Broadcom (NASDAQ:AVGO) Shares Down 0.7% After Insider Selling

Broadcom Inc. (NASDAQ:AVGO) shares dropped 0.7% during mid-day trading on Tuesday following insider selling activity. The stock traded as low as $1,577.01 and last traded at $1,580.56. Approximately 1,383,668 shares traded hands during mid-day trading, a decline of 55% from the average daily volume of 3,106,957 shares. The stock had previously closed at $1,592.21.

Specifically, insider Mark David Brazeal sold 2,500 shares of the stock in a transaction dated Thursday, March 28th. The stock was sold at an average price of $1,318.97, for a total value of $3,297,425.00. Following the completion of the transaction, the insider now owns 46,974 shares of the company’s stock, valued at $61,957,296.78. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. In related news, insider Mark David Brazeal sold 2,500 shares of the stock in a transaction dated Thursday, March 28th. The stock was sold at an average price of $1,318.97, for a total value of $3,297,425.00. Following the completion of the transaction, the insider now owns 46,974 shares of the company’s stock, valued at $61,957,296.78. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Justine Page sold 254 shares of the stock in a transaction dated Thursday, June 20th. The shares were sold at an average price of $1,750.26, for a total value of $444,566.04. Following the completion of the transaction, the director now directly owns 2,748 shares of the company’s stock, valued at approximately $4,809,714.48. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 12,864 shares of company stock valued at $17,251,391. Insiders own 2.00% of the company’s stock.

Wall Street Analysts Forecast Growth

AVGO has been the topic of a number of research analyst reports. UBS Group increased their target price on Broadcom from $1,610.00 to $1,735.00 and gave the stock a “buy” rating in a report on Thursday, June 13th. Mizuho increased their target price on Broadcom from $1,625.00 to $1,900.00 and gave the stock a “buy” rating in a report on Thursday, June 13th. JPMorgan Chase & Co. increased their target price on Broadcom from $1,700.00 to $2,000.00 and gave the stock an “overweight” rating in a report on Thursday, June 13th. Cantor Fitzgerald increased their target price on Broadcom from $1,300.00 to $1,600.00 and gave the stock an “overweight” rating in a report on Monday, March 4th. Finally, Melius Research initiated coverage on Broadcom in a report on Monday, June 3rd. They set a “buy” rating and a $1,850.00 target price on the stock. Three investment analysts have rated the stock with a hold rating and twenty-six have given a buy rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $1,673.04.

Broadcom Trading Down 0.7 %

The company has a current ratio of 1.25, a quick ratio of 1.16 and a debt-to-equity ratio of 1.02. The stock has a market capitalization of $735.84 billion, a price-to-earnings ratio of 67.99, a PEG ratio of 2.90 and a beta of 1.17. The firm has a 50-day moving average of $1,412.94 and a 200 day moving average of $1,294.23.

Broadcom shares are set to split on Monday, July 15th. The 10-1 split was announced on Wednesday, June 12th. The newly minted shares will be issued to shareholders after the market closes on Friday, July 12th.

Broadcom (NASDAQ:AVGO) last issued its quarterly earnings results on Wednesday, June 12th. The semiconductor manufacturer reported $10.96 earnings per share (EPS) for the quarter, beating the consensus estimate of $10.78 by $0.18. Broadcom had a return on equity of 35.82% and a net margin of 24.10%. The company had revenue of $12.49 billion for the quarter, compared to analysts’ expectations of $12.06 billion. During the same period last year, the firm earned $9.51 EPS. The firm’s revenue for the quarter was up 43.0% on a year-over-year basis. As a group, equities analysts predict that Broadcom Inc. will post 36.87 EPS for the current fiscal year.

Broadcom Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, June 28th. Stockholders of record on Monday, June 24th will be given a dividend of $5.25 per share. This represents a $21.00 annualized dividend and a dividend yield of 1.33%. The ex-dividend date is Monday, June 24th. Broadcom’s dividend payout ratio (DPR) is presently 90.32%.

Institutional Investors Weigh In On Broadcom

Large investors have recently modified their holdings of the stock. Pathway Financial Advisors LLC boosted its stake in shares of Broadcom by 11.1% during the 4th quarter. Pathway Financial Advisors LLC now owns 933 shares of the semiconductor manufacturer’s stock worth $1,041,000 after acquiring an additional 93 shares in the last quarter. Todd Asset Management LLC boosted its stake in shares of Broadcom by 26.3% during the 4th quarter. Todd Asset Management LLC now owns 79,765 shares of the semiconductor manufacturer’s stock worth $89,038,000 after acquiring an additional 16,608 shares in the last quarter. Benjamin Edwards Inc. boosted its stake in shares of Broadcom by 3.0% during the 4th quarter. Benjamin Edwards Inc. now owns 3,141 shares of the semiconductor manufacturer’s stock worth $3,506,000 after acquiring an additional 91 shares in the last quarter. Barry Investment Advisors LLC bought a new stake in shares of Broadcom during the 4th quarter worth $228,000. Finally, Stegent Equity Advisors Inc. bought a new stake in shares of Broadcom during the 4th quarter worth $271,000. 76.43% of the stock is owned by institutional investors.

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.