Broadcom (NASDAQ:AVGO) Stock Price Up 1.6% – Should You Buy?

Broadcom Inc. (NASDAQ:AVGO)’s share price rose 1.6% during mid-day trading on Wednesday . The company traded as high as $424.17 and last traded at $417.76. Approximately 15,733,532 shares changed hands during trading, a decline of 36% from the average daily volume of 24,516,895 shares. The stock had previously closed at $411.07.

Trending Headlines about Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom and London Stock Exchange Group (LSEG) renewed their long-term technology partnership for five more years, with Broadcom’s VMware Cloud Foundation set to support LSEG’s private cloud and AI/cloud workloads. The deal reinforces recurring software demand and highlights Broadcom’s role in mission-critical enterprise infrastructure. Article Title
• Positive Sentiment: Applied Materials named Broadcom as an EPIC Innovation Partner to accelerate advanced packaging R&D for next-generation AI chips. That supports the market’s view that Broadcom remains a key beneficiary of AI infrastructure spending. Article Title
• Positive Sentiment: Several Wall Street notes continue to back Broadcom, with recent reports keeping the stock in the “buy” camp and price targets clustering well above current levels. That ongoing analyst support can help offset short-term volatility. Article Title
• Neutral Sentiment: A market screen highlighted Broadcom as a high-ROE “cash cow” during a broader tech selloff, which is supportive for the investment case but not a direct catalyst. Article Title
• Neutral Sentiment: Broader market headlines point to a big-tech pullback and higher yields, which may be creating some headwinds for AVGO despite its strong fundamentals and AI growth narrative. Article Title

Analysts Set New Price Targets

AVGO has been the subject of a number of recent research reports. Rosenblatt Securities restated a “buy” rating and set a $500.00 price target on shares of Broadcom in a research note on Tuesday, April 7th. Royal Bank Of Canada cut their price target on Broadcom from $370.00 to $340.00 and set a “sector perform” rating for the company in a research note on Monday, March 2nd. Citigroup restated a “buy” rating and set a $500.00 price target (up from $475.00) on shares of Broadcom in a research note on Tuesday, May 12th. Seaport Research Partners restated a “neutral” rating on shares of Broadcom in a research note on Wednesday, April 8th. Finally, Mizuho restated an “outperform” rating and set a $480.00 price target on shares of Broadcom in a research note on Thursday, April 16th. Two research analysts have rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat, Broadcom has an average rating of “Moderate Buy” and an average price target of $448.10.

Broadcom Trading Up 1.6%

The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.73 and a current ratio of 1.90. The stock has a market capitalization of $1.98 trillion, a PE ratio of 81.59, a PEG ratio of 0.87 and a beta of 1.43. The stock has a 50-day moving average price of $368.97 and a two-hundred day moving average price of $355.08.

Broadcom (NASDAQ:AVGO) last posted its quarterly earnings data on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share for the quarter, beating analysts’ consensus estimates of $2.03 by $0.02. Broadcom had a return on equity of 38.61% and a net margin of 36.57%.The firm had revenue of $19.31 billion for the quarter, compared to analysts’ expectations of $19.10 billion. During the same period in the previous year, the firm earned $1.60 EPS. The business’s quarterly revenue was up 29.5% on a year-over-year basis. As a group, equities analysts forecast that Broadcom Inc. will post 9.97 earnings per share for the current year.

Broadcom Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Investors of record on Monday, March 23rd were issued a $0.65 dividend. The ex-dividend date of this dividend was Monday, March 23rd. This represents a $2.60 dividend on an annualized basis and a yield of 0.6%. Broadcom’s payout ratio is currently 50.78%.

Insiders Place Their Bets

In related news, insider Charlie B. Kawwas sold 39,116 shares of the business’s stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $321.61, for a total value of $12,580,096.76. Following the transaction, the insider directly owned 74,626 shares of the company’s stock, valued at approximately $24,000,467.86. The trade was a 34.39% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider S. Ram Velaga sold 38,841 shares of the business’s stock in a transaction that occurred on 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 completion of the transaction, the insider directly owned 96,147 shares in the company, valued at approximately $30,920,875.20. This represents a 28.77% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 324,282 shares of company stock valued at $106,425,249 in the last 90 days. 1.90% of the stock is currently owned by company insiders.

Institutional Trading of Broadcom

Several hedge funds have recently modified their holdings of AVGO. Brighton Jones LLC raised its holdings in shares of Broadcom by 21.8% during the 4th quarter. Brighton Jones LLC now owns 29,683 shares of the semiconductor manufacturer’s stock worth $6,882,000 after acquiring an additional 5,322 shares in the last quarter. Revolve Wealth Partners LLC raised its holdings in Broadcom by 10.4% during the 4th quarter. Revolve Wealth Partners LLC now owns 7,997 shares of the semiconductor manufacturer’s stock valued at $1,854,000 after buying an additional 756 shares during the period. United Bank raised its holdings in Broadcom by 76.5% during the 1st quarter. United Bank now owns 2,339 shares of the semiconductor manufacturer’s stock valued at $392,000 after buying an additional 1,014 shares during the period. Sivia Capital Partners LLC raised its holdings in Broadcom by 10.1% during the 2nd quarter. Sivia Capital Partners LLC now owns 12,693 shares of the semiconductor manufacturer’s stock valued at $3,499,000 after buying an additional 1,160 shares during the period. Finally, Capital & Planning LLC raised its holdings in Broadcom by 10.5% during the 2nd quarter. Capital & Planning LLC now owns 3,983 shares of the semiconductor manufacturer’s stock valued at $1,098,000 after buying an additional 378 shares during the period. 76.43% of the stock is owned by hedge funds and other 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.