Broadcom Inc. (NASDAQ:AVGO) Stock Has Average Target Price of $527.20

by · The Cerbat Gem

Broadcom Inc. (NASDAQ:AVGO – Get Free Report) has earned a consensus recommendation of “Moderate Buy” from the forty-one research firms that are presently covering the company, MarketBeat.com reports. Three research analysts have rated the stock with a hold rating, thirty-seven have given a buy rating and one has assigned a strong buy rating to the company. The average twelve-month price objective among brokers that have issued ratings on the stock in the last year is $527.20.

A number of brokerages have commented on AVGO. Piper Sandler began coverage on Broadcom in a research report on Wednesday, September 9th. They set an “overweight” rating and a $460.00 price objective for the company. Arete Research increased their price objective on Broadcom from $488.00 to $530.00 and gave the stock a “buy” rating in a report on Tuesday, July 21st. The Goldman Sachs Group lifted their price target on Broadcom from $525.00 to $540.00 and gave the company a “buy” rating in a report on Thursday, September 3rd. BNP Paribas Exane increased their price objective on Broadcom from $675.00 to $715.00 and gave the stock an “outperform” rating in a report on Friday, September 4th. Finally, Dbs Bank raised shares of Broadcom to a “moderate buy” rating in a research report on Thursday, June 18th.

Get Our Latest Stock Analysis on AVGO

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

  • Positive Sentiment: Broadcom and its banking syndicate are reportedly preparing as much as $60 billion in financing for Anthropic and other AI companies. The package could include $42 billion of senior-secured debt and an additional $18 billion junior tranche, potentially helping customers fund large-scale chip and infrastructure deployments. Why Broadcom stock is gaining today?
  • Positive Sentiment: Anthropic’s IPO filing reportedly shows that Broadcom could lend the AI company up to $42 billion to lease Broadcom chips. The arrangement strengthens Broadcom’s relationship with a potentially major customer and could support future AI-chip revenue, although some financing may be convertible into Anthropic shares. Broadcom to lend Anthropic up to $42 billion to lease its chips
  • Positive Sentiment: Analysts and commentators remain constructive on Broadcom’s long-term outlook, citing a reported 221% increase in AI revenue, chip relationships with Google, Meta and OpenAI, and repeated earnings beats. UBS also reportedly presented a bullish view after discussions with Broadcom’s CEO. Broadcom, Marvell, and SanDisk Are Quietly Building Toward a Massive Bull Run
  • Neutral Sentiment: The financing news is a major AI-growth signal, but investors are assessing whether it represents durable demand or a more circular arrangement in which Broadcom helps customers finance purchases of Broadcom’s own chips. Broadcom Is Lending One of Its Biggest Customers $42 Billion to Buy Its Chips
  • Negative Sentiment: Broadcom’s stock remains under pressure relative to recent highs, and one analysis noted it was down since the last earnings report. The company’s elevated valuation and exposure to Anthropic’s ability to fund substantial infrastructure commitments remain key risks.

Insiders Place Their Bets

In other Broadcom news, insider Mark Brazeal sold 25,000 shares of the stock in a transaction on Friday, July 10th. The shares were sold at an average price of $401.33, for a total transaction of $10,033,250.00. Following the transaction, the insider directly owned 194,989 shares of the company’s stock, valued at $78,254,935.37. This represents a 11.36% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Gayla Delly sold 1,890 shares of the business’s stock in a transaction dated Wednesday, July 8th. The stock was sold at an average price of $385.38, for a total value of $728,368.20. Following the completion of the sale, the director directly owned 31,326 shares of the company’s stock, valued at $12,072,413.88. This represents a 5.69% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 51,890 shares of company stock valued at $20,241,368 over the last quarter. 1.90% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Broadcom

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Networth Advisors LLC lifted its holdings in Broadcom by 546.2% during the 1st quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer’s stock worth $26,000 after buying an additional 71 shares in the last quarter. Core Capital Management & Research inc. acquired a new stake in Broadcom in the second quarter worth about $31,000. Harborfront Financial Group LLC bought a new stake in Broadcom during the 2nd quarter worth about $38,000. Cherry Tree Wealth Management LLC raised its holdings in Broadcom by 44.9% during the 4th quarter. Cherry Tree Wealth Management LLC now owns 129 shares of the semiconductor manufacturer’s stock worth $45,000 after purchasing an additional 40 shares during the last quarter. Finally, Godfrey Financial Associates Inc. acquired a new position in Broadcom in the fourth quarter valued at approximately $56,000. Institutional investors and hedge funds own 76.43% of the company’s stock.

Broadcom Trading Up 3.3%

Broadcom stock opened at $355.14 on Tuesday. The firm has a market cap of $1.70 trillion, a price-to-earnings ratio of 45.36 and a beta of 1.46. The company has a debt-to-equity ratio of 0.57, a quick ratio of 2.29 and a current ratio of 2.50. The firm’s 50 day moving average price is $372.74 and its two-hundred day moving average price is $380.67. Broadcom has a 1 year low of $289.96 and a 1 year high of $495.00.

Broadcom (NASDAQ:AVGO – Get Free Report) last announced its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.22 by $0.10. The company had revenue of $29.59 billion for the quarter, compared to analyst estimates of $29.24 billion. Broadcom had a return on equity of 48.33% and a net margin of 42.94%.Broadcom’s revenue for the quarter was up 85.5% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.69 earnings per share. On average, research analysts predict that Broadcom will post 10.37 EPS for the current fiscal year.

Broadcom Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Monday, September 21st were issued a dividend of $0.65 per share. The ex-dividend date was Monday, September 21st. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.7%. Broadcom’s dividend payout ratio (DPR) is currently 33.21%.

About Broadcom

(Get Free Report)

Broadcom Inc (NASDAQ: AVGO) is a global technology company that designs, develops, and supplies semiconductor and infrastructure software products. Its semiconductor solutions support wired and wireless communications, data center networking, broadband access, storage, industrial applications, and other markets.

The company’s semiconductor portfolio includes networking and switching products, custom application-specific integrated circuits, wireless connectivity components, radio-frequency devices, optical components, and storage-related solutions.

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