Broadcom (NASDAQ:AVGO) Shares Up 3.7% – What’s Next?

Broadcom Inc. (NASDAQ:AVGO) shares traded up 3.7% on Monday . The company traded as high as $383.16 and last traded at $373.90. Approximately 24,023,065 shares changed hands during mid-day trading, a decline of 9% from the average session volume of 26,467,809 shares. The stock had previously closed at $360.45.

Broadcom News Roundup

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom announced an expanded partnership with Apple to develop and supply custom chips through 2031, reinforcing a key long-term revenue relationship and improving confidence in its AI and custom silicon growth. Reuters article
• Positive Sentiment: Market commentary says the Apple deal is lifting Broadcom and the broader chip sector, as traders rotate into AI and semiconductor names. FXEmpire article
• Positive Sentiment: Analysts and industry coverage continue to highlight Broadcom’s AI position, including its custom AI silicon business and Edge AI portfolio, which supports the stock’s long-term growth story. Yahoo Finance article
• Neutral Sentiment: Broadcom remains a widely watched AI beneficiary, with recent coverage noting it is among BlackRock’s important AI stocks, adding to sentiment but not changing the core business outlook. Yahoo Finance article
• Negative Sentiment: Some recent analysis noted AVGO had fallen over the prior month due to softer near-term guidance and no major lift to the longer-term AI outlook, which may temper enthusiasm if execution slows. Zacks article

Analyst Ratings Changes

Several equities research analysts have issued reports on the company. Oppenheimer reaffirmed an “outperform” rating and set a $535.00 price target (up from $450.00) on shares of Broadcom in a research note on Thursday, June 4th. Erste Group Bank raised Broadcom from a “hold” rating to a “buy” rating in a report on Friday, June 5th. JPMorgan Chase & Co. boosted their target price on Broadcom from $500.00 to $580.00 and gave the stock an “overweight” rating in a research report on Thursday, June 4th. The Goldman Sachs Group reiterated a “buy” rating and set a $525.00 price target on shares of Broadcom in a research report on Thursday, June 4th. Finally, Dbs Bank raised shares of Broadcom to a “moderate buy” rating in a research note on Thursday, June 18th. One research analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, Broadcom currently has a consensus rating of “Moderate Buy” and an average price target of $493.24.

Broadcom Stock Up 3.7%

The company has a market capitalization of $1.78 trillion, a P/E ratio of 62.32, a price-to-earnings-growth ratio of 0.63 and a beta of 1.45. The company has a 50-day moving average of $407.92 and a two-hundred day moving average of $362.49. The company has a quick ratio of 2.01, a current ratio of 2.24 and a debt-to-equity ratio of 0.71.

Broadcom (NASDAQ:AVGO) last announced its quarterly earnings data on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.40 by $0.04. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.The business had revenue of $22.19 billion during the quarter, compared to analysts’ expectations of $22.13 billion. During the same quarter in the previous year, the business earned $1.58 earnings per share. The firm’s quarterly revenue was up 47.9% compared to the same quarter last year. On average, research analysts predict that Broadcom Inc. will post 10.24 EPS for the current year.

Broadcom Dividend Announcement

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

Insider Activity at Broadcom

In other Broadcom news, Director Gayla J. Delly sold 1,000 shares of the business’s stock in a transaction dated Thursday, April 9th. The stock was sold at an average price of $358.31, for a total transaction of $358,310.00. Following the completion of the sale, the director directly owned 32,352 shares in the company, valued at $11,592,045.12. The trade was a 3.00% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider S. Ram Velaga sold 8,000 shares of the firm’s stock in a transaction on Friday, April 10th. The stock was sold at an average price of $370.52, for a total value of $2,964,160.00. Following the completion of the transaction, the insider directly owned 57,932 shares in the company, valued at approximately $21,464,964.64. This represents a 12.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 60,987 shares of company stock valued at $21,899,980 in the last 90 days. 1.90% of the stock is owned by company insiders.

Institutional Investors Weigh In On Broadcom

A number of hedge funds have recently made changes to their positions in the company. ROSS JOHNSON & Associates LLC grew its holdings in shares of Broadcom by 1,320.0% in the fourth 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 in the last quarter. SWAN Capital LLC lifted 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 purchasing an additional 55 shares during the last quarter. Networth Advisors LLC lifted 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 purchasing an additional 71 shares during the last quarter. Miller Global Investments LLC purchased a new position in shares of Broadcom in the 4th quarter worth $31,000. Finally, Nvest Wealth Strategies Inc. bought a new stake in shares of Broadcom in the 4th quarter worth about $33,000. 76.43% of the stock is currently owned by hedge funds and other 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.