Broadcom (NASDAQ:AVGO) Shares Up 3.2% – Should You Buy?

Shares of Broadcom Inc. (NASDAQ:AVGO) 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 changed 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 Stories Impacting Broadcom

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 brokerages recently weighed in on AVGO. Zacks Research cut shares of Broadcom from a “strong-buy” rating to a “hold” rating in a research report on Thursday, May 21st. Truist Financial boosted their price objective on Broadcom from $545.00 to $550.00 and gave the stock a “buy” rating in a research note on Thursday, June 4th. Seaport Research Partners reaffirmed a “neutral” rating on shares of Broadcom in a research report on Wednesday, April 8th. Cantor Fitzgerald reiterated an “overweight” rating and issued a $525.00 target price on shares of Broadcom in a research note on Thursday, June 4th. Finally, Dbs Bank upgraded Broadcom to a “moderate buy” rating in a report on Thursday, June 18th. 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 stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $493.24.

Broadcom Price Performance

The stock has a market cap of $1.91 trillion, a PE ratio of 66.85, a P/E/G ratio of 0.65 and a beta of 1.45. The company has a current ratio of 2.24, a quick ratio of 2.01 and a debt-to-equity ratio of 0.71. The company’s 50 day moving average is $405.37 and its 200-day moving average is $363.44.

Broadcom (NASDAQ:AVGO) last posted its quarterly earnings data on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share for the quarter, beating analysts’ consensus estimates of $2.40 by $0.04. The company had revenue of $22.19 billion during the quarter, compared to analysts’ expectations of $22.13 billion. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The firm’s revenue for the quarter was up 47.9% on a year-over-year basis. During the same period in the prior year, the company posted $1.58 EPS. As a group, sell-side analysts predict that Broadcom Inc. will post 10.24 earnings per share for the current year.

Broadcom Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 22nd were issued a $0.65 dividend. The ex-dividend date of this dividend was Monday, June 22nd. This represents a $2.60 dividend on an annualized basis and a yield of 0.6%. Broadcom’s dividend payout ratio is currently 43.33%.

Insiders Place Their Bets

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 stock was sold at an average price of $370.52, for a total transaction of $2,964,160.00. Following the completion of the sale, the insider owned 57,932 shares in the company, valued at $21,464,964.64. This trade represents a 12.13% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Justine Page sold 1,602 shares of Broadcom stock in a transaction that occurred on Monday, June 29th. The stock was sold at an average price of $373.86, for a total value of $598,923.72. Following the sale, the director owned 17,426 shares in the company, valued at $6,514,884.36. This represents a 8.42% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 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 Trading of Broadcom

Several institutional investors have recently added to or reduced their stakes in AVGO. Shira Ridge Wealth Management raised its stake in Broadcom by 3.6% during the second quarter. Shira Ridge Wealth Management now owns 1,481 shares of the semiconductor manufacturer’s stock valued at $559,000 after buying an additional 51 shares in the last quarter. Atlas Brown Inc. lifted its holdings in Broadcom by 23.9% during the 2nd quarter. Atlas Brown Inc. now owns 2,387 shares of the semiconductor manufacturer’s stock worth $902,000 after buying an additional 461 shares during the last quarter. Alliance Wealth Advisors LLC grew its position in shares of Broadcom by 4.2% in the 2nd quarter. Alliance Wealth Advisors LLC now owns 2,406 shares of the semiconductor manufacturer’s stock worth $909,000 after acquiring an additional 97 shares in the last quarter. Allied Private Wealth LLC acquired a new position in shares of Broadcom in the 2nd quarter worth approximately $1,035,000. Finally, Corepath Wealth Partners LLC bought a new stake in shares of Broadcom in the 2nd quarter valued at approximately $215,000. 76.43% of the stock is owned by institutional investors and hedge funds.

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.