Broadcom’s (AVGO) Sector Perform Rating Reaffirmed at Royal Bank Of Canada

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

Other equities research analysts have also issued reports about the company. TD Cowen restated a “buy” rating on shares of Broadcom in a research report on Thursday. Wall Street Zen downgraded Broadcom from a “strong-buy” rating to a “buy” rating in a report on Saturday, July 18th. Wells Fargo & Company reissued an “overweight” rating and set a $545.00 price objective (up from $430.00) on shares of Broadcom in a research report on Thursday, May 14th. Benchmark upped their target price on shares of Broadcom from $485.00 to $545.00 and gave the stock a “buy” rating in a research report on Thursday, June 4th. Finally, DA Davidson increased their price target on shares of Broadcom from $375.00 to $400.00 and gave the stock a “neutral” rating in a research note on Thursday, June 4th. Twenty-nine investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $501.77.

Broadcom Trading Down 6.4%

AVGO stock traded down $23.52 during trading 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. Broadcom has a 52 week low of $289.96 and a 52 week high of $495.00. The company has a market cap of $1.64 trillion, a P/E ratio of 57.21, a PEG ratio of 0.71 and a beta of 1.44. The business has a 50 day moving average of $384.15 and a 200 day moving average of $377.14. The company has a debt-to-equity ratio of 0.71, a current ratio of 2.24 and a quick ratio of 2.01.

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 the consensus estimate of $3.22 by $0.10. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.The business had revenue of $29.59 billion for the quarter, compared to analysts’ expectations of $29.24 billion. During the same period in the previous year, the firm posted $1.69 EPS. The business’s revenue was up 85.5% on a year-over-year basis. As a group, sell-side analysts forecast that Broadcom will post 10.24 earnings per share for the current fiscal year.

Insider Activity

In related news, Director Justine Page sold 1,602 shares of the stock in a transaction dated Monday, June 29th. The shares were sold at an average price of $373.86, for a total transaction of $598,923.72. Following the sale, the director directly owned 17,426 shares of the company’s stock, valued at approximately $6,514,884.36. This represents a 8.42% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Harry L. You acquired 1,000 shares of Broadcom stock in a transaction on Thursday, June 11th. The shares were purchased at an average price of $373.57 per share, with a total value of $373,570.00. Following the completion of the purchase, the director owned 38,466 shares in the company, valued at $14,369,743.62. This represents a 2.67% increase in their position. The SEC filing for this purchase provides additional information. In the last quarter, insiders have sold 61,644 shares of company stock worth $24,016,214. 1.90% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Broadcom

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

Key Broadcom News

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.