Zacks Investment Research Lowers Broadcom (NASDAQ:AVGO) to Hold

Broadcom (NASDAQ:AVGO) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Friday, February 16th.

According to Zacks, “Broadcom is benefiting from strong demand of its wireless solutions and expanding product portfolio, which makes it well-positioned to address the needs of rapidly growing technologies like IoT and 5G. Broadcom has recently inked financing agreements with various institutions to fund Qualcomm’s proposed takeover. If completed, then this deal will make it the third-largest chipmaker, behind Intel and Samsung. The company also has strong ties with leading OEMs across multiple target markets that will help it to gain key insights into the requirements of customers. Moreover, the upcoming launch of the next generation WiFi products is expected to be a growth driver for the segment. However, customer concentration, intensifying competition, integration risks due to frequent acquisitions and leverage balance sheet are key headwinds.”

Other research analysts have also recently issued research reports about the company. Mizuho reiterated a “buy” rating and issued a $290.00 price objective on shares of Broadcom in a research report on Monday, November 6th. Drexel Hamilton reissued a “buy” rating and issued a $302.00 target price on shares of Broadcom in a report on Monday, November 6th. Oppenheimer reissued a “buy” rating and issued a $275.00 target price on shares of Broadcom in a report on Monday, November 6th. Nomura reaffirmed a “buy” rating and set a $300.00 price objective (up previously from $273.63) on shares of Broadcom in a research note on Monday, November 6th. Finally, Jefferies Group increased their price objective on Broadcom from $70.00 to $315.00 and gave the company a “buy” rating in a research note on Monday, November 6th. Two analysts have rated the stock with a hold rating, thirty-three have issued a buy rating and one has given a strong buy rating to the stock. The stock currently has a consensus rating of “Buy” and an average price target of $306.75.

Broadcom (NASDAQ AVGO) traded down $0.63 during trading on Friday, hitting $260.59. The stock had a trading volume of 3,959,891 shares, compared to its average volume of 3,940,000. Broadcom has a twelve month low of $208.44 and a twelve month high of $285.68. The company has a debt-to-equity ratio of 0.75, a current ratio of 6.26 and a quick ratio of 5.68. The stock has a market capitalization of $107,040.00, a PE ratio of 66.31, a PEG ratio of 1.10 and a beta of 0.88.

In related news, insider Hock E. Tan sold 20,789 shares of Broadcom stock in a transaction on Monday, December 18th. The stock was sold at an average price of $259.85, for a total value of $5,402,021.65. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, SVP Charlie B. Kawwas sold 997 shares of Broadcom stock in a transaction on Friday, March 2nd. The stock was sold at an average price of $243.88, for a total value of $243,148.36. The disclosure for this sale can be found here. Insiders sold a total of 84,481 shares of company stock worth $21,805,795 in the last three months. Company insiders own 3.32% of the company’s stock.

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Chemical Bank grew its holdings in shares of Broadcom by 6.8% during the fourth quarter. Chemical Bank now owns 19,169 shares of the semiconductor manufacturer’s stock valued at $4,925,000 after buying an additional 1,213 shares in the last quarter. Xact Kapitalforvaltning AB grew its holdings in shares of Broadcom by 6.3% during the fourth quarter. Xact Kapitalforvaltning AB now owns 83,865 shares of the semiconductor manufacturer’s stock valued at $21,545,000 after buying an additional 4,943 shares in the last quarter. Envestnet Asset Management Inc. grew its holdings in shares of Broadcom by 4.3% during the fourth quarter. Envestnet Asset Management Inc. now owns 107,777 shares of the semiconductor manufacturer’s stock valued at $27,690,000 after buying an additional 4,428 shares in the last quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp grew its holdings in shares of Broadcom by 6.6% during the fourth quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp now owns 220,793 shares of the semiconductor manufacturer’s stock valued at $56,722,000 after buying an additional 13,689 shares in the last quarter. Finally, We Are One Seven LLC purchased a new position in shares of Broadcom during the fourth quarter valued at $142,000. Institutional investors and hedge funds own 89.52% of the company’s stock.

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Broadcom Company Profile

Broadcom Limited is a designer, developer and global supplier of a range of semiconductor devices with a focus on digital and mixed signal complementary metal oxide semiconductor (CMOS)-based devices and analog III-V based products. The Company operates through four segments: Wired Infrastructure, Wireless Communications, Enterprise Storage, and Industrial & Other.

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