Investors Purchase Large Volume of Broadcom Call Options (NASDAQ:AVGO)

Broadcom Inc. (NASDAQ:AVGO) was the target of some unusual options trading on Wednesday. Investors acquired 363,397 call options on the company. This represents an increase of approximately 14% compared to the typical volume of 319,826 call options.

Insider Buying and Selling at Broadcom

In other Broadcom news, Director Gayla J. Delly sold 1,000 shares of the company’s stock in a transaction dated Thursday, April 9th. The shares were sold at an average price of $358.31, for a total value of $358,310.00. Following the transaction, the director directly owned 32,352 shares in the company, valued at approximately $11,592,045.12. This represents a 3.00% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Mark David Brazeal sold 4,825 shares of the business’s stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $394.91, for a total value of $1,905,440.75. Following the completion of the transaction, the insider owned 269,989 shares of the company’s stock, valued at $106,621,355.99. This trade represents a 1.76% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 36,014 shares of company stock worth $13,174,907. 1.90% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in AVGO. ROSS JOHNSON & Associates LLC increased its stake in shares of Broadcom by 1,320.0% during the fourth quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer’s stock worth $25,000 after purchasing an additional 66 shares during the period. Networth Advisors LLC increased its stake in Broadcom by 546.2% in the first quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer’s stock valued at $26,000 after acquiring an additional 71 shares during the last quarter. SWAN Capital LLC lifted its position in shares of Broadcom by 261.9% during the 4th quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer’s stock worth $26,000 after buying an additional 55 shares during the last quarter. Miller Global Investments LLC bought a new stake in shares of Broadcom during the 4th quarter valued at approximately $31,000. Finally, Nvest Wealth Strategies Inc. acquired a new stake in shares of Broadcom during the 4th quarter valued at $33,000. Institutional investors and hedge funds own 76.43% of the company’s stock.

Broadcom Stock Performance

Shares of NASDAQ AVGO traded up $21.36 during trading hours on Wednesday, reaching $392.14. The stock had a trading volume of 18,347,242 shares, compared to its average volume of 26,388,904. The company has a debt-to-equity ratio of 0.71, a current ratio of 2.24 and a quick ratio of 2.01. The business’s fifty day moving average is $405.96 and its two-hundred day moving average is $363.03. Broadcom has a twelve month low of $269.58 and a twelve month high of $495.00. The company has a market cap of $1.87 trillion, a price-to-earnings ratio of 65.50, a PEG ratio of 0.66 and a beta of 1.45.

Broadcom (NASDAQ:AVGO) last posted its earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, topping the consensus estimate of $2.40 by $0.04. The business had revenue of $22.19 billion during the quarter, compared to the consensus estimate of $22.13 billion. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.Broadcom’s revenue was up 47.9% on a year-over-year basis. During the same quarter last year, the company earned $1.58 EPS. As a group, research analysts expect that Broadcom will post 10.24 EPS for the current year.

Broadcom Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 22nd were issued a $0.65 dividend. This represents a $2.60 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date was Monday, June 22nd. Broadcom’s dividend payout ratio is currently 43.33%.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Apple’s $30 billion+ commitment gives Broadcom a larger, longer-term customer revenue stream and reinforces demand for its custom silicon and networking products. Reuters: Apple to spend $30 billion in Broadcom chips deal that will see Colorado factory expand
• Positive Sentiment: Investors are increasingly focused on Broadcom’s AI opportunity, with articles highlighting the company’s large addressable market and potential for continued growth in AI infrastructure. AOL: Broadcom’s $200 Billion AI Opportunity Is Drawing New Interest From Investors
• Neutral Sentiment: UBS said Broadcom and other semiconductor names have pulled back from recent highs, which may be creating a more attractive entry point for investors rather than signaling a change in fundamentals. Benzinga: Micron, Broadcom Just Got 25% Cheaper — And Chip Stocks Are ‘Far From Bubble Territory’, UBS Says
• Neutral Sentiment: Some recent commentary points to technical bounce potential and continued AI-chip demand, though it does not add new business-specific catalysts. CNBC: A breakout in Broadcom may be forming. How to trade it if it materializes
• Negative Sentiment: Despite the Apple deal, some coverage notes Broadcom has been under pressure recently, with one analyst downgrade and earlier concerns about near-term guidance weighing on sentiment. Yahoo Finance: This Analyst Just Downgraded Broadcom Stock. Here’s Why

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on the company. Erste Group Bank reiterated a “hold” rating on shares of Broadcom in a report on Tuesday. Wall Street Zen upgraded shares of Broadcom from a “buy” rating to a “strong-buy” rating in a research note on Wednesday, July 1st. Deutsche Bank Aktiengesellschaft restated a “buy” rating and issued a $515.00 target price (up from $430.00) on shares of Broadcom in a research report on Thursday, June 4th. The Goldman Sachs Group reaffirmed a “buy” rating and issued a $525.00 price objective on shares of Broadcom in a research note on Thursday, June 4th. Finally, DA Davidson upped their price objective on shares of Broadcom from $375.00 to $400.00 and gave the company a “neutral” rating in a research note on Thursday, June 4th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $493.24.

About Broadcom

Broadcom Inc (NASDAQ: AVGO) is a global technology company that designs, develops and supplies semiconductor and infrastructure software solutions for a broad range of markets. The company’s semiconductor business provides components and systems for wired and wireless communications, enterprise and cloud storage, networking and broadband access, serving original equipment manufacturers, cloud service providers, telecommunications carriers and industrial customers worldwide. Broadcom is headquartered in Irvine, California, and operates globally with research, development and sales organizations across North America, Europe and Asia.

On the semiconductor side, Broadcom’s portfolio includes system-on-chip (SoC) and application-specific integrated circuit (ASIC) solutions, radio-frequency and connectivity components, Ethernet switching and PHY devices, storage adapters and controllers, optical transceivers and other networking silicon.