Broadcom (NASDAQ:AVGO) Shares Up 3.6% – What’s Next?

Broadcom Inc. (NASDAQ:AVGO)’s stock price traded up 3.6% during mid-day trading on Thursday . The company traded as high as $389.50 and last traded at $385.57. 33,778,862 shares traded hands during mid-day trading, an increase of 30% from the average session volume of 25,964,875 shares. The stock had previously closed at $372.10.

Trending Headlines about Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Wall Street analysts and banks remain upbeat, with several reports raising price targets and earnings estimates for Broadcom after the selloff, suggesting the post-earnings pullback may have created a buying opportunity. Article Title
• Positive Sentiment: Broadcom continues to show strong AI demand, with commentary highlighting record revenue growth, AI semiconductor revenue surging, and a very large AI booking pipeline that supports the long-term growth story. Article Title
• Positive Sentiment: New coverage frames Broadcom as a leading AI stock and a top holding for major investors, reinforcing confidence in its role in custom AI chips and infrastructure spending. Article Title
• Positive Sentiment: Broadcom also announced cash tender offers for some outstanding debt securities, which may help optimize its balance sheet and lower financing risk over time. Article Title
• Neutral Sentiment: Some commentary suggests the stock’s recent drop reflects broader AI-stock de-risking rather than a company-specific collapse, as investors reassess what “good” earnings deserve in an expensive AI trade. Article Title
• Neutral Sentiment: Bearish takes continue to focus on Broadcom’s premium valuation and concerns that management’s AI messaging may be too cautious or too narrow, especially after the CEO said the company will focus only on chips. Article Title
• Negative Sentiment: Multiple reports say Broadcom’s shares have fallen sharply since earnings because the market was disappointed by the AI revenue guide and is questioning whether the stock’s premium valuation is still justified. Article Title

Wall Street Analyst Weigh In

AVGO has been the subject of several recent analyst reports. TD Cowen reaffirmed a “buy” rating and set a $500.00 target price on shares of Broadcom in a research note on Thursday, June 4th. UBS Group set a $485.00 price target on Broadcom and gave the company a “buy” rating in a research note on Thursday, June 4th. Cantor Fitzgerald restated an “overweight” rating and set a $525.00 price target on shares of Broadcom in a report on Thursday, June 4th. Weiss Ratings raised shares of Broadcom from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Wednesday, May 27th. Finally, Bank of America lifted their price objective on shares of Broadcom from $450.00 to $530.00 and gave the company a “buy” rating in a research note on Thursday, June 4th. One investment analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat.com, Broadcom has an average rating of “Moderate Buy” and an average target price of $490.13.

Broadcom Price Performance

The company has a debt-to-equity ratio of 0.71, a quick ratio of 2.01 and a current ratio of 2.24. The business has a 50 day simple moving average of $401.36 and a 200-day simple moving average of $362.87. The firm has a market cap of $1.83 trillion, a price-to-earnings ratio of 64.26, a P/E/G ratio of 0.71 and a beta of 1.41.

Broadcom (NASDAQ:AVGO) last issued its quarterly earnings data on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, topping the consensus estimate of $2.40 by $0.04. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.The firm had revenue of $22.19 billion during the quarter, compared to the consensus estimate of $22.13 billion. During the same period in the prior year, the business posted $1.58 earnings per share. The company’s quarterly revenue was up 47.9% compared to the same quarter last year. Equities research analysts expect that Broadcom Inc. will post 9.97 earnings per share for the current year.

Broadcom Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 22nd will be given a $0.65 dividend. This represents a $2.60 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend is Monday, June 22nd. Broadcom’s dividend payout ratio is presently 43.33%.

Insider Buying and Selling

In other Broadcom news, insider Charlie B. Kawwas sold 39,116 shares of Broadcom stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $321.61, for a total transaction of $12,580,096.76. Following the transaction, the insider directly owned 74,626 shares of the company’s stock, valued at $24,000,467.86. The trade was a 34.39% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Kirsten M. Spears sold 36,292 shares of the stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $321.60, for a total transaction of $11,671,507.20. Following the completion of the sale, the chief financial officer owned 327,760 shares of the company’s stock, valued at approximately $105,407,616. This represents a 9.97% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 324,282 shares of company stock valued at $106,425,249 in the last 90 days. Insiders own 1.90% of the company’s stock.

Institutional Trading of Broadcom

A number of hedge funds have recently bought and sold shares of the business. ROSS JOHNSON & Associates LLC increased its position in shares of Broadcom by 1,320.0% during the 4th quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer’s stock valued at $25,000 after purchasing an additional 66 shares during the last quarter. SWAN Capital LLC grew its position in Broadcom by 261.9% during the fourth quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer’s stock valued at $26,000 after buying an additional 55 shares during the period. Networth Advisors LLC grew its position in Broadcom by 546.2% during the first quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer’s stock valued at $26,000 after buying an additional 71 shares during the period. Miller Global Investments LLC purchased a new stake in Broadcom during the fourth quarter worth about $31,000. Finally, Nvest Wealth Strategies Inc. purchased a new stake in Broadcom during the fourth quarter worth about $33,000. 76.43% of the stock is currently owned by institutional investors.

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.