Broadcom (NASDAQ:AVGO) Cut to Hold at Wall Street Zen

Wall Street Zen downgraded shares of Broadcom (NASDAQ:AVGO) from a buy rating to a hold rating in a research report released on Saturday.

A number of other research firms have also weighed in on AVGO. Wells Fargo & Company raised their price objective on shares of Broadcom from $255.00 to $345.00 and gave the company an “equal weight” rating in a research note on Friday, September 5th. Sanford C. Bernstein raised their price target on shares of Broadcom from $295.00 to $400.00 and gave the company an “outperform” rating in a report on Friday, September 5th. Deutsche Bank Aktiengesellschaft set a $400.00 price target on shares of Broadcom and gave the company a “buy” rating in a report on Tuesday, October 14th. Oppenheimer reaffirmed an “outperform” rating and set a $360.00 price target (up previously from $325.00) on shares of Broadcom in a report on Friday, September 5th. Finally, Rosenblatt Securities raised their price target on shares of Broadcom from $340.00 to $400.00 and gave the company a “buy” rating in a report on Friday, September 5th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty have assigned a Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Buy” and an average target price of $372.52.

Broadcom Stock Up 2.2%

NASDAQ:AVGO opened at $362.05 on Friday. The firm has a market cap of $1.71 trillion, a P/E ratio of 92.36, a P/E/G ratio of 1.99 and a beta of 1.20. The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.37 and a current ratio of 1.50. Broadcom has a fifty-two week low of $138.10 and a fifty-two week high of $374.23. The firm has a 50-day simple moving average of $332.60 and a two-hundred day simple moving average of $277.81.

Broadcom (NASDAQ:AVGO) last released its quarterly earnings data on Thursday, September 4th. The semiconductor manufacturer reported $1.69 earnings per share 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 analyst estimates of $15.82 billion. Broadcom had a net margin of 31.59% and a return on equity of 36.60%. Broadcom’s revenue was up 22.0% compared to the same quarter last year. During the same period last year, the business earned $1.24 EPS. Broadcom has set its Q4 2025 guidance at EPS. Analysts predict that Broadcom will post 5.38 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, September 30th. Investors of record on Monday, September 22nd were issued a $0.59 dividend. The ex-dividend date of this dividend 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 presently 60.20%.

Insider Buying and Selling

In related news, insider Mark David Brazeal sold 16,558 shares of the firm’s stock in a transaction that occurred on Wednesday, September 17th. The shares were sold at an average price of $347.61, for a total value of $5,755,726.38. Following the transaction, the insider owned 329,302 shares of the company’s stock, valued at approximately $114,468,668.22. This trade represents a 4.79% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO Hock E. Tan sold 148,154 shares of Broadcom stock in a transaction that occurred on Wednesday, September 10th. The shares were sold at an average price of $336.67, for a total transaction of $49,879,007.18. Following the transaction, the chief executive officer directly owned 825,998 shares in the company, valued at $278,088,746.66. This represents a 15.21% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have bought 3,550 shares of company stock valued at $1,227,869 and have sold 665,271 shares valued at $225,464,248. 2.00% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Broadcom

Several large investors have recently added to or reduced their stakes in AVGO. Brighton Jones LLC lifted its holdings in Broadcom by 21.8% during the fourth quarter. Brighton Jones LLC now owns 29,683 shares of the semiconductor manufacturer’s stock valued at $6,882,000 after purchasing an additional 5,322 shares in the last quarter. Revolve Wealth Partners LLC lifted its holdings in Broadcom by 10.4% during the fourth quarter. Revolve Wealth Partners LLC now owns 7,997 shares of the semiconductor manufacturer’s stock valued at $1,854,000 after purchasing an additional 756 shares in the last quarter. GAMMA Investing LLC raised its position in shares of Broadcom by 9.2% during the first quarter. GAMMA Investing LLC now owns 103,184 shares of the semiconductor manufacturer’s stock valued at $17,276,000 after buying an additional 8,672 shares during the last quarter. CNB Bank raised its position in shares of Broadcom by 14.0% during the first quarter. CNB Bank now owns 17,410 shares of the semiconductor manufacturer’s stock valued at $2,915,000 after buying an additional 2,137 shares during the last quarter. Finally, Falcon Wealth Planning raised its position in shares of Broadcom by 14.5% during the first quarter. Falcon Wealth Planning now owns 3,254 shares of the semiconductor manufacturer’s stock valued at $545,000 after buying an additional 411 shares during the last quarter. Hedge funds and other institutional investors own 76.43% of the company’s stock.

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.