Broadcom (AVGO) Stock Price, News & Analysis

Company Overview

Broadcom Inc. is a technology company with a global presence specializing in designing and developing semiconductor and infrastructure software solutions. The company was founded in 1961 as a semiconductor company and has since become a leading player in the tech industry. Broadcom has established itself as a force in the market with a strong focus on innovation and customer satisfaction.

Broadcom's product portfolio includes various semiconductor solutions for wired and wireless communications, enterprise storage and industrial markets. The company also offers infrastructure software solutions, including network switches, network processors and storage controllers. With such a diverse range of products and solutions, Broadcom has become a one-stop shop for companies needing cutting-edge technology solutions.

One of the key strengths of Broadcom is that it has a  commitment to innovation. The company is heavily invested in research and development to stay ahead of the curve in the fast-paced tech industry. Broadcom's innovations have been instrumental in developing new products and services across various sectors, from healthcare to automotive to telecommunications.

Broadcom has also been very successful in expanding its customer base. The company's products and solutions are used by some of the world's leading companies, including Apple, Cisco and Samsung. This diverse customer base has helped insulate Broadcom from any particular industry's fluctuations.

The company has seen strong financial performance in recent years, with revenue and earnings growth driven by its expanding product portfolio and innovative solutions. 

Despite its impressive financial performance, Broadcom faces several challenges in the competitive tech industry. One of the biggest challenges is the ongoing trade dispute between the US and China, which has increased tariffs on many of Broadcom's products. The company has also faced scrutiny over its business practices, particularly its acquisition strategy.

Broadcom's acquisition strategy has been controversial, with some critics accusing the company of engaging in anti-competitive behavior. Broadcom has defended its strategy, arguing that the company must remain competitive in the tech industry. The company has also pledged to continue investing in research and development to ensure that it can continue to provide customers with innovative solutions.

Broadcom is well-positioned for long-term success in the tech industry. The company's commitment to innovation and customer satisfaction, combined with its strong financial performance, could make it an investment opportunity for those looking to invest in the tech sector. 

Broadcom Inc. is a global technology company that designs and develops semiconductor and infrastructure software solutions. Broadcom has become a leading player in the tech industry with a strong focus on innovation and customer satisfaction. The company remains positioned for long-term growth and success despite facing challenges like the ongoing trade dispute between the US and China. 

Written by Jeffrey Neal Johnson

Key Stats

• Today's Range: $163.43 to $169.14
• 50-Day Range: $140.82 to $185.95
• 52-Week Range: $90.31 to $186.42
• Volume: 20.84 million shs
• Average Volume: 29.53 million shs
• Market Capitalization: $769.90 billion
• P/E Ratio: 143.21
• Dividend Yield: 1.29%
• Price Target: $192.79
• Consensus Rating: Buy

Broadcom Stock Analysis - MarketRank™

Broadcom scored higher than 99% of companies evaluated by MarketBeat, and ranked 17th out of 657 stocks in the computer and technology sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 3.5 / 5
• Analyst Rating: Buy

Consensus Rating

Broadcom has received a consensus rating of Buy. The company's average rating score is 3.00, and is based on 24 buy ratings, 1 hold rating, and no sell ratings.

Amount of Analyst Coverage

Broadcom has been the subject of 11 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Earnings and Valuation

• Score: 2.5 / 5
• Proj. Earnings Growth: 36.24%

Earnings Growth

Earnings for Broadcom are expected to grow by 36.24% in the coming year, from $3.78 to $5.15 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Broadcom is 143.21, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 123.98.

Price to Earnings Ratio vs. Sector

The P/E ratio of Broadcom is 143.21, which means that it is trading at a less expensive P/E ratio than the Computer and Technology sector average P/E ratio of about 266.34.

Price to Earnings Growth Ratio

Broadcom has a PEG Ratio of 2.04. PEG Ratios above 1 indicate that a company could be overvalued.

Price to Book Value per Share Ratio

Broadcom has a P/B Ratio of 32.20. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

Short Interest

• Score: 3.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

1.45% of the outstanding shares of Broadcom have been sold short.

Short Interest Ratio / Days to Cover

Broadcom has a short interest ratio ("days to cover") of 2.8, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Broadcom has recently increased by 3.60%, indicating that investor sentiment is decreasing.

Dividend

• Score: 3.3 / 5
• Dividend Strength: Strong

Dividend Yield

Broadcom pays a meaningful dividend of 1.20%, higher than the bottom 25% of all stocks that pay dividends.

Dividend Growth

Broadcom has been increasing its dividend for 15 years.

Dividend Coverage

The dividend payout ratio of Broadcom is 184.35%. Payout ratios above 75% are not desirable because they may not be sustainable.

Dividend Sustainability

Based on earnings estimates, Broadcom will have a dividend payout ratio of 41.17% next year. This indicates that Broadcom will be able to sustain or increase its dividend.

Sustainability and ESG

• Score: 3.1 / 5
• Environmental Score: -1.46

Percentage of Shares Shorted

1.45% of the outstanding shares of Broadcom have been sold short.

Short Interest Ratio / Days to Cover

Broadcom has a short interest ratio ("days to cover") of 2.8, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Broadcom has recently increased by 3.60%, indicating that investor sentiment is decreasing.

