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

Broadcom Inc. (NASDAQ:AVGO)’s stock price dropped 1.2% during mid-day trading on Monday. The stock traded as low as $321.87 and last traded at $322.23. Approximately 19,732,664 shares traded hands during mid-day trading, a decline of 21% from the average session volume of 24,841,568 shares. The stock had previously closed at $326.08.

Analyst Ratings Changes

AVGO has been the topic of a number of recent research reports. BNP Paribas Exane upped their target price on Broadcom from $675.00 to $715.00 and gave the company an “outperform” rating in a research report on Friday, September 4th. Weiss Ratings raised shares of Broadcom from a “buy (b-)” rating to a “buy (b)” rating in a research report on Thursday, October 8th. Arete Research lifted their price objective on shares of Broadcom from $488.00 to $530.00 and gave the company a “buy” rating in a research note on Tuesday, July 21st. The Goldman Sachs Group upped their price objective on shares of Broadcom from $525.00 to $540.00 and gave the company a “buy” rating in a report on Thursday, September 3rd. Finally, Sanford C. Bernstein reaffirmed a “buy” rating on shares of Broadcom in a report on Monday, September 21st. One equities research analyst has rated the stock with a Strong Buy rating, thirty-nine have given a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat, Broadcom currently has a consensus rating of “Moderate Buy” and an average price target of $530.52.

Broadcom Stock Performance

The firm has a fifty day moving average of $352.81 and a 200 day moving average of $366.96. The company has a debt-to-equity ratio of 0.57, a current ratio of 2.50 and a quick ratio of 2.29. The stock has a market capitalization of $1.54 trillion, a price-to-earnings ratio of 41.15 and a beta of 1.49.

Broadcom (NASDAQ:AVGO) last announced its quarterly earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.22 by $0.10. Broadcom had a return on equity of 48.33% and a net margin of 42.94%. The company had revenue of $29.59 billion during the quarter, compared to the consensus estimate of $29.24 billion. During the same period in the previous year, the company posted $1.69 earnings per share. Broadcom’s revenue for the quarter was up 85.5% on a year-over-year basis. On average, sell-side analysts anticipate that Broadcom Inc. will post 10.37 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Monday, September 21st were given a $0.65 dividend. The ex-dividend date was Monday, September 21st. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.8%. Broadcom’s payout ratio is 33.21%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in AVGO. State Street Corp boosted its position in Broadcom by 8.7% during the second quarter. State Street Corp now owns 208,031,610 shares of the semiconductor manufacturer’s stock worth $75,367,711,000 after acquiring an additional 16,651,378 shares during the last quarter. Bank of America Corp DE raised its holdings in Broadcom by 4.6% in the 2nd quarter. Bank of America Corp DE now owns 61,423,013 shares of the semiconductor manufacturer’s stock valued at $23,202,543,000 after acquiring an additional 2,685,916 shares during the last quarter. Wellington Management Group LLP raised its holdings in Broadcom by 3.8% in the 2nd quarter. Wellington Management Group LLP now owns 51,580,703 shares of the semiconductor manufacturer’s stock valued at $19,484,611,000 after acquiring an additional 1,892,721 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its stake in Broadcom by 2.9% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 40,180,530 shares of the semiconductor manufacturer’s stock worth $15,178,195,000 after purchasing an additional 1,140,598 shares in the last quarter. Finally, Legal & General Group Plc purchased a new position in Broadcom in the 2nd quarter worth approximately $11,998,148,000. Hedge funds and other institutional investors own 76.43% of the company’s stock.

About Broadcom

Broadcom Inc (NASDAQ: AVGO) is a global technology company that designs, develops and supplies semiconductor and infrastructure software products. Its semiconductor solutions support data center, networking, broadband, wireless communications, storage, industrial and other electronic applications.

The company’s semiconductor portfolio includes networking and switching components, custom accelerators, connectivity and wireless devices, broadband equipment, optical products, storage controllers and related infrastructure technologies.