Broadcom (NASDAQ:AVGO) Stock Price Up 1.2% – What’s Next?

Broadcom Inc. (NASDAQ:AVGO)’s stock price rose 1.2% during trading on Wednesday . The stock traded as high as $255.64 and last traded at $252.35. Approximately 6,215,280 shares changed hands during mid-day trading, a decline of 79% from the average daily volume of 29,987,987 shares. The stock had previously closed at $249.37.

Analyst Upgrades and Downgrades

AVGO has been the topic of a number of analyst reports. Rosenblatt Securities lifted their price objective on Broadcom from $223.00 to $340.00 and gave the company a “buy” rating in a research report on Friday, June 6th. KeyCorp increased their target price on Broadcom from $260.00 to $275.00 and gave the stock an “overweight” rating in a research report on Friday, March 7th. Erste Group Bank upgraded shares of Broadcom from a “hold” rating to a “buy” rating in a research report on Thursday, June 5th. Evercore ISI reiterated an “outperform” rating and issued a $304.00 price target (up from $267.00) on shares of Broadcom in a report on Friday, June 6th. Finally, Morgan Stanley increased their price objective on shares of Broadcom from $260.00 to $270.00 and gave the company an “overweight” rating in a report on Friday, June 6th. Three analysts have rated the stock with a hold rating, twenty-five have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $276.09.

Broadcom Stock Performance

The company has a market cap of $1.18 trillion, a PE ratio of 94.10, a P/E/G ratio of 1.79 and a beta of 1.11. The company has a quick ratio of 0.98, a current ratio of 1.08 and a debt-to-equity ratio of 0.89. The stock’s 50 day simple moving average is $219.11 and its two-hundred day simple moving average is $211.61.

Broadcom (NASDAQ:AVGO) last issued its quarterly earnings data 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. Broadcom had a net margin of 22.64% and a return on equity of 35.49%. The company had revenue of $15 billion during the quarter, compared to the consensus estimate of $14.98 billion. During the same quarter last year, the company earned $10.96 earnings per share. Broadcom’s revenue for the quarter was up 20.2% on a year-over-year basis. As a group, research analysts anticipate that Broadcom Inc. will post 5.38 earnings per share for the current year.

Broadcom Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, June 30th. Investors of record on Friday, June 20th will be given a dividend of $0.59 per share. The ex-dividend date of this dividend is Friday, June 20th. This represents a $2.36 dividend on an annualized basis and a yield of 0.94%. Broadcom’s dividend payout ratio is currently 88.39%.

Broadcom announced that its board has authorized a stock repurchase program on Monday, April 7th that authorizes the company to repurchase $10.00 billion in shares. This repurchase authorization authorizes the semiconductor manufacturer to reacquire up to 1.4% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company’s leadership believes its stock is undervalued.

Insider Activity

In other Broadcom news, insider Charlie B. Kawwas sold 10,000 shares of the business’s stock in a transaction dated Wednesday, June 11th. The shares were sold at an average price of $252.88, for a total value of $2,528,800.00. Following the completion of the transaction, the insider now directly owns 789,784 shares of the company’s stock, valued at approximately $199,720,577.92. The trade was a 1.25% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Mark David Brazeal sold 30,000 shares of Broadcom stock in a transaction on Monday, March 24th. The stock was sold at an average price of $194.65, for a total transaction of $5,839,500.00. Following the sale, the insider now directly owns 490,956 shares of the company’s stock, 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 sold 849,134 shares of company stock worth $163,760,949 over the last three months. Corporate insiders own 2.00% of the company’s stock.

Institutional Investors Weigh In On Broadcom

Several large investors have recently bought and sold shares of AVGO. Barnes Dennig Private Wealth Management LLC bought a new stake in shares of Broadcom in the first quarter worth about $25,000. Cheviot Value Management LLC acquired a new position in shares of Broadcom in the 1st quarter valued at approximately $25,000. Canton Hathaway LLC bought a new stake in Broadcom during the 4th quarter worth approximately $26,000. Rialto Wealth Management LLC bought a new stake in Broadcom during the 4th quarter worth approximately $26,000. Finally, Inlight Wealth Management LLC acquired a new stake in Broadcom during the 1st quarter worth approximately $26,000. Institutional investors own 76.43% of the company’s stock.

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.