Traders Purchase High Volume of Call Options on Broadcom (NASDAQ:AVGO)

Broadcom Inc. (NASDAQ:AVGO) was the target of unusually large options trading activity on Friday. Investors bought 373,266 call options on the company. This is an increase of approximately 26% compared to the typical daily volume of 297,336 call options.

Broadcom News Summary

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: AI growth remains exceptionally strong: Fiscal third-quarter revenue rose 86% year over year to $29.6 billion, while non-GAAP EPS of $3.32 exceeded the $3.22 consensus estimate. AI semiconductor revenue surged 221% to $16.7 billion, underscoring robust demand for Broadcom’s custom accelerators and networking products. AVGO Q3 Earnings Beat Estimates, Revenues Rise on Strong AI Demand
• Positive Sentiment: Long-term AI expectations improved: Broadcom raised its fiscal 2027 AI semiconductor revenue outlook to approximately $115 billion and projected $230 billion in fiscal 2028. Analysts and investors view customers such as Alphabet, Anthropic and OpenAI as potential sources of substantial future demand. Several firms maintained or raised bullish price targets, including Truist, KeyBanc, Cantor Fitzgerald and Macquarie. The Path to $230 Billion: Broadcom Outlines the Next Phase of Its AI Growth Story
• Neutral Sentiment: Supply constraints are limiting reported growth: Management indicated that demand for AI infrastructure may be significantly higher than current shipments, but land, power, chips and substrates are delaying data-center deployments. This supports future demand but may constrain near-term revenue recognition and margins. Broadcom CEO Discusses AI Demand and Data-Center Constraints
• Negative Sentiment: Fourth-quarter guidance missed expectations: Broadcom forecast approximately $34.8 billion in fiscal fourth-quarter revenue, below Wall Street’s roughly $35.0 billion estimate. The modest outlook, combined with concerns about customer concentration, competition from Marvell and potential margin pressure, overshadowed the earnings beat. High expectations and a premium valuation amplified the sell-the-news reaction. Broadcom Forecasts Quarterly Revenue Below Estimates

Insider Buying and Selling at Broadcom

In related news, Director Harry You purchased 1,000 shares of Broadcom stock in a transaction that occurred on Thursday, June 11th. The stock was purchased at an average cost of $373.57 per share, with a total value of $373,570.00. Following the completion of the transaction, the director owned 38,466 shares of the company’s stock, valued at approximately $14,369,743.62. This trade represents a 2.67% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Mark Brazeal sold 25,000 shares of the firm’s stock in a transaction that occurred on Friday, July 10th. The shares were sold at an average price of $401.33, for a total value of $10,033,250.00. Following the completion of the transaction, the insider owned 194,989 shares of the company’s stock, valued at approximately $78,254,935.37. This represents a 11.36% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 61,644 shares of company stock worth $24,016,214. Company insiders own 1.90% of the company’s stock.

Institutional Investors Weigh In On Broadcom

A number of large investors have recently bought and sold shares of the company. Fullerton Advisors LLC lifted its holdings in shares of Broadcom by 1.3% during the 1st quarter. Fullerton Advisors LLC now owns 1,989 shares of the semiconductor manufacturer’s stock worth $616,000 after acquiring an additional 25 shares during the period. NORTHSTAR ASSET MANAGEMENT Co increased its stake in Broadcom by 0.5% in the first quarter. NORTHSTAR ASSET MANAGEMENT Co now owns 5,350 shares of the semiconductor manufacturer’s stock valued at $1,656,000 after acquiring an additional 25 shares during the last quarter. RFG Holdings Inc. raised its position in Broadcom by 0.3% during the first quarter. RFG Holdings Inc. now owns 8,499 shares of the semiconductor manufacturer’s stock valued at $2,631,000 after purchasing an additional 26 shares in the last quarter. Yukon Wealth Management Inc. lifted its stake in Broadcom by 1.1% during the first quarter. Yukon Wealth Management Inc. now owns 2,501 shares of the semiconductor manufacturer’s stock worth $774,000 after purchasing an additional 26 shares during the last quarter. Finally, NerdWallet Wealth Partners LLC lifted its stake in Broadcom by 2.6% during the second 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 last quarter. 76.43% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several equities analysts recently weighed in on AVGO shares. Truist Financial decreased their target price on shares of Broadcom from $550.00 to $520.00 and set a “buy” rating for the company in a research note on Thursday. Jefferies Financial Group assumed coverage on shares of Broadcom in a research note on Thursday. They issued a “buy” rating for the company. Dbs Bank raised shares of Broadcom to a “moderate buy” rating in a research report on Thursday, June 18th. Weiss Ratings lowered shares of Broadcom from a “buy (b)” rating to a “buy (b-)” rating in a research note on Thursday, July 30th. Finally, Royal Bank Of Canada began coverage on shares of Broadcom in a report on Thursday. They issued an “outperform” rating on the stock. Thirty-one analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat, Broadcom presently has a consensus rating of “Moderate Buy” and an average target price of $500.60.

Broadcom Stock Performance

Broadcom stock traded up $0.74 during mid-day trading on Friday, hitting $357.90. 32,317,609 shares of the company’s stock traded hands, compared to its average volume of 25,200,689. The firm has a 50 day simple moving average of $383.71 and a two-hundred day simple moving average of $377.36. Broadcom has a fifty-two week low of $289.96 and a fifty-two week high of $495.00. The stock has a market cap of $1.70 trillion, a price-to-earnings ratio of 45.71, a P/E/G ratio of 0.70 and a beta of 1.44. The company has a debt-to-equity ratio of 0.71, a current ratio of 2.24 and a quick ratio of 2.01.

Broadcom (NASDAQ:AVGO) last released its quarterly earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share for the quarter, beating the consensus estimate of $3.22 by $0.10. The firm had revenue of $29.59 billion for the quarter, compared to analysts’ expectations of $29.24 billion. Broadcom had a net margin of 42.94% and a return on equity of 50.76%. The business’s revenue was up 85.5% on a year-over-year basis. During the same period in the prior year, the firm earned $1.69 EPS. On average, research analysts expect that Broadcom will post 10.24 EPS for the current fiscal year.

Broadcom Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Monday, September 21st will be issued a dividend of $0.65 per share. This represents a $2.60 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend is Monday, September 21st. Broadcom’s dividend payout ratio is 43.33%.

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.