Broadcom (NASDAQ:AVGO) Stock Price Up 4% – Should You Buy?

Broadcom Inc. (NASDAQ:AVGO) shot up 4% during trading on Wednesday. The company traded as high as $356.85 and last traded at $345.22. Approximately 32,295,740 shares changed hands during trading, an increase of 29% from the average daily volume of 25,079,223 shares. The stock had previously closed at $331.98.

Key Stories Impacting Broadcom

These are some of the AVGO stories that stood out recently:

• Positive Sentiment: Nvidia’s leadership upheaval could encourage cloud providers to diversify chip suppliers, potentially benefiting Broadcom’s custom AI accelerator business. NVIDIA’s crisis opens opportunities for chip rivals
• Neutral Sentiment: Broadcom’s custom-chip and networking exposure positions it to participate in continued AI infrastructure investment, but the scale and durability of that spending remain central questions for investors.
• Negative Sentiment: Rothschild & Co Redburn downgraded Broadcom from Buy to Neutral and lowered its price target by 33%, from $595 to $398. The firm cited risks from AI financing arrangements and Broadcom’s exposure to AI startups, including Anthropic and OpenAI, which are not yet self-funding. This was the main catalyst for the stock’s decline. Rothschild flags AI financing risks

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on AVGO shares. Lake Street Capital upgraded shares of Broadcom to a “buy” rating in a research report on Thursday, September 3rd. William Blair cut shares of Broadcom from an “outperform” rating to a “market perform” rating in a research note on Tuesday, October 27th. BNP Paribas Exane lifted their price objective on shares of Broadcom from $675.00 to $715.00 and gave the stock an “outperform” rating in a research note on Friday, September 4th. Raymond James Financial restated an “outperform” rating and set a $475.00 target price (up from $450.00) on shares of Broadcom in a research report on Thursday, September 3rd. Finally, Citigroup downgraded shares of Broadcom from a “buy” rating to a “neutral” rating in a report on Tuesday, October 27th. One investment analyst has rated the stock with a Strong Buy rating, thirty-eight have issued a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $525.19.

Broadcom Stock Performance

The company has a market capitalization of $1.65 trillion, a P/E ratio of 44.05 and a beta of 1.49. The business has a 50-day moving average of $345.59 and a 200-day moving average of $366.48. 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 (NASDAQ:AVGO) last posted its quarterly earnings data 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 for the quarter, compared to analysts’ expectations of $29.24 billion. Broadcom had a net margin of 42.94% and a return on equity of 48.33%. The business’s revenue was up 85.5% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.69 earnings per share. On average, sell-side analysts anticipate that Broadcom Inc. will post 10.20 EPS for the current year.

Broadcom Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Monday, September 21st were paid a dividend of $0.65 per share. The ex-dividend date of this dividend was Monday, September 21st. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.8%. Broadcom’s dividend payout ratio is currently 33.21%.

Institutional Trading of Broadcom

A number of large investors have recently modified their holdings of the company. Core Capital Management & Research inc. bought a new stake in Broadcom during the second quarter valued at about $31,000. Harborfront Financial Group LLC acquired a new stake in Broadcom during the 2nd quarter worth about $38,000. DecisionPoint Financial LLC grew its stake in Broadcom by 101.9% during the 3rd quarter. DecisionPoint Financial LLC now owns 105 shares of the semiconductor manufacturer’s stock valued at $36,000 after purchasing an additional 53 shares during the last quarter. Align Financial LLC grew its stake in Broadcom by 67.2% during the 3rd quarter. Align Financial LLC now owns 112 shares of the semiconductor manufacturer’s stock valued at $38,000 after purchasing an additional 45 shares during the last quarter. Finally, Curry Webb Wealth Management LLC acquired a new position in shares of Broadcom in the third quarter valued at about $41,000. Hedge funds and other institutional investors own 76.43% of the company’s stock.

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.