Broadcom (NASDAQ:AVGO) Stock Price Up 8.8% – Here’s What Happened

Broadcom Inc. (NASDAQ:AVGO) shot up 8.8% during trading on Monday. The company traded as high as $323.05 and last traded at $319.48. Approximately 36,508,635 shares changed hands during trading, an increase of 46% from the average session volume of 25,028,682 shares. The stock had previously closed at $293.69.

More Broadcom News

Investors following AVGO have been watching these news items:

• Positive Sentiment: Coverage says Google’s latest Tensor Processing Units reinforce Broadcom’s important role in the custom-AI-chip ecosystem, supporting expectations for ongoing demand from large technology customers. Google’s latest TPUs show Broadcom remains central: JPM
• Negative Sentiment: Other coverage warns that AI infrastructure expansion is increasingly funded with debt and raises concerns about credit risk tied to Broadcom’s AI-related business. If financing becomes harder or customer spending slows, expectations for future growth could be pressured. Broadcom: A Great TPU Business With A New Kind Of Credit Risk Attached How Exposed Is Broadcom Stock To AI Slowdown?
• Neutral Sentiment: Investors face a mixed setup: positive AI demand indicators are competing with questions about valuation and whether the company’s growth can meet elevated expectations. Broadcom Has Some Hidden Risks

Analysts Set New Price Targets

AVGO has been the subject of a number of analyst reports. Tigress Financial assumed coverage on shares of Broadcom in a research report on Thursday, October 22nd. They issued a “buy” rating and a $600.00 price objective for the company. BMO Capital Markets increased their target price on shares of Broadcom from $455.00 to $575.00 and gave the stock an “outperform” rating in a report on Thursday, September 3rd. Weiss Ratings upgraded shares of Broadcom from a “buy (b-)” rating to a “buy (b)” rating in a report on Thursday, October 8th. TD Cowen reiterated a “buy” rating and set a $475.00 target price (down from $500.00) on shares of Broadcom in a report on Thursday, September 3rd. Finally, Bank of America decreased their target price on Broadcom from $530.00 to $460.00 and set a “buy” rating for the company in a research report on Thursday, September 3rd. One equities research analyst has rated the stock with a Strong Buy rating, thirty-nine have given a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $530.52.

Broadcom Trading Up 4.0%

The firm has a market capitalization of $1.65 trillion, a P/E ratio of 44.09 and a beta of 1.49. The company has a current ratio of 2.50, a quick ratio of 2.29 and a debt-to-equity ratio of 0.57. The stock has a 50 day simple moving average of $346.14 and a 200-day simple moving average of $366.16.

Broadcom (NASDAQ:AVGO) last announced its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 EPS for the quarter, beating analysts’ consensus estimates of $3.22 by $0.10. Broadcom had a net margin of 42.94% and a return on equity of 48.33%. The business had revenue of $29.59 billion during the quarter, compared to analysts’ expectations of $29.24 billion. During the same period in the prior year, the company earned $1.69 earnings per share. The firm’s revenue was up 85.5% on a year-over-year basis. On average, equities research analysts forecast that Broadcom Inc. will post 10.37 EPS for the current fiscal year.

Broadcom Announces Dividend

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

Institutional Investors Weigh In On Broadcom

Hedge funds and other institutional investors have recently made changes to their positions in the company. Yukon Wealth Management Inc. raised its holdings in shares of Broadcom by 1.1% in the first quarter. Yukon Wealth Management Inc. now owns 2,501 shares of the semiconductor manufacturer’s stock valued at $774,000 after acquiring an additional 26 shares in the last quarter. NerdWallet Wealth Partners LLC lifted its position in shares of Broadcom by 2.6% in the 2nd quarter. NerdWallet Wealth Partners LLC now owns 1,057 shares of the semiconductor manufacturer’s stock worth $399,000 after purchasing an additional 27 shares during the period. Veery Capital LLC boosted its stake in shares of Broadcom by 1.4% during the second quarter. Veery Capital LLC now owns 1,900 shares of the semiconductor manufacturer’s stock valued at $718,000 after purchasing an additional 27 shares in the last quarter. Ridgeline Wealth Planning LLC increased its holdings in Broadcom by 2.1% during the second quarter. Ridgeline Wealth Planning LLC now owns 1,302 shares of the semiconductor manufacturer’s stock valued at $492,000 after buying an additional 27 shares during the period. Finally, Meridian Management Co. increased its holdings in Broadcom by 0.3% during the first quarter. Meridian Management Co. now owns 9,425 shares of the semiconductor manufacturer’s stock valued at $2,917,000 after buying an additional 28 shares during the period. Hedge funds and other institutional investors own 76.43% of the company’s stock.

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.