Broadcom’s (AVGO) “Buy” Rating Reaffirmed at Mizuho
“We believe investors should be taking a second look at AVGO. AVGO has underperformed the SOX but provides an attractive opportunity with a dominant market share, and a significant earnings and FCF machine AVGO reported an upside JulQ with 67.3% non-GAAP and guided to a stronger OctQ. With ~$6B in buybacks remaining, $8B+ of FCF, and a ~3%+ dividend yield, we believe AVGO is well positioned as it trades at <11x our conservative F19E EPS. Adjusting our estimates, reiterating our Buy and $280 PT.",” Mizuho’s analyst commented.
Several other research analysts have also recently commented on the company. BMO Capital Markets reiterated a hold rating and issued a $230.00 price target on shares of Broadcom in a research note on Friday. MKM Partners cut their price target on Broadcom to $255.00 in a research note on Friday. Sanford C. Bernstein set a $310.00 price target on Broadcom and gave the stock a buy rating in a research note on Friday. Canaccord Genuity reiterated a buy rating and issued a $335.00 price target (up previously from $300.00) on shares of Broadcom in a research note on Friday. Finally, Cowen boosted their price target on Broadcom from $245.00 to $255.00 and gave the stock an outperform rating in a research note on Friday. Two research analysts have rated the stock with a sell rating, nine have assigned a hold rating and twenty-seven have issued a buy rating to the company’s stock. Broadcom currently has a consensus rating of Buy and an average target price of $289.25.
Broadcom (NASDAQ:AVGO) last released its quarterly earnings results on Thursday, September 6th. The semiconductor manufacturer reported $4.98 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $4.82 by $0.16. Broadcom had a return on equity of 28.38% and a net margin of 58.18%. The business had revenue of $5.06 billion for the quarter, compared to analysts’ expectations of $5.06 billion. During the same quarter in the previous year, the firm posted $4.10 earnings per share. The company’s revenue was up 13.4% compared to the same quarter last year. equities research analysts predict that Broadcom will post 17.52 EPS for the current year.
The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 28th. Shareholders of record on Wednesday, September 19th will be paid a dividend of $1.75 per share. This represents a $7.00 annualized dividend and a yield of 3.01%. Broadcom’s payout ratio is currently 48.95%.
In other news, SVP Bryan Ingram sold 10,604 shares of the company’s stock in a transaction that occurred on Friday, June 15th. The stock was sold at an average price of $270.02, for a total transaction of $2,863,292.08. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Hock E. Tan sold 20,000 shares of the company’s stock in a transaction that occurred on Friday, June 15th. The shares were sold at an average price of $269.69, for a total value of $5,393,800.00. The disclosure for this sale can be found here. Insiders have sold 130,604 shares of company stock worth $31,572,092 in the last 90 days. 3.30% of the stock is currently owned by insiders.
Large investors have recently bought and sold shares of the company. Massey Quick Simon & CO. LLC bought a new position in shares of Broadcom during the second quarter valued at approximately $104,000. Zions Bancorporation bought a new position in Broadcom in the 2nd quarter worth approximately $109,000. MUFG Americas Holdings Corp bought a new position in Broadcom in the 2nd quarter worth approximately $109,000. MUFG Securities EMEA plc bought a new position in Broadcom in the 2nd quarter worth approximately $117,000. Finally, First Personal Financial Services bought a new position in Broadcom in the 2nd quarter worth approximately $126,000. 84.21% of the stock is owned by institutional investors.
Broadcom Company Profile
Broadcom Inc designs, develops, and supplies a range of 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 through four segments: Wired Infrastructure, Wireless Communications, Enterprise Storage, and Industrial & Other.
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