Broadcom (NASDAQ:AVGO) Trading Up 2.1% – Here’s What Happened

Broadcom Inc. (NASDAQ:AVGO)’s stock price was up 2.1% during trading on Monday . The company traded as high as $253.08 and last traded at $253.82. Approximately 6,232,249 shares changed hands during mid-day trading, a decline of 79% from the average daily volume of 30,290,542 shares. The stock had previously closed at $248.70.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on AVGO. Barclays increased their price target on Broadcom from $215.00 to $265.00 and gave the stock an “overweight” rating in a report on Monday, June 9th. UBS Group increased their target price on shares of Broadcom from $270.00 to $290.00 and gave the stock a “buy” rating in a research note on Friday, June 6th. Evercore ISI reissued an “outperform” rating and set a $304.00 target price (up from $267.00) on shares of Broadcom in a research note on Friday, June 6th. Wells Fargo & Company increased their target price on shares of Broadcom from $230.00 to $255.00 and gave the stock an “equal weight” rating in a research note on Friday, June 6th. Finally, Wall Street Zen lowered shares of Broadcom from a “buy” rating to a “hold” rating in a research note on Sunday. Three investment analysts have rated the stock with a hold rating, twenty-five have issued a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat.com, Broadcom presently has a consensus rating of “Moderate Buy” and a consensus target price of $276.09.

Broadcom Price Performance

The company has a quick ratio of 1.07, a current ratio of 1.17 and a debt-to-equity ratio of 0.98. The business’s 50-day moving average is $213.01 and its two-hundred day moving average is $209.85. The company has a market capitalization of $1.19 trillion, a P/E ratio of 205.72, a price-to-earnings-growth ratio of 2.29 and a beta of 1.11.

Broadcom (NASDAQ:AVGO) last released 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 net margin of 11.43% and a return on equity of 28.00%. The company had revenue of $15 billion for the quarter, compared to analyst estimates of $14.98 billion. During the same period last year, the firm earned $10.96 earnings per share. The firm’s revenue was up 20.2% on a year-over-year basis. As a group, analysts predict 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 issued 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 0.93%. Broadcom’s dividend payout ratio (DPR) is presently 88.39%.

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

Insider Buying and Selling

In related news, insider Charlie B. Kawwas sold 10,000 shares of the business’s stock in a transaction that occurred on Wednesday, June 11th. The shares were sold at an average price of $252.88, for a total transaction of $2,528,800.00. Following the completion of the transaction, the insider now 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 Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Henry Samueli sold 663,976 shares of the business’s stock in a transaction that occurred on Wednesday, March 26th. The shares were sold at an average price of $181.60, for a total transaction of $120,578,041.60. Following the transaction, the director now directly owns 38,798,721 shares of the company’s stock, valued at approximately $7,045,847,733.60. This represents a 1.68% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 730,576 shares of company stock worth $133,778,494. Insiders own 2.00% of the company’s stock.

Hedge Funds Weigh In On Broadcom

Several hedge funds have recently bought and sold shares of the company. Barnes Dennig Private Wealth Management LLC purchased a new position in Broadcom in the 1st quarter worth approximately $25,000. Cheviot Value Management LLC purchased a new position in Broadcom in the 1st quarter worth approximately $25,000. Canton Hathaway LLC purchased a new position in Broadcom in the 4th quarter worth approximately $26,000. Rialto Wealth Management LLC purchased a new position in Broadcom in the 4th quarter worth approximately $26,000. Finally, Inlight Wealth Management LLC purchased a new position in Broadcom in the 1st quarter worth approximately $26,000. Hedge funds and other 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.