Broadcom (NASDAQ:AVGO) Stock Price Up 0.3% on Better-Than-Expected Earnings

Broadcom Inc. (NASDAQ:AVGO)’s stock price rose 0.3% during mid-day trading on Thursday following a stronger than expected earnings report. The stock traded as high as $156.36 and last traded at $154.54. Approximately 5,988,369 shares changed hands during trading, a decline of 81% from the average daily volume of 30,940,967 shares. The stock had previously closed at $154.12.

The semiconductor manufacturer reported $1.24 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.20 by $0.04. Broadcom had a return on equity of 35.82% and a net margin of 24.10%. The firm had revenue of $13.07 billion during the quarter, compared to analysts’ expectations of $12.98 billion. During the same quarter last year, the business posted $0.95 earnings per share. The firm’s revenue was up 47.3% on a year-over-year basis.

Broadcom Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, September 30th. Stockholders of record on Thursday, September 19th will be issued a $0.53 dividend. This represents a $2.12 annualized dividend and a dividend yield of 1.55%. The ex-dividend date of this dividend is Thursday, September 19th. This is an increase from Broadcom’s previous quarterly dividend of $0.53. Broadcom’s payout ratio is 9.03%.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on AVGO. Morgan Stanley lifted their price target on shares of Broadcom from $176.00 to $180.00 and gave the company an “overweight” rating in a report on Friday. Jefferies Financial Group raised their price objective on Broadcom from $155.00 to $205.00 and gave the company a “buy” rating in a research report on Thursday, June 13th. Truist Financial boosted their target price on Broadcom from $156.60 to $204.50 and gave the stock a “buy” rating in a research report on Thursday, June 13th. Melius assumed coverage on Broadcom in a report on Monday, June 3rd. They set a “buy” rating and a $185.00 price target for the company. Finally, Barclays upped their price objective on Broadcom from $150.00 to $200.00 and gave the stock an “overweight” rating in a report on Thursday, June 13th. Two analysts have rated the stock with a hold rating and twenty-four have given a buy rating to the company. According to MarketBeat.com, Broadcom presently has an average rating of “Moderate Buy” and an average target price of $189.38.

Insider Buying and Selling at Broadcom

In other Broadcom news, Director Justine Page sold 2,540 shares of the firm’s stock in a transaction that occurred on Thursday, June 20th. The shares were sold at an average price of $175.03, for a total value of $444,566.04. Following the completion of the sale, the director now directly owns 27,480 shares in the company, valued at $4,809,714.48. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. In other Broadcom news, CEO Hock E. Tan sold 7,502 shares of the company’s stock in a transaction that occurred on Thursday, July 11th. The shares were sold at an average price of $1,705.95, for a total transaction of $12,798,036.90. Following the transaction, the chief executive officer now owns 138,191 shares in the company, valued at approximately $235,746,936.45. 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 2,540 shares of Broadcom stock in a transaction on Thursday, June 20th. The stock was sold at an average price of $175.03, for a total transaction of $444,566.04. Following the sale, the director now owns 27,480 shares of the company’s stock, valued at $4,809,714.48. The disclosure for this sale can be found here. Insiders own 2.00% of the company’s stock.

Institutional Trading of Broadcom

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Sanctuary Advisors LLC purchased a new position in shares of Broadcom in the second quarter worth about $123,475,000. Creekside Partners purchased a new position in shares of Broadcom during the second quarter worth $414,000. Brown Financial Advisors purchased a new position in shares of Broadcom during the second quarter worth $1,422,000. Strategic Investment Solutions Inc. IL acquired a new position in Broadcom during the second quarter valued at $369,000. Finally, Farmers National Bank boosted its stake in shares of Broadcom by 3.7% in the second quarter. Farmers National Bank now owns 5,919 shares of the semiconductor manufacturer’s stock worth $9,503,000 after buying an additional 211 shares during the last quarter. Institutional investors and hedge funds own 76.43% of the company’s stock.

Broadcom Trading Down 10.4 %

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 firm has a market cap of $637.70 billion, a PE ratio of 5.89, a price-to-earnings-growth ratio of 2.87 and a beta of 1.16. The company has a 50-day simple moving average of $189.48 and a 200 day simple moving average of $155.66.

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.