Broadcom (NASDAQ:AVGO) Shares Climb 4% – Time to Buy?

Broadcom Inc. (NASDAQ:AVGO) shares traded up 4% on Wednesday. The stock traded as high as $356.85 and last traded at $345.22. Approximately 32,295,740 shares changed hands during mid-day trading, an increase of 29% from the average daily volume of 25,079,223 shares. The stock had previously closed at $331.98.

More Broadcom News

These are some of the AVGO news items that stood out recently:

• Positive Sentiment: Anthropic’s reported cash position and revenue growth are presented as evidence it can support its large commitments tied to Broadcom, lending credibility to demand for Broadcom’s AI infrastructure. Anthropic’s S-1 Strengthens the Case for Broadcom’s AI Growth
• Positive Sentiment: Coverage also highlights that Amazon’s AI investment can benefit Broadcom as a chip supplier—and that Broadcom can sell to Amazon’s competitors as well. Prediction: 2 Stocks That Will Be Worth More Than Amazon 5 Years From Now
• Negative Sentiment: Bearish coverage flags credit risk around Broadcom’s AI/TPU business and warns that AI infrastructure growth is being financed with debt and stock sales. Heavy reliance on continued AI spending could leave the company exposed if demand slows. Broadcom: A Great TPU Business With a New Kind of Credit Risk Attached

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on AVGO shares. Raymond James Financial restated an “outperform” rating and issued a $475.00 price objective (up from $450.00) on shares of Broadcom in a report on Thursday, September 3rd. Oppenheimer started coverage on Broadcom in a report on Tuesday, October 27th. They set a “buy” rating for the company. Tigress Financial assumed coverage on shares of Broadcom in a research report on Thursday, October 22nd. They set a “buy” rating and a $600.00 target price for the company. Lake Street Capital upgraded shares of Broadcom to a “buy” rating in a report on Thursday, September 3rd. Finally, Weiss Ratings raised shares of Broadcom from a “buy (b-)” rating to a “buy (b)” rating in a research report on Thursday, October 8th. One research analyst has rated the stock with a Strong Buy rating, thirty-nine have assigned a Buy rating and five have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $530.52.

Broadcom Stock Performance

The stock has a fifty day simple moving average of $346.14 and a two-hundred day simple moving average of $366.16. The stock has a market cap of $1.65 trillion, a PE ratio of 44.09 and a beta of 1.49. The company has a debt-to-equity ratio of 0.57, a quick ratio of 2.29 and a current ratio of 2.50.

Broadcom (NASDAQ:AVGO) last released its quarterly earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.22 by $0.10. The firm had revenue of $29.59 billion for the quarter, compared to the consensus estimate of $29.24 billion. Broadcom had a net margin of 42.94% and a return on equity of 48.33%. The firm’s quarterly revenue was up 85.5% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.69 EPS. Equities analysts anticipate that Broadcom Inc. will post 10.37 EPS for the current fiscal year.

Broadcom Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Monday, September 21st were given a dividend of $0.65 per share. The ex-dividend date of this dividend was Monday, September 21st. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.8%. Broadcom’s dividend payout ratio (DPR) is presently 33.21%.

Hedge Funds Weigh In On Broadcom

Hedge funds have recently bought and sold shares of the company. Cornerstone Advisors LLC bought a new position in Broadcom during the 2nd quarter worth $92,522,000. GAMMA Investing LLC grew its position in Broadcom by 8.8% in the 3rd quarter. GAMMA Investing LLC now owns 164,015 shares of the semiconductor manufacturer’s stock valued at $55,889,000 after buying an additional 13,317 shares in the last quarter. ANB Bank acquired a new position in shares of Broadcom during the third quarter valued at approximately $1,181,000. Bank of America Corp DE increased its position in shares of Broadcom by 1.5% during the 1st quarter. Bank of America Corp DE now owns 58,737,097 shares of the semiconductor manufacturer’s stock valued at $18,179,719,000 after purchasing an additional 894,564 shares during the period. Finally, Clear Harbor Asset Management LLC acquired a new position in Broadcom during the second quarter worth about $3,302,000. 76.43% of the stock is currently owned by institutional investors and hedge funds.

About Broadcom

Broadcom Inc. is a global technology company that designs and supplies semiconductor products and infrastructure software. Its semiconductor portfolio includes chips and components used in networking, broadband communications, wireless connectivity, data storage, and industrial applications. The company serves businesses across a range of industries, including communications, enterprise technology, and consumer electronics. Broadcom also provides infrastructure software, including products for virtualization, cloud computing, cybersecurity, and enterprise operations.