Broadcom (NASDAQ:AVGO) Trading Down 3.2% – What’s Next?

Broadcom Inc. (NASDAQ:AVGO)’s share price dropped 3.2% during trading on Thursday . The company traded as low as $330.50 and last traded at $332.4790. Approximately 24,127,985 shares were traded during mid-day trading, a decline of 5% from the average daily volume of 25,507,732 shares. The stock had previously closed at $343.50.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on AVGO. KeyCorp reaffirmed an “overweight” rating and set a $500.00 price target (up from $460.00) on shares of Broadcom in a research note on Friday, December 12th. Piper Sandler reissued an “overweight” rating and set a $430.00 price objective (up previously from $375.00) on shares of Broadcom in a report on Friday, December 12th. Oppenheimer upped their target price on shares of Broadcom from $435.00 to $450.00 and gave the stock an “outperform” rating in a research report on Friday, December 12th. UBS Group set a $475.00 price target on Broadcom and gave the stock a “buy” rating in a report on Monday, December 15th. Finally, Rosenblatt Securities raised their price objective on Broadcom from $400.00 to $440.00 and gave the company a “buy” rating in a research note on Tuesday, December 9th. Three research analysts have rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of “Buy” and a consensus target price of $436.89.

Broadcom Price Performance

The company has a 50-day moving average of $361.10 and a two-hundred day moving average of $329.81. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.71 and a quick ratio of 1.58. The stock has a market capitalization of $1.58 trillion, a PE ratio of 69.85, a P/E/G ratio of 1.16 and a beta of 1.21.

Broadcom (NASDAQ:AVGO) last posted its quarterly earnings data on Thursday, December 11th. The semiconductor manufacturer reported $1.95 EPS for the quarter, beating analysts’ consensus estimates of $1.87 by $0.08. Broadcom had a net margin of 36.20% and a return on equity of 37.45%. The company had revenue of $18.02 billion during the quarter, compared to the consensus estimate of $17.46 billion. During the same quarter in the prior year, the company posted $1.42 EPS. The company’s quarterly revenue was up 28.2% compared to the same quarter last year. Sell-side analysts predict that Broadcom Inc. will post 5.38 EPS for the current fiscal year.

Broadcom Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, December 31st. Stockholders of record on Monday, December 22nd were issued a dividend of $0.65 per share. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date was Monday, December 22nd. This is a positive change from Broadcom’s previous quarterly dividend of $0.59. Broadcom’s payout ratio is currently 54.62%.

Insider Transactions at Broadcom

In other news, CFO Kirsten M. Spears sold 30,000 shares of the firm’s stock in a transaction dated Wednesday, December 31st. The stock was sold at an average price of $347.82, for a total value of $10,434,600.00. Following the transaction, the chief financial officer directly owned 277,237 shares in the company, valued at $96,428,573.34. This trade represents a 9.76% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Henry Samueli sold 320,316 shares of Broadcom stock in a transaction dated Monday, December 8th. The shares were sold at an average price of $400.53, for a total value of $128,296,167.48. Following the completion of the transaction, the director directly owned 37,326,540 shares in the company, valued at $14,950,399,066.20. This represents a 0.85% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 680,701 shares of company stock valued at $249,624,757 in the last ninety days. Company insiders own 2.00% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of AVGO. Miller Global Investments LLC bought a new stake in Broadcom during the fourth quarter worth approximately $31,000. Sawyer & Company Inc lifted its holdings in Broadcom by 62.1% in the 2nd quarter. Sawyer & Company Inc now owns 94 shares of the semiconductor manufacturer’s stock valued at $26,000 after acquiring an additional 36 shares during the last quarter. JCIC Asset Management Inc. bought a new stake in shares of Broadcom in the 3rd quarter worth approximately $31,000. Longfellow Investment Management Co. LLC acquired a new stake in Broadcom during the second quarter valued at approximately $27,000. Finally, Teachers Insurance & Annuity Association of America acquired a new stake in Broadcom during the second quarter valued at approximately $28,000. Hedge funds and other institutional investors own 76.43% of the company’s stock.

Broadcom Company Profile

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.