Broadcom (NASDAQ:AVGO) Stock Price Up 0.3% – What’s Next?

by · The Markets Daily

Broadcom Inc. (NASDAQ:AVGO – Get Free Report) shares shot up 0.3% during trading on Wednesday . The stock traded as high as $179.25 and last traded at $176.52. 3,945,118 shares were traded during trading, a decline of 87% from the average session volume of 30,696,529 shares. The stock had previously closed at $175.98.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on AVGO. TD Cowen upgraded Broadcom to a “strong-buy” rating in a research note on Monday, September 16th. Morgan Stanley lifted their price objective on shares of Broadcom from $176.00 to $180.00 and gave the company an “overweight” rating in a research report on Friday, September 6th. Benchmark reaffirmed a “buy” rating and issued a $210.00 target price on shares of Broadcom in a report on Friday, September 6th. Cantor Fitzgerald boosted their target price on Broadcom from $200.00 to $225.00 and gave the stock an “overweight” rating in a research report on Tuesday, October 8th. Finally, Truist Financial upped their price objective on Broadcom from $204.00 to $205.00 and gave the stock a “buy” rating in a report on Tuesday, October 8th. Two equities research analysts have rated the stock with a hold rating, twenty-four have issued a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat, Broadcom has an average rating of “Moderate Buy” and a consensus target price of $191.54.

View Our Latest Research Report on AVGO

Broadcom Price Performance

The company has a debt-to-equity ratio of 1.02, a quick ratio of 0.94 and a current ratio of 1.04. The company has a market capitalization of $825.59 billion, a PE ratio of 7.59, a P/E/G ratio of 2.99 and a beta of 1.17. The stock has a 50 day moving average price of $164.36 and a two-hundred day moving average price of $152.27.

Broadcom (NASDAQ:AVGO – Get Free Report) last released its quarterly earnings results on Thursday, September 5th. The semiconductor manufacturer reported $1.24 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.20 by $0.04. The company had revenue of $13.07 billion during the quarter, compared to analysts’ expectations of $12.98 billion. Broadcom had a net margin of 10.88% and a return on equity of 30.12%. The business’s quarterly revenue was up 47.3% compared to the same quarter last year. During the same period in the prior year, the company earned $0.95 earnings per share. Equities analysts forecast that Broadcom Inc. will post 3.78 earnings per share for the current year.

Broadcom Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, September 30th. Stockholders of record on Thursday, September 19th were issued a dividend of $0.53 per share. The ex-dividend date was Thursday, September 19th. This is a positive change from Broadcom’s previous quarterly dividend of $0.53. This represents a $2.12 dividend on an annualized basis and a dividend yield of 1.20%. Broadcom’s payout ratio is 9.12%.

Insider Activity at Broadcom

In related news, insider Mark David Brazeal sold 18,900 shares of the business’s stock in a transaction dated Wednesday, October 9th. The stock was sold at an average price of $182.88, for a total transaction of $3,456,432.00. Following the transaction, the insider now directly owns 380,560 shares in the company, valued at $69,596,812.80. The trade was a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. In related news, CEO Hock E. Tan sold 50,000 shares of the company’s stock in a transaction dated Tuesday, September 17th. The shares were sold at an average price of $163.37, for a total value of $8,168,500.00. Following the sale, the chief executive officer now owns 1,331,910 shares of the company’s stock, valued at $217,594,136.70. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, insider Mark David Brazeal sold 18,900 shares of the stock in a transaction dated Wednesday, October 9th. The stock was sold at an average price of $182.88, for a total transaction of $3,456,432.00. Following the completion of the transaction, the insider now directly owns 380,560 shares of the company’s stock, valued at $69,596,812.80. This trade represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 295,130 shares of company stock worth $50,646,622 in the last ninety days. 2.00% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Broadcom

Large investors have recently modified their holdings of the stock. Scarborough Advisors LLC bought a new stake in shares of Broadcom during the fourth quarter worth approximately $73,000. ST Germain D J Co. Inc. lifted its position in shares of Broadcom by 11.4% in the first quarter. ST Germain D J Co. Inc. now owns 166 shares of the semiconductor manufacturer’s stock worth $220,000 after purchasing an additional 17 shares in the last quarter. Tompkins Financial Corp boosted its holdings in Broadcom by 10.5% during the first quarter. Tompkins Financial Corp now owns 116 shares of the semiconductor manufacturer’s stock worth $154,000 after purchasing an additional 11 shares during the last quarter. Farmers Trust Co. acquired a new stake in Broadcom in the 1st quarter valued at $205,000. Finally, Foster Group Inc. grew its holdings in shares of Broadcom by 29.5% in the 1st quarter. Foster Group Inc. now owns 408 shares of the semiconductor manufacturer’s stock valued at $541,000 after acquiring an additional 93 shares in the last quarter. 76.43% of the stock is currently owned by institutional investors.

About Broadcom

(Get Free Report)

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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