Broadcom (NASDAQ:AVGO) Stock Price Down 2.6% – Should You Sell?

Shares of Broadcom Inc. (NASDAQ:AVGO) dropped 2.6% during mid-day trading on Wednesday . The company traded as low as $182.62 and last traded at $183.44. Approximately 7,961,533 shares traded hands during mid-day trading, a decline of 72% from the average daily volume of 28,864,232 shares. The stock had previously closed at $188.26.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on AVGO. Jefferies Financial Group raised their target price on Broadcom from $205.00 to $225.00 and gave the company a “buy” rating in a research note on Friday, December 13th. Rosenblatt Securities restated a “buy” rating and set a $250.00 price objective on shares of Broadcom in a research report on Friday, March 7th. Citigroup boosted their target price on shares of Broadcom from $175.00 to $205.00 and gave the stock a “buy” rating in a report on Tuesday, December 10th. KeyCorp lifted their price target on shares of Broadcom from $260.00 to $275.00 and gave the stock an “overweight” rating in a research report on Friday, March 7th. Finally, Hsbc Global Res upgraded Broadcom to a “hold” rating in a research report on Tuesday, December 3rd. Three equities research analysts have rated the stock with a hold rating and twenty-five have issued a buy rating to the company. According to MarketBeat.com, Broadcom presently has an average rating of “Moderate Buy” and an average target price of $231.48.

Broadcom Stock Performance

The company has a market capitalization of $846.95 billion, a price-to-earnings ratio of 147.65, a price-to-earnings-growth ratio of 2.29 and a beta of 1.01. The firm has a 50-day simple moving average of $212.97 and a two-hundred day simple moving average of $196.00. The company has a current ratio of 1.17, a quick ratio of 1.07 and a debt-to-equity ratio of 0.98.

Broadcom Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, March 31st. Stockholders of record on Thursday, March 20th will be issued a dividend of $0.59 per share. The ex-dividend date of this dividend is Thursday, March 20th. This represents a $2.36 dividend on an annualized basis and a dividend yield of 1.31%. Broadcom’s dividend payout ratio is currently 113.46%.

Insider Transactions at Broadcom

In related news, Director Eddy W. Hartenstein sold 4,000 shares of the stock in a transaction that occurred on Wednesday, January 8th. The stock was sold at an average price of $229.64, for a total transaction of $918,560.00. Following the completion of the sale, the director now owns 46,400 shares in the company, valued at $10,655,296. This represents a 7.94 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Charlie B. Kawwas sold 40,000 shares of the business’s stock in a transaction on Thursday, January 2nd. The stock was sold at an average price of $231.98, for a total transaction of $9,279,200.00. Following the transaction, the insider now directly owns 696,730 shares in the company, valued at $161,627,425.40. This trade represents a 5.43 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 92,000 shares of company stock worth $21,494,560. 2.00% of the stock is owned by corporate insiders.

Institutional Trading of Broadcom

Several large investors have recently added to or reduced their stakes in the company. Fire Capital Management LLC bought a new stake in shares of Broadcom during the fourth quarter worth $1,490,000. Mascagni Wealth Management Inc. bought a new position in shares of Broadcom in the fourth quarter valued at about $823,000. Fairtree Asset Management Pty Ltd acquired a new position in Broadcom during the 4th quarter worth about $766,000. M1 Capital Management LLC bought a new stake in Broadcom during the 4th quarter worth about $646,000. Finally, DSG Capital Advisors LLC acquired a new stake in Broadcom in the 4th quarter valued at about $24,765,000. 76.43% of the stock is owned by institutional investors.

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.