Broadcom (NASDAQ:AVGO) Reaches New 12-Month High After Strong Earnings

Broadcom Inc. (NASDAQ:AVGO)’s stock price hit a new 52-week high during mid-day trading on Friday after the company announced better than expected quarterly earnings. The company traded as high as $356.34 and last traded at $338.15, with a volume of 26229748 shares traded. The stock had previously closed at $306.10.

The semiconductor manufacturer reported $1.69 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.66 by $0.03. Broadcom had a return on equity of 37.17% and a net margin of 31.59%.The firm had revenue of $15.95 billion during the quarter, compared to analyst estimates of $15.82 billion. During the same quarter in the previous year, the firm earned $1.24 EPS. Broadcom’s quarterly revenue was up 22.0% compared to the same quarter last year. Broadcom has set its Q4 2025 guidance at EPS.

Broadcom Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 30th. Shareholders of record on Monday, September 22nd will be given a $0.59 dividend. This represents a $2.36 annualized dividend and a yield of 0.7%. The ex-dividend date of this dividend is Monday, September 22nd. Broadcom’s dividend payout ratio (DPR) is presently 88.39%.

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on AVGO. Cowen reaffirmed a “buy” rating on shares of Broadcom in a research report on Friday, June 6th. Hsbc Global Res raised Broadcom from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, June 24th. Arete Research raised Broadcom to a “strong-buy” rating in a report on Monday, July 28th. Benchmark increased their price target on Broadcom from $315.00 to $385.00 and gave the company a “buy” rating in a report on Friday. Finally, Wells Fargo & Company increased their price target on Broadcom from $255.00 to $345.00 and gave the company an “equal weight” rating in a report on Friday. Three research analysts have rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Buy” and a consensus target price of $351.00.

Insider Buying and Selling at Broadcom

In related news, Director Henry Samueli sold 473,898 shares of the firm’s stock in a transaction dated Wednesday, June 25th. The stock was sold at an average price of $265.33, for a total transaction of $125,739,356.34. Following the sale, the director owned 38,188,575 shares of the company’s stock, valued at $10,132,574,604.75. This trade represents a 1.23% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Charlie B. Kawwas sold 10,000 shares of the firm’s stock in a transaction dated Wednesday, June 11th. The shares were sold at an average price of $252.88, for a total value of $2,528,800.00. Following the sale, the insider directly owned 789,784 shares in the company, valued at approximately $199,720,577.92. The trade was a 1.25% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 830,516 shares of company stock worth $217,286,457. Insiders own 2.00% of the company’s stock.

Institutional Investors Weigh In On Broadcom

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in AVGO. Norges Bank purchased a new stake in shares of Broadcom in the 2nd quarter valued at $18,579,549,000. Nuveen LLC purchased a new stake in shares of Broadcom in the 1st quarter valued at $6,649,117,000. Price T Rowe Associates Inc. MD raised its holdings in shares of Broadcom by 37.8% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 65,509,579 shares of the semiconductor manufacturer’s stock valued at $10,968,270,000 after buying an additional 17,985,046 shares during the period. GAMMA Investing LLC raised its holdings in shares of Broadcom by 18,179.3% in the 1st quarter. GAMMA Investing LLC now owns 17,276,164 shares of the semiconductor manufacturer’s stock valued at $2,892,548,000 after buying an additional 17,181,652 shares during the period. Finally, Vanguard Group Inc. raised its holdings in shares of Broadcom by 1.3% in the 2nd quarter. Vanguard Group Inc. now owns 483,442,939 shares of the semiconductor manufacturer’s stock valued at $133,261,046,000 after buying an additional 6,222,802 shares during the period. 76.43% of the stock is currently owned by hedge funds and other institutional investors.

Broadcom Price Performance

The company has a current ratio of 1.08, a quick ratio of 0.98 and a debt-to-equity ratio of 0.89. The stock has a market cap of $1.58 trillion, a PE ratio of 85.43, a P/E/G ratio of 2.17 and a beta of 1.16. The company has a fifty day moving average of $292.09 and a 200-day moving average of $237.25.

About Broadcom

Broadcom Inc designs, develops, and supplies various semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. The company operates in two segments, Semiconductor Solutions and Infrastructure Software.