Broadcom (NASDAQ:AVGO) Rating Increased to Buy at Wall Street Zen

by · The Cerbat Gem

Wall Street Zen upgraded shares of Broadcom (NASDAQ:AVGO – Free Report) from a hold rating to a buy rating in a research note released on Saturday.

Several other equities research analysts have also recently issued reports on the stock. Argus lifted their price objective on shares of Broadcom from $285.00 to $375.00 and gave the stock a “buy” rating in a research report on Monday, September 8th. Rosenblatt Securities raised their price target on Broadcom from $400.00 to $440.00 and gave the company a “buy” rating in a research note on Tuesday, December 9th. KeyCorp reaffirmed an “overweight” rating and set a $500.00 price objective (up from $460.00) on shares of Broadcom in a research report on Friday. Evercore ISI increased their price objective on Broadcom from $342.00 to $403.00 and gave the company an “outperform” rating in a report on Wednesday, October 15th. Finally, Macquarie assumed coverage on Broadcom in a research note on Monday, September 15th. They set an “outperform” rating and a $420.00 target price for the company. Three research analysts have rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Buy” and an average target price of $435.85.

Read Our Latest Report on AVGO

Broadcom Stock Performance

Shares of AVGO opened at $359.93 on Friday. Broadcom has a 1 year low of $138.10 and a 1 year high of $414.61. The stock has a market capitalization of $1.70 trillion, a PE ratio of 75.62, a PEG ratio of 1.22 and a beta of 1.19. The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.37 and a current ratio of 1.50. The stock has a 50-day simple moving average of $363.17 and a 200-day simple moving average of $317.95.

Broadcom (NASDAQ:AVGO – Get Free Report) last issued its earnings results on Thursday, December 11th. The semiconductor manufacturer reported $1.95 earnings per share for the quarter, beating the consensus estimate of $1.87 by $0.08. Broadcom had a net margin of 36.20% and a return on equity of 38.82%. The firm had revenue of $18.02 billion for the quarter, compared to analysts’ expectations of $17.46 billion. During the same quarter last year, the company earned $1.42 earnings per share. The firm’s revenue was up 28.2% compared to the same quarter last year. On average, analysts predict that Broadcom will post 5.38 earnings per share for the current fiscal year.

Broadcom Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, December 31st. Shareholders of record on Monday, December 22nd will be given a dividend of $0.65 per share. This represents a $2.60 annualized dividend and a yield of 0.7%. 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. Broadcom’s dividend payout ratio is presently 49.58%.

Insider Buying and Selling

In other news, Director Justine Page sold 800 shares of the stock in a transaction that occurred on Friday, November 14th. The stock was sold at an average price of $331.14, for a total value of $264,912.00. Following the completion of the sale, the director directly owned 21,382 shares of the company’s stock, valued at approximately $7,080,435.48. This represents a 3.61% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Charlie B. Kawwas sold 3,893 shares of the firm’s stock in a transaction that occurred on Wednesday, September 17th. The stock was sold at an average price of $347.82, for a total transaction of $1,354,063.26. Following the transaction, the insider owned 25,295 shares in the company, valued at approximately $8,798,106.90. This trade represents a 13.34% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 837,433 shares of company stock valued at $303,900,352 in the last 90 days. Company insiders own 2.00% of the company’s stock.

Institutional Investors Weigh In On Broadcom

A number of institutional investors and hedge funds have recently made changes to their positions in AVGO. Mainstay Capital Management LLC ADV acquired a new position in Broadcom in the 3rd quarter valued at about $363,000. Painted Porch Advisors LLC lifted its position in Broadcom by 28.9% during the 3rd quarter. Painted Porch Advisors LLC now owns 1,299 shares of the semiconductor manufacturer’s stock worth $429,000 after acquiring an additional 291 shares during the period. Saranac Partners Ltd purchased a new position in shares of Broadcom in the 3rd quarter valued at approximately $10,277,000. Strategic Investment Solutions Inc. IL increased its holdings in shares of Broadcom by 4,368.0% in the third quarter. Strategic Investment Solutions Inc. IL now owns 1,117 shares of the semiconductor manufacturer’s stock valued at $369,000 after purchasing an additional 1,092 shares during the period. Finally, Swiss Life Asset Management Ltd raised its stake in shares of Broadcom by 2.6% during the third quarter. Swiss Life Asset Management Ltd now owns 1,427,112 shares of the semiconductor manufacturer’s stock worth $470,819,000 after purchasing an additional 36,387 shares during the last quarter. 76.43% of the stock is owned by hedge funds and other institutional investors.

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.

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