Broadcom (NASDAQ:AVGO) Shares Up 2.6% – Should You Buy?

Shares of Broadcom Inc. (NASDAQ:AVGO) were up 2.6% during mid-day trading on Monday . The company traded as high as $360.00 and last traded at $358.39. Approximately 16,309,653 shares were traded during trading, a decline of 36% from the average daily volume of 25,520,754 shares. The stock had previously closed at $349.43.

Wall Street Analyst Weigh In

A number of analysts have weighed in on the stock. UBS Group set a $415.00 price target on shares of Broadcom and gave the company a “buy” rating in a report on Tuesday, October 14th. Truist Financial upped their price objective on shares of Broadcom from $295.00 to $365.00 and gave the company a “buy” rating in a research report on Friday, September 5th. Macquarie started coverage on shares of Broadcom in a research note on Monday, September 15th. They issued an “outperform” rating and a $420.00 target price for the company. Benchmark lifted their target price on Broadcom from $315.00 to $385.00 and gave the stock a “buy” rating in a research report on Friday, September 5th. Finally, Barclays set a $450.00 price target on Broadcom and gave the company an “overweight” rating in a research note on Tuesday, October 14th. Three analysts have rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Buy” and a consensus price target of $372.52.

Broadcom Price Performance

The stock has a market capitalization of $1.69 trillion, a P/E ratio of 91.43, a PEG ratio of 1.41 and a beta of 1.19. The company’s 50 day simple moving average is $344.91 and its two-hundred day simple moving average is $290.63. The company has a debt-to-equity ratio of 0.86, a current ratio of 1.50 and a quick ratio of 1.37.

Broadcom (NASDAQ:AVGO) last announced its earnings results on Thursday, September 4th. The semiconductor manufacturer reported $1.69 EPS for the quarter, topping the consensus estimate of $1.66 by $0.03. The business had revenue of $15.95 billion for 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%.Broadcom’s revenue was up 22.0% compared to the same quarter last year. During the same period in the previous year, the business earned $1.24 EPS. Broadcom has set its Q4 2025 guidance at EPS. As a group, equities analysts expect that Broadcom Inc. will post 5.38 EPS for the current fiscal year.

Broadcom Announces Dividend

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. The ex-dividend date was Monday, September 22nd. This represents a $2.36 dividend on an annualized basis and a dividend yield of 0.7%. Broadcom’s dividend payout ratio (DPR) is 60.20%.

Insiders Place Their Bets

In related news, insider Charlie B. Kawwas sold 3,893 shares of the company’s stock in a transaction dated Wednesday, September 17th. The shares were sold at an average price of $347.82, for a total transaction of $1,354,063.26. Following the transaction, the insider owned 25,295 shares in the company, valued at $8,798,106.90. This represents a 13.34% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Mark David Brazeal sold 16,558 shares of the firm’s stock in a transaction dated Wednesday, September 17th. The shares were sold at an average price of $347.61, for a total transaction of $5,755,726.38. Following the completion of the sale, the insider owned 329,302 shares of the company’s stock, valued at $114,468,668.22. The trade was a 4.79% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders purchased 3,550 shares of company stock valued at $1,227,869 and sold 665,271 shares valued at $225,464,248. 2.00% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the stock. Arthur M. Cohen & Associates LLC increased its position in Broadcom by 0.6% in the third quarter. Arthur M. Cohen & Associates LLC now owns 4,781 shares of the semiconductor manufacturer’s stock worth $1,577,000 after purchasing an additional 30 shares during the period. Jackson Hole Capital Partners LLC boosted its stake in shares of Broadcom by 1.4% in the 3rd quarter. Jackson Hole Capital Partners LLC now owns 2,170 shares of the semiconductor manufacturer’s stock valued at $716,000 after purchasing an additional 30 shares during the last quarter. Private Wealth Partners LLC boosted its stake in shares of Broadcom by 0.7% in the 3rd quarter. Private Wealth Partners LLC now owns 4,273 shares of the semiconductor manufacturer’s stock valued at $1,410,000 after purchasing an additional 30 shares during the last quarter. McHugh Group LLC grew its position in shares of Broadcom by 0.4% during the 3rd quarter. McHugh Group LLC now owns 8,433 shares of the semiconductor manufacturer’s stock worth $2,782,000 after buying an additional 31 shares during the period. Finally, Smith Thornton Advisors LLC raised its stake in shares of Broadcom by 1.4% during the third quarter. Smith Thornton Advisors LLC now owns 2,313 shares of the semiconductor manufacturer’s stock worth $763,000 after buying an additional 31 shares during the last quarter. Institutional investors own 76.43% of the company’s stock.

Broadcom Company Profile

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.