Broadcom (NASDAQ:AVGO) Reaches New 52-Week High – Here’s Why

Broadcom Inc. (NASDAQ:AVGO) reached a new 52-week high during trading on Tuesday . The company traded as high as $387.18 and last traded at $386.2850, with a volume of 26776607 shares trading hands. The stock had previously closed at $377.96.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on AVGO shares. UBS Group set a $415.00 target price on Broadcom and gave the stock a “buy” rating in a research note on Tuesday, October 14th. Benchmark upped their price target on shares of Broadcom from $315.00 to $385.00 and gave the stock a “buy” rating in a research note on Friday, September 5th. Weiss Ratings upgraded shares of Broadcom from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Tuesday. Macquarie started coverage on shares of Broadcom in a research report on Monday, September 15th. They set an “outperform” rating and a $420.00 price target for the company. Finally, Truist Financial raised their price objective on Broadcom from $295.00 to $365.00 and gave the company a “buy” rating in a research note on Friday, September 5th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-one have given a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, Broadcom has an average rating of “Buy” and a consensus price target of $377.61.

Broadcom Stock Up 3.3%

The firm has a market cap of $1.88 trillion, a PE ratio of 101.42, a P/E/G ratio of 1.31 and a beta of 1.19. The company has a quick ratio of 1.37, a current ratio of 1.50 and a debt-to-equity ratio of 0.86. The firm’s 50 day moving average is $349.96 and its 200-day moving average is $304.36.

Broadcom (NASDAQ:AVGO) last announced its quarterly earnings data on Thursday, September 4th. The semiconductor manufacturer reported $1.69 EPS for the quarter, beating analysts’ consensus estimates of $1.66 by $0.03. The business had revenue of $15.95 billion during the quarter, compared to the consensus estimate of $15.82 billion. Broadcom had a return on equity of 36.60% and a net margin of 31.59%.The business’s revenue for the quarter was up 22.0% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.24 earnings per share. Broadcom has set its Q4 2025 guidance at EPS. As a group, equities research analysts expect that Broadcom Inc. will post 5.38 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 30th. Stockholders of record on Monday, September 22nd were paid a $0.59 dividend. This represents a $2.36 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date of this dividend was Monday, September 22nd. Broadcom’s dividend payout ratio (DPR) is currently 60.20%.

Insider Buying and Selling

In other news, CEO Hock E. Tan sold 148,154 shares of the company’s stock in a transaction on Wednesday, September 10th. The shares were sold at an average price of $336.67, for a total value of $49,879,007.18. Following the completion of the transaction, the chief executive officer directly owned 825,998 shares in the company, valued at approximately $278,088,746.66. This represents a 15.21% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Mark David Brazeal sold 16,558 shares of the business’s stock in a transaction on Wednesday, September 17th. The stock was sold at an average price of $347.61, for a total transaction of $5,755,726.38. Following the completion of the transaction, the insider owned 329,302 shares in the company, valued at $114,468,668.22. This represents a 4.79% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders bought 3,550 shares of company stock valued at $1,227,869 and sold 665,271 shares valued at $225,483,192. 2.00% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Sawyer & Company Inc grew its stake in shares of Broadcom by 62.1% in the second quarter. Sawyer & Company Inc now owns 94 shares of the semiconductor manufacturer’s stock worth $26,000 after purchasing an additional 36 shares in the last quarter. JCIC Asset Management Inc. bought a new stake in Broadcom during the third quarter worth approximately $31,000. Longfellow Investment Management Co. LLC bought a new position in Broadcom during the 2nd quarter valued at $27,000. Legend Financial Advisors Inc. bought a new position in Broadcom during the second quarter valued at about $28,000. Finally, Teachers Insurance & Annuity Association of America acquired a new position in Broadcom during the second quarter worth about $28,000. 76.43% of the stock is owned by institutional investors and hedge funds.

About Broadcom

Broadcom Inc designs, develops, and supplies various semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. The company operates in two segments, Semiconductor Solutions and Infrastructure Software.