Broadcom’s (AVGO) Buy Rating Reiterated at Sanford C. Bernstein

by · The Markets Daily

Sanford C. Bernstein reaffirmed their buy rating on shares of Broadcom (NASDAQ:AVGO – Free Report) in a report issued on Monday morning.

A number of other brokerages also recently issued reports on AVGO. Oppenheimer restated an “outperform” rating and issued a $535.00 price target (up from $450.00) on shares of Broadcom in a research report on Thursday, June 4th. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a $515.00 price objective (up from $430.00) on shares of Broadcom in a research note on Thursday, June 4th. JPMorgan Chase & Co. raised their target price on shares of Broadcom from $500.00 to $580.00 and gave the company an “overweight” rating in a research report on Thursday, June 4th. Weiss Ratings lowered Broadcom from a “buy (b)” rating to a “buy (b-)” rating in a research report on Thursday, July 30th. Finally, Mizuho increased their target price on shares of Broadcom from $480.00 to $530.00 and gave the company an “outperform” rating in a research report on Thursday, June 4th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-seven have given a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $527.20.

Get Our Latest Analysis on AVGO

Broadcom Price Performance

NASDAQ:AVGO traded down $4.63 on Monday, reaching $350.36. 20,837,575 shares of the company’s stock traded hands, compared to its average volume of 25,281,299. The stock has a 50-day simple moving average of $377.21 and a 200-day simple moving average of $380.26. Broadcom has a 12 month low of $289.96 and a 12 month high of $495.00. The firm has a market cap of $1.67 trillion, a PE ratio of 44.75 and a beta of 1.44. The company has a quick ratio of 2.29, a current ratio of 2.50 and a debt-to-equity ratio of 0.57.

Broadcom (NASDAQ:AVGO – Get Free Report) last issued its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share for the quarter, topping analysts’ consensus estimates of $3.22 by $0.10. The firm had revenue of $29.59 billion during the quarter, compared to analyst estimates of $29.24 billion. Broadcom had a net margin of 42.94% and a return on equity of 48.33%. Broadcom’s revenue for the quarter was up 85.5% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.69 earnings per share. Equities research analysts forecast that Broadcom will post 10.36 earnings per share for the current year.

Broadcom Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Monday, September 21st will be paid a $0.65 dividend. The ex-dividend date of this dividend is Monday, September 21st. This represents a $2.60 dividend on an annualized basis and a yield of 0.7%. Broadcom’s dividend payout ratio (DPR) is currently 33.21%.

Insiders Place Their Bets

In related news, insider Mark Brazeal sold 25,000 shares of the company’s stock in a transaction dated 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 completion of the sale, the insider owned 194,989 shares of the company’s stock, valued at approximately $78,254,935.37. This represents a 11.36% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Gayla Delly sold 1,890 shares of the company’s stock in a transaction 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 sale, the director owned 31,326 shares of the company’s stock, valued at approximately $12,072,413.88. The trade was a 5.69% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 53,492 shares of company stock valued at $20,840,292 in the last 90 days. 1.90% of the stock is owned by insiders.

Hedge Funds Weigh In On Broadcom

Hedge funds and other institutional investors have recently made changes to their positions in the stock. QRG Capital Management Inc. increased its holdings in shares of Broadcom by 10.1% in the 2nd quarter. QRG Capital Management Inc. now owns 864,506 shares of the semiconductor manufacturer’s stock valued at $323,796,000 after acquiring an additional 79,451 shares during the last quarter. Envestnet Portfolio Solutions Inc. lifted its stake in Broadcom by 9.4% during the second quarter. Envestnet Portfolio Solutions Inc. now owns 227,394 shares of the semiconductor manufacturer’s stock worth $85,882,000 after purchasing an additional 19,465 shares during the last quarter. Envestnet Asset Management Inc. boosted its holdings in Broadcom by 9.9% in the second quarter. Envestnet Asset Management Inc. now owns 8,133,536 shares of the semiconductor manufacturer’s stock valued at $3,003,100,000 after purchasing an additional 735,257 shares in the last quarter. Andra AP fonden boosted its holdings in Broadcom by 25.9% in the second quarter. Andra AP fonden now owns 817,960 shares of the semiconductor manufacturer’s stock valued at $308,984,000 after purchasing an additional 168,260 shares in the last quarter. Finally, State Street Corp increased its stake in Broadcom by 8.7% in the second quarter. State Street Corp now owns 208,031,610 shares of the semiconductor manufacturer’s stock valued at $75,367,711,000 after purchasing an additional 16,651,378 shares during the last quarter. Hedge funds and other institutional investors own 76.43% of the company’s stock.

Trending Headlines about Broadcom

Here are the key news stories impacting Broadcom this week:

  • Positive Sentiment: Broadcom’s custom-chip opportunity remains the primary bullish catalyst. Analysts and bullish investors point to hyperscaler partnerships, AI networking demand, and management’s projections for approximately $115 billion in AI semiconductor revenue in fiscal 2027 and $230 billion in fiscal 2028. The AI Boom Isn’t Over: 3 Stocks You Need to Watch
  • Positive Sentiment: Recent coverage also highlights Broadcom’s share-repurchase activity and AI-chip deals with major hyperscalers, reinforcing the view that the company can benefit as customers diversify beyond standard AI processors. Its software business and dividend-growth history provide additional long-term support. Broadcom Is Up 7.4% After Massive Buybacks and AI Chip Deals
  • Neutral Sentiment: Broadcom’s valuation reflects substantial optimism, with a reported price-to-earnings ratio above 44 and the stock trading below its 50-day and 200-day moving averages. Analysts remain constructive, but the market is demanding strong execution against ambitious AI forecasts.
  • Neutral Sentiment: Broader semiconductor sentiment has also been affected by higher Treasury yields, rising oil prices, and profit-taking after a strong market advance. These factors may be amplifying the reaction to company-specific news. Why Are Intel, AMD, and Broadcom Stocks Down?
  • Negative Sentiment: China is reportedly surveying Broadcom switches used in state-backed data centers as Beijing encourages domestic semiconductor suppliers and reduces reliance on foreign technology. The review raises risks of lost Chinese business, tighter restrictions, and slower adoption of Broadcom’s networking products. China Surveys Broadcom Switch Use in State Data Centers
  • Negative Sentiment: Investors are increasingly focused on whether Broadcom can convert its aggressive AI outlook into results while managing geopolitical exposure and elevated expectations. The China developments add a new risk to an AI thesis already priced for considerable growth. Broadcom: China Just Added a New Risk to the AI Story

Broadcom Company Profile

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Broadcom Inc (NASDAQ:AVGO) designs, develops and supplies semiconductor and infrastructure software products for businesses, telecommunications providers and other organizations worldwide. Its semiconductor portfolio includes networking and connectivity components, custom application-specific integrated circuits, broadband and wireless communications products, storage adapters, optical components, and industrial solutions.

The company also provides enterprise infrastructure software through businesses including VMware, which offers virtualization and private- and hybrid-cloud solutions; mainframe and enterprise software; and cybersecurity products.

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