The stock has a market capitalization of $1.68 trillion, a price-to-earnings ratio of 44.93 and a beta of 1.46. 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 business has a fifty day moving average of $354.48 and a 200 day moving average of $366.99.

Broadcom (NASDAQ:AVGO) last posted its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share (EPS) for the quarter, topping 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 analysts’ expectations of $29.24 billion. During the same quarter last year, the firm earned $1.69 earnings per share. The firm’s quarterly revenue was up 85.5% compared to the same quarter last year. As a group, equities analysts predict that Broadcom Inc. will post 10.37 earnings per share for the current year.

Broadcom Announces Dividend

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

About Broadcom

Broadcom Inc (NASDAQ: AVGO) is a global technology company that designs, develops and supplies semiconductor and infrastructure software products. Its semiconductor solutions support data center, networking, broadband, wireless communications, storage, industrial and other electronic applications.

The company’s semiconductor portfolio includes networking and switching components, custom accelerators, connectivity and wireless devices, broadband equipment, optical products, storage controllers and related infrastructure technologies.