Broadcom (NASDAQ:AVGO) Trading 0.5% Higher – Should You Buy?

Broadcom Inc. (NASDAQ:AVGO) shares rose 0.5% during trading on Monday . The company traded as high as $177.90 and last traded at $177.48. Approximately 4,169,063 shares were traded during trading, a decline of 87% from the average daily volume of 31,053,891 shares. The stock had previously closed at $176.64.

Wall Street Analyst Weigh In

A number of research firms recently weighed in on AVGO. Wells Fargo & Company increased their price objective on shares of Broadcom from $143.00 to $170.00 and gave the stock an “equal weight” rating in a report on Thursday, June 13th. UBS Group lowered their target price on Broadcom from $173.50 to $170.00 and set a “buy” rating on the stock in a research report on Monday, September 9th. Truist Financial upped their price target on shares of Broadcom from $204.00 to $205.00 and gave the stock a “buy” rating in a research note on Tuesday. Bank of America reaffirmed a “buy” rating and set a $215.00 target price (up previously from $200.00) on shares of Broadcom in a research note on Monday, June 24th. Finally, Mizuho lifted their price target on shares of Broadcom from $162.50 to $190.00 and gave the stock a “buy” rating in a research report on Thursday, June 13th. Two equities research analysts have rated the stock with a hold rating, twenty-four have assigned a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $190.29.

Broadcom Stock Performance

The firm has a market cap of $841.28 billion, a price-to-earnings ratio of 7.77, a price-to-earnings-growth ratio of 2.78 and a beta of 1.17. The firm’s 50 day moving average is $160.88 and its 200-day moving average is $150.57. The company has a debt-to-equity ratio of 1.02, a quick ratio of 0.94 and a current ratio of 1.04.

Broadcom (NASDAQ:AVGO) last issued its quarterly earnings data on Thursday, September 5th. The semiconductor manufacturer reported $1.24 EPS for the quarter, beating analysts’ consensus estimates of $1.20 by $0.04. The business had revenue of $13.07 billion for the quarter, compared to analyst estimates of $12.98 billion. Broadcom had a return on equity of 30.12% and a net margin of 10.88%. The firm’s revenue for the quarter was up 47.3% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.95 EPS. Sell-side analysts anticipate that Broadcom Inc. will post 3.78 earnings per share for the current fiscal year.

Broadcom Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, September 30th. Investors of record on Thursday, September 19th were issued a dividend of $0.53 per share. This is an increase from Broadcom’s previous quarterly dividend of $0.53. This represents a $2.12 annualized dividend and a dividend yield of 1.17%. The ex-dividend date of this dividend was Thursday, September 19th. Broadcom’s dividend payout ratio is currently 9.12%.

Insider Buying and Selling

In other news, CEO Hock E. Tan sold 50,000 shares of the firm’s stock in a transaction dated Tuesday, September 17th. The stock was 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 directly owns 1,331,910 shares of the company’s stock, valued at approximately $217,594,136.70. This trade represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. In related news, CEO Hock E. Tan sold 50,000 shares of the business’s stock in a transaction on Tuesday, September 17th. The shares were sold at an average price of $163.37, for a total transaction of $8,168,500.00. Following the transaction, the chief executive officer now owns 1,331,910 shares of the company’s stock, valued at approximately $217,594,136.70. 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 through this hyperlink. Also, CEO Hock E. Tan sold 10,000 shares of the stock in a transaction on Tuesday, October 1st. The shares were sold at an average price of $167.14, for a total transaction of $1,671,400.00. Following the completion of the sale, the chief executive officer now directly owns 1,171,910 shares of the company’s stock, valued at approximately $195,873,037.40. This trade represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 263,452 shares of company stock worth $56,396,638 in the last quarter. 2.00% of the stock is currently owned by company insiders.

Institutional Trading of Broadcom

Several institutional investors have recently modified their holdings of the company. Matrix Trust Co boosted its stake in Broadcom by 923.6% during the third quarter. Matrix Trust Co now owns 19,100 shares of the semiconductor manufacturer’s stock worth $3,295,000 after buying an additional 17,234 shares in the last quarter. UMB Bank n.a. lifted its holdings in shares of Broadcom by 817.6% during the 3rd quarter. UMB Bank n.a. now owns 521,880 shares of the semiconductor manufacturer’s stock worth $90,024,000 after acquiring an additional 465,007 shares during the period. Cadinha & Co. LLC boosted its position in shares of Broadcom by 900.7% during the 3rd quarter. Cadinha & Co. LLC now owns 1,491 shares of the semiconductor manufacturer’s stock valued at $257,000 after acquiring an additional 1,342 shares in the last quarter. Advocate Group LLC increased its stake in Broadcom by 858.2% in the third quarter. Advocate Group LLC now owns 26,475 shares of the semiconductor manufacturer’s stock valued at $4,567,000 after acquiring an additional 23,712 shares during the period. Finally, Hyperion Partners LLC acquired a new position in Broadcom in the third quarter worth about $243,000. Institutional investors and hedge funds own 76.43% of the company’s stock.

Broadcom Company Profile

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.