Broadcom (NASDAQ:AVGO) Shares Up 2.3% – Should You Buy?

Broadcom Inc. (NASDAQ:AVGO)’s share price rose 2.3% during mid-day trading on Tuesday . The company traded as high as $235.32 and last traded at $234.05. Approximately 4,500,794 shares changed hands during mid-day trading, a decline of 85% from the average daily volume of 31,003,117 shares. The stock had previously closed at $228.72.

Analyst Upgrades and Downgrades

AVGO has been the topic of a number of recent analyst reports. Barclays decreased their target price on Broadcom from $260.00 to $215.00 and set an “overweight” rating on the stock in a research report on Tuesday, April 22nd. Truist Financial lifted their price target on shares of Broadcom from $260.00 to $267.00 and gave the company a “buy” rating in a report on Friday, March 7th. Bank of America decreased their target price on shares of Broadcom from $260.00 to $240.00 and set a “buy” rating on the stock in a research note on Wednesday, April 16th. William Blair reaffirmed an “outperform” rating on shares of Broadcom in a research note on Friday, March 7th. Finally, 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. Three research analysts have rated the stock with a hold rating, twenty-five have issued a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $229.48.

Broadcom Price Performance

The stock has a market capitalization of $1.11 trillion, a P/E ratio of 192.50, a PEG ratio of 2.29 and a beta of 1.04. The business has a fifty day simple moving average of $191.49 and a 200-day simple moving average of $201.86. The company has a debt-to-equity ratio of 0.98, a quick ratio of 1.07 and a current ratio of 1.17.

Broadcom Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Monday, March 31st. Investors of record on Thursday, March 20th were paid a dividend of $0.59 per share. This represents a $2.36 annualized dividend and a yield of 1.00%. The ex-dividend date was Thursday, March 20th. Broadcom’s dividend payout ratio is presently 113.46%.

Broadcom declared that its board has initiated a share buyback program on Monday, April 7th that authorizes the company to buyback $10.00 billion in outstanding shares. This buyback authorization authorizes the semiconductor manufacturer to reacquire up to 1.4% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s board of directors believes its shares are undervalued.

Insider Transactions at Broadcom

In related news, Director Justine Page sold 800 shares of the firm’s stock in a transaction dated Monday, April 14th. The shares were sold at an average price of $185.00, for a total value of $148,000.00. Following the transaction, the director now owns 25,380 shares of the company’s stock, valued at approximately $4,695,300. This trade represents a 3.06% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Mark David Brazeal sold 30,000 shares of the firm’s stock in a transaction that occurred on Monday, March 24th. The shares were sold at an average price of $194.65, for a total value of $5,839,500.00. Following the completion of the transaction, the insider now owns 490,956 shares in the company, valued at $95,564,585.40. This represents a 5.76% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 720,576 shares of company stock valued at $131,249,694 in the last 90 days. 2.00% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Broadcom

Large investors have recently bought and sold shares of the stock. Mattson Financial Services LLC lifted its position in shares of Broadcom by 0.5% during the first quarter. Mattson Financial Services LLC now owns 17,555 shares of the semiconductor manufacturer’s stock valued at $2,939,000 after purchasing an additional 95 shares in the last quarter. WBI Investments LLC bought a new position in shares of Broadcom during the 1st quarter worth approximately $416,000. Indiana Trust & Investment Management Co lifted its holdings in Broadcom by 5.2% during the first quarter. Indiana Trust & Investment Management Co now owns 3,340 shares of the semiconductor manufacturer’s stock worth $559,000 after acquiring an additional 165 shares during the period. MBL Wealth LLC lifted its holdings in Broadcom by 24.8% during the first quarter. MBL Wealth LLC now owns 13,129 shares of the semiconductor manufacturer’s stock worth $2,198,000 after acquiring an additional 2,612 shares during the period. Finally, Acadian Asset Management LLC lifted its holdings in Broadcom by 72.6% during the first quarter. Acadian Asset Management LLC now owns 641,538 shares of the semiconductor manufacturer’s stock worth $107,394,000 after acquiring an additional 269,763 shares during the period. 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.