Traders Buy Large Volume of Call Options on Broadcom (NASDAQ:AVGO)

Broadcom Inc. (NASDAQ:AVGO) saw unusually large options trading on Friday. Investors acquired 87,676 call options on the stock. This is an increase of approximately 44% compared to the average daily volume of 60,732 call options.

Broadcom Price Performance

AVGO opened at $1,605.53 on Friday. The company has a debt-to-equity ratio of 1.02, a quick ratio of 1.16 and a current ratio of 1.25. The stock has a market capitalization of $747.36 billion, a PE ratio of 69.06, a price-to-earnings-growth ratio of 2.76 and a beta of 1.17. The stock’s 50 day moving average price is $1,433.70 and its 200-day moving average price is $1,302.33. Broadcom has a 52-week low of $795.09 and a 52-week high of $1,851.62.

Broadcom shares are scheduled to split on Monday, July 15th. The 10-1 split was announced on Wednesday, June 12th. The newly issued shares will be distributed to shareholders after the closing bell on Friday, July 12th.

Broadcom (NASDAQ:AVGO) last issued its quarterly earnings data on Wednesday, June 12th. The semiconductor manufacturer reported $10.96 EPS for the quarter, topping the consensus estimate of $10.78 by $0.18. The business had revenue of $12.49 billion during the quarter, compared to analyst estimates of $12.06 billion. Broadcom had a net margin of 24.10% and a return on equity of 35.82%. The company’s revenue for the quarter was up 43.0% on a year-over-year basis. During the same period in the prior year, the business earned $9.51 EPS. On average, equities research analysts predict that Broadcom will post 37.19 EPS for the current year.

Broadcom Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, June 28th. Shareholders of record on Monday, June 24th were issued a dividend of $5.25 per share. The ex-dividend date was Monday, June 24th. This represents a $21.00 dividend on an annualized basis and a dividend yield of 1.31%. Broadcom’s dividend payout ratio (DPR) is 90.32%.

Insider Buying and Selling

In other news, Director Justine Page sold 110 shares of the business’s stock in a transaction that occurred on Wednesday, April 10th. The shares were sold at an average price of $1,323.00, for a total value of $145,530.00. Following the sale, the director now owns 3,125 shares of the company’s stock, valued at $4,134,375. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. In related news, Director Justine Page sold 110 shares of the business’s stock in a transaction dated Wednesday, April 10th. The stock was sold at an average price of $1,323.00, for a total transaction of $145,530.00. Following the completion of the transaction, the director now directly owns 3,125 shares in the company, valued at $4,134,375. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, CEO Hock E. Tan sold 2,000 shares of the business’s stock in a transaction dated Tuesday, April 2nd. The stock was sold at an average price of $1,312.25, for a total value of $2,624,500.00. Following the transaction, the chief executive officer now directly owns 168,096 shares of the company’s stock, valued at approximately $220,583,976. The disclosure for this sale can be found here. In the last 90 days, insiders sold 10,364 shares of company stock valued at $13,953,966. 2.00% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. Stuart Chaussee & Associates Inc. bought a new position in Broadcom in the fourth quarter worth $25,000. Legend Financial Advisors Inc. grew its position in shares of Broadcom by 72.7% in the 1st quarter. Legend Financial Advisors Inc. now owns 19 shares of the semiconductor manufacturer’s stock worth $25,000 after buying an additional 8 shares during the period. PSI Advisors LLC increased its stake in shares of Broadcom by 66.7% in the 4th quarter. PSI Advisors LLC now owns 25 shares of the semiconductor manufacturer’s stock worth $28,000 after acquiring an additional 10 shares in the last quarter. BKM Wealth Management LLC purchased a new position in Broadcom during the 4th quarter valued at about $29,000. Finally, Richardson Capital Management LLC bought a new stake in Broadcom during the first quarter worth about $29,000. Institutional investors own 76.43% of the company’s stock.

Analyst Upgrades and Downgrades

AVGO has been the subject of a number of research analyst reports. Barclays lifted their price objective on shares of Broadcom from $1,500.00 to $2,000.00 and gave the stock an “overweight” rating in a report on Thursday, June 13th. Jefferies Financial Group lifted their price target on Broadcom from $1,550.00 to $2,050.00 and gave the stock a “buy” rating in a research note on Thursday, June 13th. Rosenblatt Securities reiterated a “buy” rating and set a $1,500.00 price objective on shares of Broadcom in a research report on Wednesday, June 12th. Citigroup restated a “buy” rating and issued a $1,560.00 target price on shares of Broadcom in a research report on Tuesday, June 11th. Finally, Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and set a $1,500.00 price target on shares of Broadcom in a research report on Monday, April 8th. Three research analysts have rated the stock with a hold rating and twenty-six have given a buy rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $1,673.04.

About Broadcom

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.