Broadcom (NASDAQ:AVGO) Shares Up 3.2% on Analyst Upgrade

Broadcom Inc. (NASDAQ:AVGO)’s stock price was up 3.2% during mid-day trading on Friday after Truist Financial raised their price target on the stock from $500.00 to $510.00. Truist Financial currently has a buy rating on the stock. Broadcom traded as high as $343.45 and last traded at $340.36. Approximately 157,670,441 shares traded hands during trading, an increase of 487% from the average daily volume of 26,866,146 shares. The stock had previously closed at $329.88.

Other analysts also recently issued reports about the company. Wall Street Zen upgraded Broadcom from a “hold” rating to a “buy” rating in a research report on Saturday, December 13th. KeyCorp reaffirmed an “overweight” rating and issued a $500.00 price target (up previously from $460.00) on shares of Broadcom in a research note on Friday, December 12th. Wells Fargo & Company increased their price objective on shares of Broadcom from $255.00 to $345.00 and gave the stock an “equal weight” rating in a research note on Friday, September 5th. Weiss Ratings reissued a “buy (b-)” rating on shares of Broadcom in a report on Monday. Finally, Macquarie initiated coverage on shares of Broadcom in a research report on Monday, September 15th. They issued an “outperform” rating and a $420.00 target price for the company. Three analysts have rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and one has issued a Hold rating to the company. According to MarketBeat, Broadcom presently has a consensus rating of “Buy” and a consensus price target of $436.33.

Insiders Place Their Bets

In other news, CEO Hock E. Tan sold 100,000 shares of the company’s stock in a transaction on Tuesday, September 23rd. The shares were sold at an average price of $339.58, for a total transaction of $33,958,000.00. Following the completion of the transaction, the chief executive officer directly owned 725,638 shares in the company, valued at approximately $246,412,152.04. This represents a 12.11% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Charlie B. Kawwas sold 1,928 shares of the firm’s stock in a transaction on Wednesday, December 17th. The shares were sold at an average price of $327.80, for a total value of $631,998.40. Following the sale, the insider directly owned 23,582 shares in the company, valued at approximately $7,730,179.60. This trade represents a 7.56% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 863,577 shares of company stock worth $311,694,744 over the last 90 days. Insiders own 2.00% of the company’s stock.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Truist raised its price target to $510 and kept a buy stance, signaling big upside vs. current levels. AVGO: Broadcom price target raised by Truist
• Positive Sentiment: Company beat expectations and issued AI-related revenue commentary (large AI/XPU and networking opportunity), supporting a growth story tied to data-center demand. Broadcom soars past expectations with blockbuster results
• Positive Sentiment: Unusual options activity: traders bought ~323,615 call contracts, well above average, indicating speculative/hedged bullish bets on near-term upside.
• Positive Sentiment: Broadcom raised its quarterly dividend ~10% (new quarterly payment $0.65) — a sign of strong cash flow and shareholder returns. Broadcom stock just raised its dividend by 10%
• Neutral Sentiment: High-profile bullish coverage and commentary (Wall Street lists and media pieces) are amplifying interest but also raising expectations. Here’s why Wall Street is bullish on Broadcom stock (AVGO)
• Neutral Sentiment: Jim Cramer publicly said he isn’t very worried about Broadcom, which can calm retail sentiment but is not a fundamental driver. Jim Cramer says he is not that worried about Broadcom
• Negative Sentiment: Several insiders (including senior execs) have sold shares in recent filings — a potential overhang for sentiment even if sales may be for diversification/liquidity. Charlie Kawwas Sells 1,235 Shares of Broadcom
• Negative Sentiment: Sharp recent sell-off (~20% from pre-earnings levels) has created volatility and forced short-term selling pressure despite analysts raising targets. Broadcom Stock Crashes 20%—But Wall Street Sees It Soaring to $500

Institutional Trading of Broadcom

A number of hedge funds have recently made changes to their positions in the company. Arthur M. Cohen & Associates LLC raised its stake in shares of Broadcom by 0.6% during the third quarter. Arthur M. Cohen & Associates LLC now owns 4,781 shares of the semiconductor manufacturer’s stock valued at $1,577,000 after acquiring an additional 30 shares during the last quarter. Jackson Hole Capital Partners LLC increased its holdings in Broadcom by 1.4% in the third quarter. Jackson Hole Capital Partners LLC now owns 2,170 shares of the semiconductor manufacturer’s stock valued at $716,000 after purchasing an additional 30 shares during the period. Private Wealth Partners LLC increased its holdings in Broadcom by 0.7% in the third quarter. Private Wealth Partners LLC now owns 4,273 shares of the semiconductor manufacturer’s stock valued at $1,410,000 after purchasing an additional 30 shares during the period. Planning Alternatives Ltd. ADV raised its position in Broadcom by 1.4% during the 3rd quarter. Planning Alternatives Ltd. ADV now owns 2,168 shares of the semiconductor manufacturer’s stock worth $715,000 after purchasing an additional 30 shares during the last quarter. Finally, Bell Investment Advisors Inc lifted its holdings in Broadcom by 1.9% during the 3rd quarter. Bell Investment Advisors Inc now owns 1,638 shares of the semiconductor manufacturer’s stock worth $540,000 after buying an additional 30 shares during the period. 76.43% of the stock is owned by institutional investors and hedge funds.

Broadcom Price Performance

The company has a fifty day simple moving average of $362.98 and a 200 day simple moving average of $320.66. The stock has a market capitalization of $1.61 trillion, a price-to-earnings ratio of 71.50, a P/E/G ratio of 1.13 and a beta of 1.19. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.58 and a current ratio of 1.71.

Broadcom (NASDAQ:AVGO) last issued its quarterly earnings data on Thursday, December 11th. The semiconductor manufacturer reported $1.95 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.87 by $0.08. Broadcom had a return on equity of 37.45% and a net margin of 36.20%.The company had revenue of $18.02 billion during the quarter, compared to the consensus estimate of $17.46 billion. During the same period last year, the company earned $1.42 earnings per share. The firm’s revenue was up 28.2% compared to the same quarter last year. Equities research analysts forecast that Broadcom Inc. will post 5.38 EPS for the current fiscal year.

Broadcom Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, December 31st. Stockholders of record on Monday, December 22nd will be given a $0.65 dividend. This is an increase from Broadcom’s previous quarterly dividend of $0.59. The ex-dividend date is Monday, December 22nd. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.8%. Broadcom’s dividend payout ratio is presently 49.58%.

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.