Broadcom (NASDAQ:AVGO) Shares Down 0.9% – What’s Next?

Broadcom Inc. (NASDAQ:AVGO)’s share price fell 0.9% during trading on Monday . The company traded as low as $213.51 and last traded at $219.34. 9,985,169 shares changed hands during mid-day trading, a decline of 68% from the average session volume of 30,754,787 shares. The stock had previously closed at $221.27.

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on the stock. Cantor Fitzgerald raised their price target 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. Mizuho raised their target price on shares of Broadcom from $245.00 to $260.00 and gave the stock an “outperform” rating in a report on Friday, January 10th. Citigroup upped their target price on Broadcom from $175.00 to $205.00 and gave the company a “buy” rating in a report on Tuesday, December 10th. Morgan Stanley cut their price target on Broadcom from $265.00 to $246.00 and set an “overweight” rating on the stock in a report on Tuesday, January 28th. Finally, UBS Group upped their price objective on Broadcom from $170.00 to $200.00 and gave the stock a “buy” rating in a research note on Monday, November 4th. Three investment 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.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $225.04.

Broadcom Price Performance

The company has a market cap of $1.02 trillion, a price-to-earnings ratio of 177.76, a PEG ratio of 2.31 and a beta of 1.02. The company’s 50 day moving average price is $213.41 and its 200-day moving average price is $182.20. The company has a debt-to-equity ratio of 0.98, a quick ratio of 1.07 and a current ratio of 1.17.

Broadcom (NASDAQ:AVGO) last posted its quarterly earnings results on Thursday, December 12th. The semiconductor manufacturer reported $1.42 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.39 by $0.03. The company had revenue of $14.05 billion for the quarter, compared to analysts’ expectations of $14.07 billion. Broadcom had a return on equity of 28.00% and a net margin of 11.43%. The firm’s revenue was up 51.2% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.98 earnings per share. On average, equities research analysts forecast that Broadcom Inc. will post 5.38 earnings per share for the current fiscal year.

Broadcom Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, December 31st. Investors of record on Monday, December 23rd were paid a $0.59 dividend. 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 1.08%. This is a boost from Broadcom’s previous quarterly dividend of $0.53. Broadcom’s dividend payout ratio (DPR) is currently 192.50%.

Insiders Place Their Bets

In related news, Director Check Kian Low sold 48,000 shares of the company’s stock in a transaction that occurred on Monday, January 6th. The shares were sold at an average price of $235.35, for a total value of $11,296,800.00. Following the completion of the sale, the director now owns 113,050 shares in the company, valued at approximately $26,606,317.50. This represents a 29.80 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Harry L. You sold 6,540 shares of the firm’s stock in a transaction that occurred on Tuesday, December 17th. The stock was sold at an average price of $240.00, for a total transaction of $1,569,600.00. Following the completion of the transaction, the director now directly owns 30,450 shares of the company’s stock, valued at $7,308,000. This represents a 17.68 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 191,278 shares of company stock worth $44,964,800. Company insiders own 2.00% of the company’s stock.

Institutional Investors Weigh In On Broadcom

Several hedge funds have recently bought and sold shares of AVGO. AMF Tjanstepension AB boosted its holdings in shares of Broadcom by 856.9% during the third quarter. AMF Tjanstepension AB now owns 1,014,616 shares of the semiconductor manufacturer’s stock worth $175,101,000 after purchasing an additional 908,585 shares during the period. Czech National Bank lifted its position in Broadcom by 1,042.3% in the 3rd quarter. Czech National Bank now owns 948,249 shares of the semiconductor manufacturer’s stock worth $163,573,000 after buying an additional 865,238 shares in the last quarter. GAMMA Investing LLC grew its holdings in shares of Broadcom by 1,136.4% during the 3rd quarter. GAMMA Investing LLC now owns 85,610 shares of the semiconductor manufacturer’s stock valued at $14,768,000 after acquiring an additional 78,686 shares in the last quarter. WealthBridge Capital Management LLC increased its stake in shares of Broadcom by 986.0% in the third quarter. WealthBridge Capital Management LLC now owns 3,801 shares of the semiconductor manufacturer’s stock worth $656,000 after acquiring an additional 3,451 shares during the last quarter. Finally, Azzad Asset Management Inc. ADV raised its holdings in shares of Broadcom by 806.0% during the third quarter. Azzad Asset Management Inc. ADV now owns 36,774 shares of the semiconductor manufacturer’s stock worth $6,344,000 after acquiring an additional 32,715 shares in the last quarter. 76.43% of the stock is owned by hedge funds and other 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.