Broadcom (NASDAQ:AVGO) Upgraded to “Strong-Buy” at Hsbc Global Res

Hsbc Global Res upgraded shares of Broadcom (NASDAQ:AVGO) from a hold rating to a strong-buy rating in a research note released on Tuesday,Zacks.com reports.

A number of other analysts have also recently commented on the company. Bank of America upped their price target on Broadcom from $240.00 to $300.00 and gave the company a “buy” rating in a research note on Friday, June 6th. Truist Financial set a $295.00 price objective on shares of Broadcom and gave the company a “buy” rating in a report on Friday, June 6th. William Blair reiterated an “outperform” rating on shares of Broadcom in a report on Friday, March 7th. HSBC raised shares of Broadcom from a “hold” rating to a “buy” rating and set a $400.00 price target for the company in a report on Tuesday. Finally, UBS Group raised their price objective on Broadcom from $270.00 to $290.00 and gave the stock a “buy” rating in a research note on Friday, June 6th. Two investment analysts have rated the stock with a hold rating, twenty-six have given a buy rating and two have assigned a strong buy rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Buy” and an average target price of $281.25.

Broadcom Trading Up 3.9%

Shares of NASDAQ AVGO opened at $263.77 on Tuesday. Broadcom has a fifty-two week low of $128.50 and a fifty-two week high of $265.87. The firm has a market capitalization of $1.24 trillion, a P/E ratio of 98.79, a P/E/G ratio of 1.81 and a beta of 1.11. The company has a debt-to-equity ratio of 0.89, a current ratio of 1.08 and a quick ratio of 0.98. The company’s 50 day simple moving average is $223.68 and its 200 day simple moving average is $213.63.

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

Broadcom Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, June 30th. Shareholders of record on Friday, June 20th will be given a dividend of $0.59 per share. This represents a $2.36 annualized dividend and a yield of 0.89%. The ex-dividend date is Friday, June 20th. Broadcom’s dividend payout ratio (DPR) is currently 88.39%.

Broadcom declared that its Board of Directors has authorized a share repurchase program on Monday, April 7th that allows the company to buyback $10.00 billion in outstanding shares. This buyback authorization allows the semiconductor manufacturer to reacquire up to 1.4% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s leadership believes its shares are undervalued.

Insider Buying and Selling at Broadcom

In other Broadcom news, insider Mark David Brazeal sold 25,000 shares of the stock in a transaction dated 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 directly owns 465,956 shares of the company’s stock, valued at $83,872,080. This represents a 5.09% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Hock E. Tan sold 117,758 shares of the firm’s stock in a transaction that occurred on Thursday, June 12th. The stock was sold at an average price of $252.91, for a total transaction of $29,782,175.78. Following the sale, the chief executive officer now owns 1,014,152 shares of the company’s stock, valued at $256,489,182.32. This trade represents a 10.40% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 211,468 shares of company stock worth $51,519,450 over the last 90 days. Company insiders own 2.00% of the company’s stock.

Hedge Funds Weigh In On Broadcom

Institutional investors and hedge funds have recently made changes to their positions in the company. Norges Bank acquired a new stake in shares of Broadcom during the fourth quarter worth $16,893,010,000. Nuveen LLC bought a new position in Broadcom during the first quarter worth about $6,649,117,000. Price T Rowe Associates Inc. MD raised its stake in Broadcom by 37.8% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 65,509,579 shares of the semiconductor manufacturer’s stock worth $10,968,270,000 after purchasing an additional 17,985,046 shares in the last quarter. GAMMA Investing LLC boosted its holdings in Broadcom by 18,179.3% in the 1st quarter. GAMMA Investing LLC now owns 17,276,164 shares of the semiconductor manufacturer’s stock valued at $2,892,548,000 after purchasing an additional 17,181,652 shares during the period. Finally, GQG Partners LLC grew its position in shares of Broadcom by 200.0% during the 4th quarter. GQG Partners LLC now owns 10,213,160 shares of the semiconductor manufacturer’s stock worth $2,367,819,000 after purchasing an additional 6,809,245 shares in the last quarter. Institutional investors and hedge funds own 76.43% of the company’s stock.

About Broadcom

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.