Broadcom (NASDAQ:AVGO) Upgraded to “Buy” at Zacks Investment Research

Broadcom (NASDAQ:AVGOGet Rating) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued on Thursday, Zacks.com reports. The brokerage presently has a $602.00 price target on the semiconductor manufacturer’s stock. Zacks Investment Research‘s target price indicates a potential upside of 5.10% from the stock’s previous close.

According to Zacks, “Broadcom reported impressive second-quarter fiscal 2022 results. Top-line growth was driven by strength in networking and server storage segments. Networking is riding on strong adoption of Broadcom’s next-gen merchant switching and routing solutions by hyperscalers, enterprises and service providers. Aggressive adoption of its next-generation server storage solutions by hyperscalers is expected to drive top-line growth. Broadcom expects fiscal third-quarter networking and server storage revenues to grow more than 25% and 60% on a year-over-year basis, respectively. An upbeat third-quarter fiscal 2022 guidance is encouraging. Recently announced VMware acquisition will aid prospects over the long term. Shares have outperformed the industry year to date. However, increasing competition, along with high debt levels, are persistent overhangs.”

AVGO has been the subject of a number of other reports. Susquehanna Bancshares reissued a “buy” rating and set a $680.00 target price on shares of Broadcom in a research report on Tuesday, March 1st. Mizuho increased their target price on shares of Broadcom from $700.00 to $725.00 and gave the company a “buy” rating in a research report on Friday, May 27th. KeyCorp increased their target price on shares of Broadcom from $720.00 to $780.00 and gave the company an “overweight” rating in a research report on Friday, May 27th. StockNews.com raised shares of Broadcom from a “buy” rating to a “strong-buy” rating in a research report on Friday, May 13th. Finally, Piper Sandler reaffirmed a “buy” rating and issued a $750.00 price objective on shares of Broadcom in a report on Tuesday, May 24th. Four research analysts have rated the stock with a hold rating, twenty-three have given a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Buy” and an average price target of $676.04.

NASDAQ:AVGO traded down $0.84 on Thursday, hitting $572.78. The stock had a trading volume of 8,898 shares, compared to its average volume of 2,830,113. The company has a debt-to-equity ratio of 1.71, a quick ratio of 2.20 and a current ratio of 2.44. The stock has a market cap of $233.85 billion, a P/E ratio of 28.40, a price-to-earnings-growth ratio of 1.20 and a beta of 1.04. Broadcom has a 1 year low of $455.71 and a 1 year high of $677.76. The firm’s fifty day simple moving average is $585.78 and its two-hundred day simple moving average is $591.81.

Broadcom (NASDAQ:AVGOGet Rating) last posted its quarterly earnings data on Thursday, May 26th. The semiconductor manufacturer reported $9.07 EPS for the quarter, beating the consensus estimate of $7.88 by $1.19. The firm had revenue of $8.10 billion during the quarter, compared to analyst estimates of $7.91 billion. Broadcom had a net margin of 29.76% and a return on equity of 54.47%. The company’s revenue for the quarter was up 22.6% on a year-over-year basis. During the same quarter last year, the business posted $5.89 EPS. Equities research analysts predict that Broadcom will post 32.13 EPS for the current year.

Broadcom declared that its Board of Directors has approved a share repurchase program on Thursday, May 26th that allows the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization allows the semiconductor manufacturer to reacquire up to 4.3% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company’s leadership believes its shares are undervalued.

In other Broadcom news, Director Raul J. Fernandez bought 68 shares of the firm’s stock in a transaction that occurred on Thursday, March 10th. The shares were bought at an average price of $582.50 per share, for a total transaction of $39,610.00. The purchase was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Diane M. Bryant sold 476 shares of the firm’s stock in a transaction on Tuesday, April 5th. The stock was sold at an average price of $629.55, for a total transaction of $299,665.80. Following the completion of the sale, the director now directly owns 1,560 shares in the company, valued at approximately $982,098. The disclosure for this sale can be found here. In the last quarter, insiders sold 31,273 shares of company stock worth $18,818,718. 2.30% of the stock is owned by corporate insiders.

Several institutional investors and hedge funds have recently made changes to their positions in the company. Neuberger Berman Group LLC raised its holdings in Broadcom by 9.5% in the third quarter. Neuberger Berman Group LLC now owns 60,272 shares of the semiconductor manufacturer’s stock worth $27,070,000 after buying an additional 5,226 shares during the last quarter. Holderness Investments Co. increased its holdings in Broadcom by 8.8% during the third quarter. Holderness Investments Co. now owns 2,730 shares of the semiconductor manufacturer’s stock valued at $1,324,000 after buying an additional 220 shares during the last quarter. Cetera Investment Advisers increased its holdings in Broadcom by 5.1% during the third quarter. Cetera Investment Advisers now owns 14,136 shares of the semiconductor manufacturer’s stock valued at $6,855,000 after buying an additional 685 shares during the last quarter. Ignite Planners LLC purchased a new stake in Broadcom during the fourth quarter valued at approximately $278,000. Finally, Capital Investment Advisors LLC lifted its stake in shares of Broadcom by 15.7% during the 4th quarter. Capital Investment Advisors LLC now owns 5,006 shares of the semiconductor manufacturer’s stock valued at $3,331,000 after buying an additional 678 shares in the last quarter. 81.53% of the stock is currently owned by hedge funds and other institutional investors.

Broadcom Company Profile (Get Rating)

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.

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