Broadcom (NASDAQ:AVGO) Shares Up 1.7% – What’s Next?

Shares of Broadcom Inc. (NASDAQ:AVGO) shot up 1.7% on Friday . The company traded as high as $430.84 and last traded at $427.76. 14,271,408 shares were traded during mid-day trading, a decline of 44% from the average session volume of 25,398,705 shares. The stock had previously closed at $420.57.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: AI infrastructure remains the primary catalyst. Analysts highlight Broadcom’s reported 143% growth in AI semiconductor revenue, $10.8 billion in quarterly AI semiconductor sales and more than $30 billion in AI bookings, suggesting demand is substantially exceeding current shipments. The Grandest Castle Ever Floated and the Stocks to Profit From It
• Positive Sentiment: Broadcom is repeatedly identified as a potential beneficiary of shortages in AI networking, optical interconnects and power-delivery components. Coverage argues that accelerating hyperscaler capital expenditures could support multi-year growth for the company. The AI Boom’s Best-Kept Secret
• Positive Sentiment: Semiconductor sales continue to be supported by AI optimism, while Broadcom’s high return on equity and strong earnings growth make it one of the highlighted semiconductor stocks. Semiconductor Sales Continue to Grow on AI Optimism: 4 Stocks to Grab
• Positive Sentiment: Broadcom also announced enhanced VMware vDefend and Avi Load Balancer capabilities, adding cybersecurity and operational-efficiency features for private-cloud customers operating in the AI era. Broadcom Enables Enterprises to Strengthen Multi-Layer Cyber Defense and Operational Efficiency
• Neutral Sentiment: SCS Capital Management sold 3,867 Broadcom shares. The transaction is a modest portfolio-management signal and does not change the company’s operating outlook. SCS Capital Trims Broadcom Stake
• Negative Sentiment: Oil-price concerns have ended a recent market rally, creating a broader inflation and risk-appetite headwind. Broadcom’s elevated valuation and stretched technical position could also increase volatility if investors rotate away from high-growth technology stocks. 5 High ROE Stocks to Buy as Oil Price Surge Hits Short-Term Rally

Analysts Set New Price Targets

AVGO has been the topic of several recent analyst reports. Truist Financial raised their price objective on Broadcom from $545.00 to $550.00 and gave the company a “buy” rating in a research note on Thursday, June 4th. UBS Group set a $485.00 price target on shares of Broadcom and gave the company a “buy” rating in a research report on Thursday, June 4th. DA Davidson upped their price objective on shares of Broadcom from $375.00 to $400.00 and gave the stock a “neutral” rating in a research report on Thursday, June 4th. Mizuho increased their price objective on shares of Broadcom from $480.00 to $530.00 and gave the company an “outperform” rating in a research note on Thursday, June 4th. Finally, KeyCorp restated an “overweight” rating and issued a $575.00 target price (up from $500.00) on shares of Broadcom in a research note on Thursday, June 4th. Twenty-eight investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $493.24.

Broadcom Trading Up 1.7%

The company has a debt-to-equity ratio of 0.71, a current ratio of 2.24 and a quick ratio of 2.01. The stock has a market capitalization of $2.04 trillion, a PE ratio of 71.29, a PEG ratio of 0.80 and a beta of 1.45. The stock’s 50 day simple moving average is $393.37 and its two-hundred day simple moving average is $370.05.

Broadcom (NASDAQ:AVGO) last released its earnings results 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. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. 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 firm earned $1.58 EPS. The company’s revenue was up 47.9% compared to the same quarter last year. On average, sell-side analysts expect that Broadcom Inc. will post 10.24 EPS for the current year.

Broadcom Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Monday, June 22nd were paid a $0.65 dividend. The ex-dividend date was Monday, June 22nd. This represents a $2.60 annualized dividend and a dividend yield of 0.6%. Broadcom’s payout ratio is presently 43.33%.

Insider Transactions at Broadcom

In other news, insider Mark David Brazeal sold 25,000 shares of the stock in a transaction on Friday, July 10th. The stock was sold at an average price of $401.33, for a total transaction of $10,033,250.00. Following the completion of the transaction, the insider owned 194,989 shares in the company, valued at approximately $78,254,935.37. This represents a 11.36% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Harry L. You acquired 1,000 shares of the stock in a transaction that occurred on Thursday, June 11th. The stock was purchased at an average price of $373.57 per share, for a total transaction of $373,570.00. Following the completion of the purchase, the director directly owned 38,466 shares in the company, valued at $14,369,743.62. This trade represents a 2.67% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders sold 61,644 shares of company stock worth $24,016,214 over the last quarter. 1.90% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Broadcom

Institutional investors have recently made changes to their positions in the stock. ROSS JOHNSON & Associates LLC grew its holdings in 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 buying an additional 66 shares in the last quarter. SWAN Capital LLC increased its position in shares of 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 lifted its holdings in shares of Broadcom by 546.2% in the first quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer’s stock worth $26,000 after buying an additional 71 shares in the last quarter. Nvest Wealth Strategies Inc. purchased a new stake in shares of Broadcom in the fourth quarter worth about $33,000. Finally, Family CFO Inc bought a new position in shares of Broadcom in the fourth quarter valued at approximately $35,000. Hedge funds and other institutional investors own 76.43% of the company’s stock.

About Broadcom

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.