Broadcom (NASDAQ:AVGO) Trading Up 2.7% – Still a Buy?

Broadcom Inc. (NASDAQ:AVGO)’s share price shot up 2.7% during trading on Wednesday . The stock traded as high as $398.59 and last traded at $396.81. 16,421,825 shares traded hands during mid-day trading, a decline of 37% from the average session volume of 25,991,195 shares. The stock had previously closed at $386.50.

Key Headlines Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: TSMC’s planned 2027 price hikes and HPC surcharges may confirm Broadcom’s ability to protect margins and pass along higher costs in AI chips. TSMC’s Price Hikes Could Show Which AI Chip Stocks Have Real Pricing Power
• Positive Sentiment: Broadcom was singled out as a leader in the AI infrastructure boom because of strong AI bookings and customer commitments through 2028. CBRS vs. AVGO: Which Stock Leads the AI Infrastructure Boom?
• Positive Sentiment: Institutional ownership support may also be encouraging sentiment, with Alecta Pensionsförsäkring reportedly boosting its Broadcom stake by 99,200 shares. Alecta Pensionsforsakring boosts Broadcom stake by 99,200 shares
• Neutral Sentiment: Broadcom continues to be featured in articles about AI-trade momentum and semiconductor strength, which keeps attention on the stock but does not add a new fundamental catalyst. Semiconductor ETFs Surge Ahead of Intel Earnings
• Negative Sentiment: Some commentary suggests insider selling has been visible in Broadcom, which can create mild caution around the stock’s near-term trading. Insider Moves Are Sending Mixed Signals Across the Tech Sector

Wall Street Analyst Weigh In

Several analysts recently commented on AVGO shares. UBS Group set a $485.00 price target on shares of Broadcom and gave the company a “buy” rating in a research report on Thursday, June 4th. Seaport Research Partners restated a “neutral” rating on shares of Broadcom in a research report on Wednesday, April 8th. Mizuho boosted their price target on shares of Broadcom from $480.00 to $530.00 and gave the stock an “outperform” rating in a report on Thursday, June 4th. Royal Bank Of Canada boosted their target price on shares of Broadcom from $360.00 to $400.00 and gave the stock a “sector perform” rating in a research note on Thursday, June 4th. Finally, Weiss Ratings raised Broadcom from a “buy (b-)” rating to a “buy (b)” rating in a report on Wednesday, July 15th. One analyst has rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $493.24.

Broadcom Stock Down 1.1%

The business’s 50 day simple moving average is $398.28 and its 200 day simple moving average is $366.58. 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 $1.87 trillion, a PE ratio of 65.41, a P/E/G ratio of 0.76 and a beta of 1.45.

Broadcom (NASDAQ:AVGO) last posted its earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.40 by $0.04. The company had revenue of $22.19 billion during the quarter, compared to analysts’ expectations of $22.13 billion. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.The firm’s quarterly revenue was up 47.9% compared to the same quarter last year. During the same quarter last year, the firm earned $1.58 earnings per share. As a group, analysts anticipate that Broadcom Inc. will post 10.24 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 22nd were issued a dividend of $0.65 per share. This represents a $2.60 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date was Monday, June 22nd. Broadcom’s dividend payout ratio (DPR) is 43.33%.

Insider Buying and Selling at Broadcom

In other Broadcom news, Director Gayla J. Delly sold 1,890 shares of the firm’s stock in a transaction that occurred on Wednesday, July 8th. The shares were sold at an average price of $385.38, for a total value of $728,368.20. Following the completion of the transaction, the director owned 31,326 shares of the company’s stock, valued at $12,072,413.88. This trade represents a 5.69% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director Harry L. You bought 1,000 shares of the stock in a transaction that occurred on Thursday, June 11th. The shares were bought at an average cost of $373.57 per share, with a total value of $373,570.00. Following the completion of the purchase, the director directly owned 38,466 shares in the company, valued at $14,369,743.62. This represents a 2.67% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last ninety days, insiders have sold 61,644 shares of company stock worth $24,016,214. 1.90% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Broadcom

A number of institutional investors and hedge funds have recently added to or reduced their stakes in AVGO. Bartlett & CO. Wealth Management LLC lifted its stake in shares of Broadcom by 129.3% in the 1st quarter. Bartlett & CO. Wealth Management LLC now owns 110,048 shares of the semiconductor manufacturer’s stock worth $34,061,000 after acquiring an additional 62,050 shares during the period. Sovran Advisors LLC raised its holdings in Broadcom by 121.3% during the fourth quarter. Sovran Advisors LLC now owns 30,631 shares of the semiconductor manufacturer’s stock worth $10,507,000 after purchasing an additional 16,789 shares in the last quarter. Thurston Springer Miller Herd & Titak Inc. raised its holdings in Broadcom by 406.1% during the fourth quarter. Thurston Springer Miller Herd & Titak Inc. now owns 11,994 shares of the semiconductor manufacturer’s stock worth $4,151,000 after purchasing an additional 9,624 shares in the last quarter. Aspiriant LLC lifted its position in Broadcom by 18.5% in the fourth quarter. Aspiriant LLC now owns 12,016 shares of the semiconductor manufacturer’s stock worth $4,158,000 after purchasing an additional 1,872 shares during the period. Finally, World Investment Advisors increased its position in shares of Broadcom by 16.1% during the 4th quarter. World Investment Advisors now owns 177,710 shares of the semiconductor manufacturer’s stock valued at $61,505,000 after purchasing an additional 24,703 shares during the period. 76.43% of the stock is owned by institutional investors and hedge funds.

About Broadcom

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.