Broadcom (NASDAQ:AVGO) Shares Up 0.1% – Should You Buy?

Shares of Broadcom Inc. (NASDAQ:AVGO) were up 0.1% during trading on Tuesday . The stock traded as high as $237.46 and last traded at $235.77. Approximately 4,644,241 shares were traded during mid-day trading, a decline of 85% from the average daily volume of 30,402,396 shares. The stock had previously closed at $235.58.

Analysts Set New Price Targets

AVGO has been the topic of several analyst reports. The Goldman Sachs Group raised their price objective on Broadcom from $185.00 to $190.00 and gave the stock a “buy” rating in a report on Friday, September 6th. William Blair began coverage on Broadcom in a research note on Wednesday, September 18th. They issued an “outperform” rating on the stock. Benchmark reaffirmed a “buy” rating and set a $255.00 price objective (up previously from $210.00) on shares of Broadcom in a research note on Friday, December 13th. Cantor Fitzgerald raised their target price on shares of Broadcom from $200.00 to $225.00 and gave the stock an “overweight” rating in a research report on Tuesday, October 8th. Finally, JPMorgan Chase & Co. upped their price target on shares of Broadcom from $210.00 to $250.00 and gave the stock an “overweight” rating in a research report on Friday, December 13th. Three analysts have rated the stock with a hold rating and twenty-four have issued a buy rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $221.88.

Broadcom Stock Down 1.6 %

The firm has a market capitalization of $1.09 trillion, a price-to-earnings ratio of 201.42, a PEG ratio of 2.15 and a beta of 1.13. The company has a current ratio of 1.04, a quick ratio of 0.94 and a debt-to-equity ratio of 1.02. The stock has a fifty day moving average of $188.87 and a 200-day moving average of $173.02.

Broadcom (NASDAQ:AVGO) last issued its quarterly earnings results on Thursday, December 12th. The semiconductor manufacturer reported $1.42 EPS for the quarter, beating the consensus estimate of $1.39 by $0.03. The business had revenue of $14.05 billion during the quarter, compared to the consensus estimate of $14.07 billion. Broadcom had a net margin of 10.88% and a return on equity of 30.12%. The firm’s quarterly revenue was up 51.2% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.98 EPS. As a group, sell-side analysts expect that Broadcom Inc. will post 3.79 EPS for the current year.

Broadcom Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, December 31st. Investors of record on Monday, December 23rd were given a dividend of $0.59 per share. This is a boost from Broadcom’s previous quarterly dividend of $0.53. The ex-dividend date of this dividend was Monday, December 23rd. This represents a $2.36 dividend on an annualized basis and a yield of 1.02%. Broadcom’s dividend payout ratio (DPR) is presently 191.87%.

Insider Activity

In related news, insider Charlie B. Kawwas sold 15,950 shares of the business’s stock in a transaction that occurred on Friday, October 11th. The stock was sold at an average price of $181.44, for a total value of $2,893,968.00. Following the completion of the sale, the insider now directly owns 737,330 shares in the company, valued at approximately $133,781,155.20. The trade was a 2.12 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Diane M. Bryant sold 15,000 shares of the firm’s stock in a transaction on Monday, December 23rd. The shares were sold at an average price of $226.68, for a total transaction of $3,400,200.00. Following the completion of the transaction, the director now owns 6,460 shares in the company, valued at $1,464,352.80. The trade was a 69.90 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 154,408 shares of company stock worth $33,412,228 in the last three months. 2.00% of the stock is owned by insiders.

Institutional Investors Weigh In On Broadcom

Several hedge funds have recently modified their holdings of AVGO. Independent Solutions Wealth Management LLC grew its position in Broadcom by 846.9% in the 3rd quarter. Independent Solutions Wealth Management LLC now owns 49,136 shares of the semiconductor manufacturer’s stock worth $8,476,000 after purchasing an additional 43,947 shares during the last quarter. Syntax Research Inc. lifted its position in shares of Broadcom by 882.8% in the 3rd quarter. Syntax Research Inc. now owns 6,899 shares of the semiconductor manufacturer’s stock worth $1,190,000 after acquiring an additional 6,197 shares during the period. SMART Wealth LLC acquired a new stake in shares of Broadcom during the 3rd quarter worth approximately $662,000. Lord Abbett & CO. LLC increased its position in shares of Broadcom by 762.8% during the third quarter. Lord Abbett & CO. LLC now owns 2,181,786 shares of the semiconductor manufacturer’s stock valued at $376,358,000 after purchasing an additional 1,928,907 shares during the period. Finally, B. Riley Wealth Advisors Inc. lifted its position in Broadcom by 624.8% in the third quarter. B. Riley Wealth Advisors Inc. now owns 138,687 shares of the semiconductor manufacturer’s stock worth $23,889,000 after purchasing an additional 119,553 shares during the period. 76.43% of the stock is owned by institutional investors.

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.