Erste Group Bank Increases Earnings Estimates for Broadcom

Broadcom Inc. (NASDAQ:AVGO) – Equities research analysts at Erste Group Bank raised their FY2027 earnings estimates for Broadcom in a research report issued on Wednesday, August 5th. Erste Group Bank analyst H. Engel now forecasts that the semiconductor manufacturer will post earnings of $17.72 per share for the year, up from their prior estimate of $17.60. Erste Group Bank currently has a “Hold” rating on the stock. The consensus estimate for Broadcom’s current full-year earnings is $10.24 per share.

Broadcom (NASDAQ:AVGO) last released its earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share for the quarter, topping the consensus estimate of $2.40 by $0.04. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The company had revenue of $22.19 billion during the quarter, compared to the consensus estimate of $22.13 billion. During the same quarter in the previous year, the firm earned $1.58 EPS. The company’s revenue was up 47.9% on a year-over-year basis.

Several other brokerages have also commented on AVGO. Evercore reiterated an “outperform” rating and issued a $582.00 target price on shares of Broadcom in a research report on Tuesday, May 19th. Citigroup restated a “buy” rating on shares of Broadcom in a research note on Thursday, June 4th. Oppenheimer reiterated an “outperform” rating and set a $535.00 target price (up from $450.00) on shares of Broadcom in a research note on Thursday, June 4th. KeyCorp reissued an “overweight” rating and set a $575.00 target price (up from $500.00) on shares of Broadcom in a report on Thursday, June 4th. Finally, The Goldman Sachs Group restated a “buy” rating on shares of Broadcom in a research report on Monday, August 3rd. Twenty-eight equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $493.24.

Broadcom Trading Down 1.3%

Shares of NASDAQ AVGO opened at $422.40 on Monday. The company has a quick ratio of 2.01, a current ratio of 2.24 and a debt-to-equity ratio of 0.71. The stock’s 50 day moving average price is $392.24 and its two-hundred day moving average price is $371.22. Broadcom has a 52-week low of $281.87 and a 52-week high of $495.00. The stock has a market capitalization of $2.01 trillion, a P/E ratio of 70.40, a PEG ratio of 0.82 and a beta of 1.45.

Institutional Trading of Broadcom

Hedge funds have recently added to or reduced their stakes in the business. ROSS JOHNSON & Associates LLC boosted 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 acquiring an additional 66 shares in the last quarter. SWAN Capital LLC raised its holdings in Broadcom by 261.9% during the fourth quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer’s stock worth $26,000 after purchasing an additional 55 shares in the last quarter. Networth Advisors LLC lifted its position in 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 purchasing an additional 71 shares during the period. Nvest Wealth Strategies Inc. acquired a new position in Broadcom during the fourth quarter worth about $33,000. Finally, Family CFO Inc acquired a new position in Broadcom during the fourth quarter worth about $35,000. Institutional investors own 76.43% of the company’s stock.

Insider Buying and Selling

In other news, Director Gayla J. Delly sold 1,890 shares of the business’s stock in a transaction on Wednesday, July 8th. The shares were sold at an average price of $385.38, for a total transaction of $728,368.20. Following the completion of the transaction, the director owned 31,326 shares of the company’s stock, valued at approximately $12,072,413.88. The trade was a 5.69% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, insider Mark David Brazeal sold 25,000 shares of the company’s stock in a transaction dated 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 transaction, the insider owned 194,989 shares of the company’s stock, valued at $78,254,935.37. This represents a 11.36% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 61,644 shares of company stock valued at $24,016,214. 1.90% of the stock is owned by corporate insiders.

Broadcom Dividend Announcement

The business 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. This represents a $2.60 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date was Monday, June 22nd. Broadcom’s dividend payout ratio (DPR) is presently 43.33%.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s custom ASIC positioning remains a key bullish factor. AI semiconductor revenue has more than doubled year over year, with further substantial growth expected, helping the stock outperform some large semiconductor peers. Top Semiconductor Stock Outpacing Nvidia With a 36% Gain Over 6 Months
• Positive Sentiment: Investors continue to favor Broadcom’s combination of cloud-scale demand, enterprise adoption, booked AI growth and strong cash generation. Broadcom’s Brilliant Positioning is Why I Am Loading Up Over and Over
• Positive Sentiment: Broadcom expanded security capabilities in its VMware Cloud Foundation offering, including faster vDefend deployment, on-premises malware sandboxing and API protection. The additions support its enterprise software strategy, although competition from Nutanix and IBM remains intense. Broadcom Boosts VCF Security
• Positive Sentiment: Broker coverage remains constructive: analysts maintain a consensus “Moderate Buy” rating, while Erste Group raised its fiscal 2027 EPS estimate. Broadcom Given Consensus Rating of Moderate Buy
• Neutral Sentiment: The immediate move appears largely technical, with Broadcom slipping after its extended winning streak rather than following a reported earnings or guidance disappointment. Broadcom Slips After Seven-Session Advance
• Negative Sentiment: A potential FCC ban on Chinese optical transceivers could disrupt data-center supply chains and create uncertainty for AI infrastructure suppliers. AI Cold War Catches Light

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.