Broadcom (NASDAQ:AVGO) Stock Price Up 2.1% – Still a Buy?

Broadcom Inc. (NASDAQ:AVGO)’s stock price rose 2.1% on Wednesday . The stock traded as high as $199.98 and last traded at $194.05. Approximately 11,175,607 shares changed hands during mid-day trading, a decline of 62% from the average daily volume of 29,462,014 shares. The stock had previously closed at $190.09.

Wall Street Analyst Weigh In

AVGO has been the topic of several analyst reports. Mizuho reduced their target price on shares of Broadcom from $260.00 to $250.00 and set an “outperform” rating on the stock in a report on Friday, March 7th. Hsbc Global Res raised shares of Broadcom to a “hold” rating in a report on Tuesday, December 3rd. Cantor Fitzgerald reissued an “overweight” rating and set a $300.00 price objective on shares of Broadcom in a report on Friday, March 7th. Barclays raised their price objective on shares of Broadcom from $205.00 to $260.00 and gave the stock an “overweight” rating in a report on Friday, January 17th. Finally, JPMorgan Chase & Co. raised their price objective on shares of Broadcom from $210.00 to $250.00 and gave the stock an “overweight” rating in a report on Friday, December 13th. Three investment analysts have rated the stock with a hold rating and twenty-five have issued a buy rating to the stock. According to data from MarketBeat.com, Broadcom presently has an average rating of “Moderate Buy” and an average price target of $231.48.

Broadcom Stock Up 2.5 %

The firm has a market cap of $916.55 billion, a price-to-earnings ratio of 158.81, a P/E/G ratio of 2.29 and a beta of 1.01. The company has a current ratio of 1.17, a quick ratio of 1.07 and a debt-to-equity ratio of 0.98. The firm has a 50 day moving average price of $220.42 and a 200-day moving average price of $193.44.

Broadcom (NASDAQ:AVGO) last released its quarterly earnings results on Thursday, December 12th. The semiconductor manufacturer reported $1.42 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.39 by $0.03. Broadcom had a return on equity of 28.00% and a net margin of 11.43%. The business had revenue of $14.05 billion during the quarter, compared to the consensus estimate of $14.07 billion. During the same quarter in the previous year, the company posted $0.98 EPS. The business’s revenue was up 51.2% on a year-over-year basis. On average, equities analysts forecast that Broadcom Inc. will post 5.38 EPS for the current year.

Broadcom Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, March 31st. Investors of record on Thursday, March 20th will be paid a $0.59 dividend. This represents a $2.36 annualized dividend and a yield of 1.21%. The ex-dividend date of this dividend is Thursday, March 20th. Broadcom’s payout ratio is 113.46%.

Insider Activity at Broadcom

In other news, CEO Hock E. Tan sold 45,000 shares of the company’s stock in a transaction dated Tuesday, December 24th. The shares were sold at an average price of $239.96, for a total transaction of $10,798,200.00. Following the completion of the transaction, the chief executive officer now owns 842,836 shares of the company’s stock, valued at $202,246,926.56. This represents a 5.07 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Diane M. Bryant sold 15,000 shares of the company’s stock in a transaction dated Monday, December 23rd. The shares were sold at an average price of $226.68, for a total transaction of $3,400,200.00. Following the transaction, the director now directly owns 6,460 shares of the company’s stock, valued at approximately $1,464,352.80. This represents a 69.90 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 191,278 shares of company stock valued at $44,964,800. 2.00% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of AVGO. Centaurus Financial Inc. grew its holdings in shares of Broadcom by 10.1% during the 4th quarter. Centaurus Financial Inc. now owns 91,545 shares of the semiconductor manufacturer’s stock worth $21,224,000 after purchasing an additional 8,367 shares during the period. Wealthedge Investment Advisors LLC purchased a new stake in shares of Broadcom during the 4th quarter worth about $3,595,000. Anchor Pointe Wealth Management LLC purchased a new stake in shares of Broadcom during the 4th quarter worth about $494,000. Capstone Triton Financial Group LLC grew its holdings in shares of Broadcom by 1.5% during the 4th quarter. Capstone Triton Financial Group LLC now owns 5,873 shares of the semiconductor manufacturer’s stock worth $1,362,000 after purchasing an additional 87 shares during the period. Finally, Mattson Financial Services LLC boosted its holdings in Broadcom by 1,110.8% in the 4th quarter. Mattson Financial Services LLC now owns 17,460 shares of the semiconductor manufacturer’s stock worth $4,048,000 after acquiring an additional 16,018 shares during the period. 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.