Broadcom (NASDAQ:AVGO) Stock Price Down 4.5% – Time to Sell?

by · The Cerbat Gem

Shares of Broadcom Inc. (NASDAQ:AVGOGet Free Report) traded down 4.5% during mid-day trading on Wednesday . The stock traded as low as $321.42 and last traded at $326.02. 72,803,413 shares changed hands during mid-day trading, an increase of 178% from the average session volume of 26,232,902 shares. The stock had previously closed at $341.30.

Wall Street Analyst Weigh In

A number of research analysts recently commented on the company. UBS Group set a $475.00 price target on Broadcom and gave the stock a “buy” rating in a research report on Monday. Weiss Ratings reissued a “buy (b-)” rating on shares of Broadcom in a report on Monday. Citigroup restated a “buy” rating and issued a $480.00 target price (up from $415.00) on shares of Broadcom in a research report on Friday, December 12th. Mizuho upped their price target on shares of Broadcom from $435.00 to $450.00 and gave the stock an “outperform” rating in a report on Friday, December 12th. Finally, Bank of America lifted their price objective on shares of Broadcom from $460.00 to $500.00 and gave the company a “buy” rating in a research note on Friday, December 12th. Three investment analysts have rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and one has given a Hold rating to the company. According to MarketBeat, Broadcom currently has a consensus rating of “Buy” and a consensus price target of $435.96.

View Our Latest Research Report on AVGO

Broadcom Stock Down 4.5%

The firm’s fifty day moving average is $363.35 and its 200-day moving average is $319.91. The company has a market capitalization of $1.54 trillion, a P/E ratio of 68.49, a price-to-earnings-growth ratio of 1.23 and a beta of 1.19. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.58 and a current ratio of 1.71.

Broadcom (NASDAQ:AVGOGet Free Report) last issued its earnings results on Thursday, December 11th. The semiconductor manufacturer reported $1.95 earnings per share for the quarter, beating analysts’ consensus estimates of $1.87 by $0.08. The firm had revenue of $18.02 billion for the quarter, compared to analyst estimates of $17.46 billion. Broadcom had a net margin of 36.20% and a return on equity of 37.45%. The company’s quarterly revenue was up 28.2% on a year-over-year basis. During the same quarter last year, the business posted $1.42 earnings per share. As a group, equities research analysts predict that Broadcom Inc. will post 5.38 EPS for the current year.

Broadcom Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, December 31st. Investors of record on Monday, December 22nd will be issued a dividend of $0.65 per share. This is a positive change from Broadcom’s previous quarterly dividend of $0.59. The ex-dividend date of this dividend is Monday, December 22nd. This represents a $2.60 annualized dividend and a dividend yield of 0.8%. Broadcom’s dividend payout ratio (DPR) is 49.58%.

Insiders Place Their Bets

In other news, Director Justine Page sold 800 shares of the business’s stock in a transaction dated Friday, November 14th. The stock was sold at an average price of $331.14, for a total transaction of $264,912.00. Following the sale, the director directly owned 21,382 shares in the company, valued at approximately $7,080,435.48. The trade was a 3.61% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Henry Samueli sold 368,797 shares of the company’s stock in a transaction that occurred on Wednesday, September 24th. The shares were sold at an average price of $337.91, for a total value of $124,620,194.27. Following the completion of the transaction, the director directly owned 37,722,534 shares of the company’s stock, valued at $12,746,821,463.94. This represents a 0.97% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 790,713 shares of company stock valued at $287,419,394 in the last 90 days. Corporate insiders own 2.00% of the company’s stock.

Institutional Investors Weigh In On Broadcom

Hedge funds have recently added to or reduced their stakes in the business. Norges Bank bought a new stake in shares of Broadcom in the 2nd quarter valued at about $18,579,549,000. Price T Rowe Associates Inc. MD raised its position in shares of Broadcom by 37.8% during the first quarter. Price T Rowe Associates Inc. MD now owns 65,509,579 shares of the semiconductor manufacturer’s stock worth $10,968,270,000 after acquiring an additional 17,985,046 shares during the last quarter. Vanguard Group Inc. lifted its stake in shares of Broadcom by 1.3% in the second quarter. Vanguard Group Inc. now owns 483,442,939 shares of the semiconductor manufacturer’s stock worth $133,261,046,000 after acquiring an additional 6,222,802 shares during the period. Edgewood Management LLC acquired a new position in shares of Broadcom in the second quarter worth approximately $1,571,438,000. Finally, Arrowstreet Capital Limited Partnership boosted its holdings in Broadcom by 499.4% in the third quarter. Arrowstreet Capital Limited Partnership now owns 5,634,232 shares of the semiconductor manufacturer’s stock valued at $1,858,789,000 after acquiring an additional 4,694,313 shares during the last quarter. 76.43% of the stock is currently owned by institutional investors and hedge funds.

About Broadcom

(Get Free Report)

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.

Recommended Stories