Broadcom (NASDAQ:AVGO) Stock Price Up 2.1% – Still a Buy?

Broadcom Inc. (NASDAQ:AVGO) shot up 2.1% on Wednesday . The company traded as high as $199.98 and last traded at $194.05. 11,175,607 shares were traded during mid-day trading, a decline of 62% from the average session volume of 29,462,014 shares. The stock had previously closed at $190.09.

Analyst Ratings Changes

A number of research firms have weighed in on AVGO. Truist Financial upped their price target on Broadcom from $260.00 to $267.00 and gave the stock a “buy” rating in a report on Friday, March 7th. Hsbc Global Res upgraded Broadcom to a “hold” rating in a report on Tuesday, December 3rd. Piper Sandler upped their target price on Broadcom from $200.00 to $250.00 and gave the company an “overweight” rating in a research report on Friday, December 13th. JPMorgan Chase & Co. upped their target price on Broadcom from $210.00 to $250.00 and gave the company an “overweight” rating in a research report on Friday, December 13th. Finally, TD Cowen upped their target price on Broadcom from $210.00 to $240.00 and gave the company a “buy” rating in a research report on Friday, December 13th. Three research analysts have rated the stock with a hold rating and twenty-five have issued a buy rating to the stock. According to MarketBeat.com, Broadcom presently has an average rating of “Moderate Buy” and a consensus price target of $231.48.

Broadcom Price Performance

The company has a current ratio of 1.17, a quick ratio of 1.07 and a debt-to-equity ratio of 0.98. The firm has a market cap of $916.55 billion, a price-to-earnings ratio of 158.81, a price-to-earnings-growth ratio of 2.29 and a beta of 1.01. The stock has a 50-day moving average of $220.42 and a two-hundred day moving average of $193.44.

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

Broadcom Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, March 31st. Investors of record on Thursday, March 20th will be paid a $0.59 dividend. This represents a $2.36 annualized dividend and a yield of 1.21%. The ex-dividend date is Thursday, March 20th. Broadcom’s dividend payout ratio is currently 113.46%.

Insider Buying and Selling

In related news, Director Eddy W. Hartenstein sold 4,000 shares of the stock in a transaction dated Wednesday, January 8th. The stock was sold at an average price of $229.64, for a total value of $918,560.00. Following the completion of the sale, the director now directly owns 46,400 shares of the company’s stock, valued at approximately $10,655,296. This represents a 7.94 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Harry L. You sold 6,540 shares of the stock in a transaction dated Tuesday, December 17th. The stock was sold at an average price of $240.00, for a total value of $1,569,600.00. Following the completion of the sale, the director now directly owns 30,450 shares of the company’s stock, valued at approximately $7,308,000. This represents a 17.68 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 191,278 shares of company stock valued at $44,964,800. Corporate insiders own 2.00% of the company’s stock.

Institutional Investors Weigh In On Broadcom

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Centaurus Financial Inc. raised its stake in shares of Broadcom by 10.1% during the 4th quarter. Centaurus Financial Inc. now owns 91,545 shares of the semiconductor manufacturer’s stock worth $21,224,000 after purchasing an additional 8,367 shares in the last quarter. Wealthedge Investment Advisors LLC purchased a new stake in shares of Broadcom during the 4th quarter worth about $3,595,000. Anchor Pointe Wealth Management LLC purchased a new stake in shares of Broadcom during the 4th quarter worth about $494,000. Capstone Triton Financial Group LLC raised its stake in shares of Broadcom by 1.5% during the 4th quarter. Capstone Triton Financial Group LLC now owns 5,873 shares of the semiconductor manufacturer’s stock worth $1,362,000 after purchasing an additional 87 shares in the last quarter. Finally, Mattson Financial Services LLC raised its stake in shares of Broadcom by 1,110.8% during the 4th quarter. Mattson Financial Services LLC now owns 17,460 shares of the semiconductor manufacturer’s stock worth $4,048,000 after purchasing an additional 16,018 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.