Broadcom (NASDAQ:AVGO) Shares Up 3.6% – What’s Next?

Broadcom Inc. (NASDAQ:AVGO) traded up 3.6% on Thursday . The stock traded as high as $389.50 and last traded at $385.57. 33,778,862 shares traded hands during mid-day trading, an increase of 30% from the average session volume of 25,964,875 shares. The stock had previously closed at $372.10.

Trending Headlines about Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Wall Street analysts and banks remain upbeat, with several reports raising price targets and earnings estimates for Broadcom after the selloff, suggesting the post-earnings pullback may have created a buying opportunity. Article Title
• Positive Sentiment: Broadcom continues to show strong AI demand, with commentary highlighting record revenue growth, AI semiconductor revenue surging, and a very large AI booking pipeline that supports the long-term growth story. Article Title
• Positive Sentiment: New coverage frames Broadcom as a leading AI stock and a top holding for major investors, reinforcing confidence in its role in custom AI chips and infrastructure spending. Article Title
• Positive Sentiment: Broadcom also announced cash tender offers for some outstanding debt securities, which may help optimize its balance sheet and lower financing risk over time. Article Title
• Neutral Sentiment: Some commentary suggests the stock’s recent drop reflects broader AI-stock de-risking rather than a company-specific collapse, as investors reassess what “good” earnings deserve in an expensive AI trade. Article Title
• Neutral Sentiment: Bearish takes continue to focus on Broadcom’s premium valuation and concerns that management’s AI messaging may be too cautious or too narrow, especially after the CEO said the company will focus only on chips. Article Title
• Negative Sentiment: Multiple reports say Broadcom’s shares have fallen sharply since earnings because the market was disappointed by the AI revenue guide and is questioning whether the stock’s premium valuation is still justified. Article Title

Analysts Set New Price Targets

Several equities research analysts recently weighed in on AVGO shares. KeyCorp reaffirmed an “overweight” rating and set a $575.00 price objective (up from $500.00) on shares of Broadcom in a research report on Thursday, June 4th. Bank of America raised their target price on shares of Broadcom from $450.00 to $530.00 and gave the company a “buy” rating in a report on Thursday, June 4th. Citigroup restated a “buy” rating on shares of Broadcom in a research report on Thursday, June 4th. Oppenheimer reissued an “outperform” rating and issued a $535.00 price objective (up from $450.00) on shares of Broadcom in a research note on Thursday, June 4th. Finally, Erste Group Bank upgraded shares of Broadcom from a “hold” rating to a “buy” rating in a research report on Friday, June 5th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $490.13.

Broadcom Stock Performance

The company has a fifty day moving average price of $401.36 and a two-hundred day moving average price of $362.87. The company has a debt-to-equity ratio of 0.71, a current ratio of 2.24 and a quick ratio of 2.01. The company has a market capitalization of $1.83 trillion, a P/E ratio of 64.26, a PEG ratio of 0.71 and a beta of 1.41.

Broadcom (NASDAQ:AVGO) last issued 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 net margin of 38.85% and a return on equity of 41.61%. The business had revenue of $22.19 billion during the quarter, compared to analyst estimates of $22.13 billion. During the same quarter last year, the business earned $1.58 EPS. The firm’s quarterly revenue was up 47.9% on a year-over-year basis. Equities analysts forecast that Broadcom Inc. will post 9.97 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Monday, June 22nd will be paid a dividend of $0.65 per share. The ex-dividend date of this dividend is Monday, June 22nd. This represents a $2.60 annualized dividend and a dividend yield of 0.7%. Broadcom’s dividend payout ratio (DPR) is presently 43.33%.

Insider Buying and Selling at Broadcom

In related news, insider Charlie B. Kawwas sold 39,116 shares of the firm’s stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $321.61, for a total transaction of $12,580,096.76. Following the completion of the transaction, the insider directly owned 74,626 shares of the company’s stock, valued at $24,000,467.86. This trade represents a 34.39% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider S. Ram Velaga sold 38,841 shares of Broadcom stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $321.60, for a total value of $12,491,265.60. Following the transaction, the insider directly owned 96,147 shares in the company, valued at $30,920,875.20. The trade was a 28.77% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 324,282 shares of company stock worth $106,425,249 in the last three months. 1.90% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Broadcom

A number of hedge funds have recently made changes to their positions in the stock. Fullerton Advisors LLC boosted its stake in shares of Broadcom by 1.3% in the 1st quarter. Fullerton Advisors LLC now owns 1,989 shares of the semiconductor manufacturer’s stock valued at $616,000 after purchasing an additional 25 shares during the last quarter. NORTHSTAR ASSET MANAGEMENT Co raised its stake in Broadcom by 0.5% during the first quarter. NORTHSTAR ASSET MANAGEMENT Co now owns 5,350 shares of the semiconductor manufacturer’s stock worth $1,656,000 after buying an additional 25 shares during the last quarter. RFG Holdings Inc. lifted its holdings in Broadcom by 0.3% in the first quarter. RFG Holdings Inc. now owns 8,499 shares of the semiconductor manufacturer’s stock valued at $2,631,000 after buying an additional 26 shares during the period. Yukon Wealth Management Inc. lifted its holdings in 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 buying an additional 26 shares during the period. Finally, Capital Planning LLC boosted its position in Broadcom by 0.7% during the first quarter. Capital Planning LLC now owns 4,044 shares of the semiconductor manufacturer’s stock valued at $1,252,000 after acquiring an additional 28 shares during the last quarter. 76.43% of the stock is currently owned by 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.