Broadcom (NASDAQ:AVGO) Stock Price Down 5.6% – Time to Sell?

Broadcom Inc. (NASDAQ:AVGO) was down 5.6% during trading on Tuesday . The company traded as low as $233.80 and last traded at $236.00. Approximately 28,476,472 shares traded hands during mid-day trading, a decline of 4% from the average daily volume of 29,770,359 shares. The stock had previously closed at $250.00.

Wall Street Analyst Weigh In

Several analysts have recently commented on the stock. Rosenblatt Securities reaffirmed a “buy” rating and set a $240.00 price target on shares of Broadcom in a research report on Wednesday, December 11th. Deutsche Bank Aktiengesellschaft increased their price objective on shares of Broadcom from $190.00 to $240.00 and gave the stock a “buy” rating in a research report on Friday, December 13th. Mizuho boosted their target price on Broadcom from $190.00 to $220.00 and gave the company an “outperform” rating in a research report on Monday, October 14th. Piper Sandler boosted their price objective on Broadcom from $200.00 to $250.00 and gave the company an “overweight” rating in a report on Friday, December 13th. Finally, The Goldman Sachs Group lifted their target price on Broadcom from $185.00 to $190.00 and gave the company a “buy” rating in a research report on Friday, September 6th. Three equities research analysts have rated the stock with a hold rating and twenty-four have given a buy rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $220.54.

Broadcom Trading Down 2.4 %

The firm has a market cap of $1.02 trillion, a price-to-earnings ratio of 189.68, a PEG ratio of 2.15 and a beta of 1.13. The business has a fifty day moving average of $178.05 and a two-hundred day moving average of $166.48. The company has a debt-to-equity ratio of 1.02, a quick ratio of 0.94 and a current ratio of 1.04.

Broadcom (NASDAQ:AVGO) last announced its earnings results on Thursday, December 12th. The semiconductor manufacturer reported $1.42 earnings per share for the quarter, beating the consensus estimate of $1.39 by $0.03. The firm had revenue of $14.05 billion during the quarter, compared to the consensus estimate of $14.07 billion. Broadcom had a net margin of 10.88% and a return on equity of 30.12%. The firm’s revenue for the quarter was up 51.2% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.98 EPS. As a group, equities analysts expect that Broadcom Inc. will post 3.79 earnings per share for the current fiscal year.

Broadcom Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, December 31st. Investors of record on Monday, December 23rd will be given a $0.59 dividend. This is a positive change from Broadcom’s previous quarterly dividend of $0.53. This represents a $2.36 annualized dividend and a dividend yield of 1.08%. The ex-dividend date of this dividend is Monday, December 23rd. Broadcom’s dividend payout ratio (DPR) is 191.87%.

Insider Transactions at Broadcom

In other Broadcom news, CEO Hock E. Tan sold 150,000 shares of the company’s stock in a transaction that occurred on Tuesday, September 24th. The stock was sold at an average price of $172.94, for a total value of $25,941,000.00. Following the completion of the transaction, the chief executive officer now owns 1,181,910 shares in the company, valued at $204,399,515.40. This represents a 11.26 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Mark David Brazeal sold 20,280 shares of the business’s stock in a transaction on Monday, October 7th. The stock was sold at an average price of $177.10, for a total transaction of $3,591,588.00. Following the transaction, the insider now directly owns 399,460 shares in the company, valued at approximately $70,744,366. The trade was a 4.83 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 235,880 shares of company stock worth $41,131,686. 2.00% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Broadcom

Several hedge funds and other institutional investors have recently modified their holdings of AVGO. Independent Solutions Wealth Management LLC boosted its holdings in shares of Broadcom by 846.9% in the 3rd quarter. Independent Solutions Wealth Management LLC now owns 49,136 shares of the semiconductor manufacturer’s stock valued at $8,476,000 after buying an additional 43,947 shares during the period. Syntax Research Inc. raised its position in shares of Broadcom by 882.8% during the 3rd quarter. Syntax Research Inc. now owns 6,899 shares of the semiconductor manufacturer’s stock worth $1,190,000 after purchasing an additional 6,197 shares during the period. SMART Wealth LLC bought a new stake in shares of Broadcom in the 3rd quarter worth approximately $662,000. Lord Abbett & CO. LLC lifted its holdings in shares of Broadcom by 762.8% in the 3rd quarter. Lord Abbett & CO. LLC now owns 2,181,786 shares of the semiconductor manufacturer’s stock worth $376,358,000 after purchasing an additional 1,928,907 shares during the last quarter. Finally, B. Riley Wealth Advisors Inc. lifted its stake in Broadcom by 624.8% in the third quarter. B. Riley Wealth Advisors Inc. now owns 138,687 shares of the semiconductor manufacturer’s stock valued at $23,889,000 after buying an additional 119,553 shares during the last quarter. Institutional investors own 76.43% of the company’s stock.

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.