News and Social Media

• Score: 3.7 / 5
• News Sentiment: 1.58

News Sentiment

Broadcom has a news sentiment score of 1.58. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a higher news sentiment than the 0.57 average news sentiment score of Computer and Technology companies.

News Coverage This Week

MarketBeat has tracked 184 news articles for Broadcom this week, compared to 38 articles on an average week.

Search Interest

Only 221 people have searched for AVGO on MarketBeat in the last 30 days. This is a decrease of -22% compared to the previous 30 days.

MarketBeat Follows

164 people have added Broadcom to their MarketBeat watchlist in the last 30 days. This is an increase of 36% compared to the previous 30 days.

Company Ownership

• Score: 2.5 / 5
• Insider Trading: Selling Shares

Insider Buying vs. Insider Selling

In the past three months, Broadcom insiders have sold more of their company's stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $53,540,590.00 in company stock.

Percentage Held by Insiders

Only 2.00% of the stock of Broadcom is held by insiders.

Percentage Held by Institutions

76.43% of the stock of Broadcom is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

AVGO Stock Analysis - Frequently Asked Questions

How have AVGO shares performed this year?

Broadcom's stock was trading at $111.6250 at the start of the year. Since then, AVGO shares have increased by 47.7% and is now trading at $164.84.
View the best growth stocks for 2024 here.

How were Broadcom's earnings last quarter?

Broadcom Inc. (NASDAQ:AVGO) released its earnings results on Thursday, September, 5th. The semiconductor manufacturer reported $1.24 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.20 by $0.04. The business's revenue for the quarter was up 47.3% compared to the same quarter last year.
Read the conference call transcript.

When did Broadcom's stock split?

Shares of Broadcom split before market open on Monday, July 15th 2024. The 10-1 split was announced on Wednesday, June 12th 2024. The newly created shares were distributed to shareholders after the closing bell on Friday, July 12th 2024. An investor that had 100 shares of stock prior to the split would have 1,000 shares after the split.

Does Broadcom have any subsidiaries?

The following companies are subsidiaries of Broadcom: AppNeta, Bay Dynamics, NortonLifeLock, Camel Expeditionary, Brocade Communications Systems, MagnaCom, BroadLogic Network Technologies, and others.

Who are Broadcom's major shareholders?

Top institutional investors of Broadcom include State Street Corp (3.95%), Geode Capital Management LLC (2.12%), FMR LLC (1.94%) and Jennison Associates LLC (0.77%). Insiders that own company stock include Hock E Tan, Charlie B Kawwas, Kirsten M Spears, Mark David Brazeal, Check Kian Low, Gayla J Delly, Justine Page, Diane M Bryant, Raul J Fernandez, Kenneth Hao and Thomas H Krause.
View institutional ownership trends.

How do I buy shares of Broadcom?

Shares of AVGO stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.
Compare Top Brokerages Here.

What other stocks do shareholders of Broadcom own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Broadcom investors own include BlackRock (BLK), ServiceNow (NOW), UnitedHealth Group (UNH), The Goldman Sachs Group (GS), Illinois Tool Works (ITW), IDEXX Laboratories (IDXX) and Tesla (TSLA).

Company Calendar

• Last Earnings: 9/05/2024
• Ex-Dividend for 9/30 Dividend: 9/19/2024
• Dividend Payable: 9/30/2024
• Today: 11/16/2024
• Next Earnings (Confirmed): 12/12/2024
• Fiscal Year End: 10/31/2025

Industry, Sector and Symbol

• Stock Exchange: NASDAQ
• Sector: Computer and Technology
• Industry: Semiconductors & related devices
• Sub-Industry: Semiconductors
• Current Symbol: NASDAQ:AVGO
• CUSIP: Y0486S10
• CIK: 1730168
• Web: www.broadcom.com
• Phone: (408) 433-8000
• Fax: N/A
• Employees: 20,000
• Year Founded: 1961

Price Target and Rating

• Average Stock Price Target: $192.79
• High Stock Price Target: $240.00
• Low Stock Price Target: $120.00
• Potential Upside/Downside: +17.0%
• Consensus Rating: Buy
• Rating Score (0-4): 3.00
• Research Coverage: 26 Analysts

Profitability

• EPS (Most Recent Fiscal Year): $1.15
• Trailing P/E Ratio: 143.21
• Forward P/E Ratio: 43.61
• P/E Growth: 2.04
• Net Income: $14.08 billion
• Net Margins: 10.88%
• Pretax Margin: 21.62%
• Return on Equity: 30.12%
• Return on Assets: 11.66%

Debt

• Debt-to-Equity Ratio: 1.02
• Current Ratio: 1.04
• Quick Ratio: 0.94

Sales & Book Value

• Annual Sales: $46.82 billion
• Price / Sales: 16.45
• Cash Flow: $4.19 per share
• Price / Cash Flow: 39.38
• Book Value: $5.12 per share
• Price / Book: 32.20

Miscellaneous

• Outstanding Shares: 4,670,576,000
• Free Float: 4,577,164,000
• Market Cap: $769.90 billion
• Optionable: Optionable
• Beta: 1.17