Broadcom (NASDAQ:AVGO) Shares Up 20.3% on Earnings Beat

Broadcom Inc. (NASDAQ:AVGO)’s share price was up 20.3% during mid-day trading on Friday after the company announced better than expected quarterly earnings. The company traded as high as $221.65 and last traded at $217.37. Approximately 49,550,037 shares changed hands during trading, an increase of 70% from the average daily volume of 29,142,752 shares. The stock had previously closed at $180.66.

The semiconductor manufacturer reported $1.42 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.39 by $0.03. The company had revenue of $14.05 billion during the quarter, compared to analysts’ expectations of $14.07 billion. Broadcom had a net margin of 10.88% and a return on equity of 30.12%. The firm’s quarterly revenue was up 51.2% on a year-over-year basis. During the same period in the previous year, the company earned $0.98 EPS.

Broadcom Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 31st. Shareholders of record on Monday, December 23rd will be issued a dividend of $0.59 per share. This is an increase from Broadcom’s previous quarterly dividend of $0.53. This represents a $2.36 annualized dividend and a yield of 1.05%. The ex-dividend date is Monday, December 23rd. Broadcom’s dividend payout ratio (DPR) is presently 172.36%.

Wall Street Analyst Weigh In

Several analysts recently weighed in on the company. Mizuho lifted their price objective on Broadcom from $190.00 to $220.00 and gave the company an “outperform” rating in a report on Monday, October 14th. William Blair started coverage on shares of Broadcom in a research report on Wednesday, September 18th. They set an “outperform” rating for the company. Hsbc Global Res raised shares of Broadcom to a “hold” rating in a research report on Tuesday, December 3rd. Evercore ISI boosted their price objective on shares of Broadcom from $201.00 to $250.00 and gave the company an “outperform” rating in a report on Friday. Finally, Rosenblatt Securities reissued a “buy” rating and issued a $240.00 price objective on shares of Broadcom in a report on Wednesday. Three research analysts have rated the stock with a hold rating and twenty-four have issued a buy rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $220.33.

Insider Buying and Selling

In other Broadcom news, Director Gayla J. Delly sold 750 shares of the business’s stock in a transaction on Wednesday, September 25th. The stock was sold at an average price of $174.53, for a total transaction of $130,897.50. Following the completion of the transaction, the director now owns 34,750 shares in the company, valued at approximately $6,064,917.50. The trade was a 2.11 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Charlie B. Kawwas sold 25,200 shares of the firm’s stock in a transaction on Thursday, September 19th. The shares were sold at an average price of $168.27, for a total value of $4,240,404.00. Following the transaction, the insider now directly owns 753,280 shares in the company, valued at $126,754,425.60. This trade represents a 3.24 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 311,080 shares of company stock valued at $53,540,590. Insiders own 2.00% of the company’s stock.

Institutional Investors Weigh In On Broadcom

Institutional investors have recently bought and sold shares of the stock. NCP Inc. increased its stake in shares of Broadcom by 615.4% during the second quarter. NCP Inc. now owns 465 shares of the semiconductor manufacturer’s stock valued at $747,000 after acquiring an additional 400 shares during the period. Johnson & White Wealth Management LLC boosted its stake in Broadcom by 12.4% during the 2nd quarter. Johnson & White Wealth Management LLC now owns 1,776 shares of the semiconductor manufacturer’s stock valued at $2,852,000 after purchasing an additional 196 shares in the last quarter. Hennion & Walsh Asset Management Inc. increased its position in shares of Broadcom by 26.1% during the 2nd quarter. Hennion & Walsh Asset Management Inc. now owns 7,176 shares of the semiconductor manufacturer’s stock valued at $11,521,000 after purchasing an additional 1,487 shares during the period. Apollon Wealth Management LLC raised its stake in shares of Broadcom by 2.8% in the 2nd quarter. Apollon Wealth Management LLC now owns 18,095 shares of the semiconductor manufacturer’s stock worth $29,052,000 after buying an additional 490 shares in the last quarter. Finally, Apollon Financial LLC raised its stake in shares of Broadcom by 8.0% in the 2nd quarter. Apollon Financial LLC now owns 1,826 shares of the semiconductor manufacturer’s stock worth $2,932,000 after buying an additional 136 shares in the last quarter. Institutional investors and hedge funds own 76.43% of the company’s stock.

Broadcom Stock Performance

The company has a fifty day moving average price of $174.61 and a two-hundred day moving average price of $164.45. The firm has a market cap of $1.05 trillion, a price-to-earnings ratio of 182.76, a price-to-earnings-growth ratio of 2.15 and a beta of 1.13. The company has a debt-to-equity ratio of 1.02, a current ratio of 1.04 and a quick ratio of 0.94.

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.