Broadcom (NASDAQ:AVGO) Shares Up 3.6% – What’s Next?

Broadcom Inc. (NASDAQ:AVGO)’s share price traded up 3.6% on Tuesday . The company traded as high as $265.87 and last traded at $262.94. 10,197,035 shares changed hands during mid-day trading, a decline of 65% from the average session volume of 29,357,573 shares. The stock had previously closed at $253.77.

Analysts Set New Price Targets

A number of research analysts have recently issued reports on the stock. Barclays lifted their price objective on shares of Broadcom from $215.00 to $265.00 and gave the company an “overweight” rating in a report on Monday, June 9th. HSBC raised Broadcom from a “hold” rating to a “buy” rating and set a $400.00 price objective for the company in a report on Tuesday. William Blair restated an “outperform” rating on shares of Broadcom in a report on Friday, March 7th. Erste Group Bank upgraded Broadcom from a “hold” rating to a “buy” rating in a report on Thursday, June 5th. Finally, Mizuho increased their price target on Broadcom from $300.00 to $310.00 and gave the company an “outperform” rating in a research report on Friday, June 6th. Three equities research analysts have rated the stock with a hold rating, twenty-six have given a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat.com, Broadcom presently has an average rating of “Moderate Buy” and a consensus price target of $281.25.

Broadcom Stock Up 3.1%

The company has a debt-to-equity ratio of 0.89, a quick ratio of 0.98 and a current ratio of 1.08. The firm has a market capitalization of $1.23 trillion, a P/E ratio of 97.95, a PEG ratio of 1.78 and a beta of 1.11. The stock has a 50 day moving average of $221.98 and a 200-day moving average of $213.28.

Broadcom (NASDAQ:AVGO) last posted its quarterly earnings results on Thursday, June 5th. The semiconductor manufacturer reported $1.58 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.57 by $0.01. The company had revenue of $15 billion for the quarter, compared to analyst estimates of $14.98 billion. Broadcom had a net margin of 22.64% and a return on equity of 35.49%. The company’s quarterly revenue was up 20.2% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $10.96 earnings per share. Research analysts predict that Broadcom Inc. will post 5.38 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, June 30th. Stockholders of record on Friday, June 20th will be issued a $0.59 dividend. This represents a $2.36 dividend on an annualized basis and a dividend yield of 0.90%. The ex-dividend date of this dividend is Friday, June 20th. Broadcom’s payout ratio is currently 88.39%.

Broadcom announced that its board has initiated a share repurchase plan on Monday, April 7th that authorizes the company to buyback $10.00 billion in outstanding shares. This buyback authorization authorizes the semiconductor manufacturer to repurchase up to 1.4% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s board believes its stock is undervalued.

Insider Activity at Broadcom

In other news, insider Mark David Brazeal sold 25,000 shares of the company’s stock in a transaction on Friday, April 11th. The shares were sold at an average price of $180.00, for a total value of $4,500,000.00. Following the transaction, the insider now owns 465,956 shares of the company’s stock, valued at approximately $83,872,080. This represents a 5.09% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Henry Samueli sold 663,976 shares of Broadcom stock in a transaction on Wednesday, March 26th. The shares were sold at an average price of $181.60, for a total value of $120,578,041.60. Following the sale, the director now directly owns 38,798,721 shares of the company’s stock, valued at $7,045,847,733.60. This represents a 1.68% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 875,444 shares of company stock worth $172,097,492. 2.00% of the stock is owned by company insiders.

Hedge Funds Weigh In On Broadcom

Institutional investors have recently added to or reduced their stakes in the business. Peterson Wealth Management boosted its position in shares of Broadcom by 2.2% during the 1st quarter. Peterson Wealth Management now owns 8,425 shares of the semiconductor manufacturer’s stock valued at $1,411,000 after acquiring an additional 179 shares during the last quarter. Kondo Wealth Advisors Inc. increased its position in shares of Broadcom by 6.5% in the first quarter. Kondo Wealth Advisors Inc. now owns 1,282 shares of the semiconductor manufacturer’s stock worth $215,000 after purchasing an additional 78 shares during the last quarter. 1248 Management LLC raised its stake in Broadcom by 312.4% in the first quarter. 1248 Management LLC now owns 6,239 shares of the semiconductor manufacturer’s stock valued at $1,045,000 after purchasing an additional 4,726 shares in the last quarter. First Long Island Investors LLC lifted its position in Broadcom by 8,264.5% during the first quarter. First Long Island Investors LLC now owns 76,117 shares of the semiconductor manufacturer’s stock valued at $12,744,000 after purchasing an additional 75,207 shares during the last quarter. Finally, Nicola Wealth Management LTD. grew its stake in Broadcom by 18.2% in the 1st quarter. Nicola Wealth Management LTD. now owns 128,800 shares of the semiconductor manufacturer’s stock worth $21,565,000 after buying an additional 19,800 shares in the last quarter. 76.43% of the stock is currently 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.