Broadcom (NASDAQ:AVGO) Trading Up 4.8% – Still a Buy?

Broadcom Inc. (NASDAQ:AVGO) shares were up 4.8% during mid-day trading on Wednesday . The stock traded as high as $233.94 and last traded at $233.11. Approximately 8,554,534 shares were traded during trading, a decline of 72% from the average daily volume of 30,186,951 shares. The stock had previously closed at $222.43.

Analyst Ratings Changes

A number of brokerages have weighed in on AVGO. Mizuho lifted their price target on shares of Broadcom from $245.00 to $260.00 and gave the company an “outperform” rating in a research note on Friday, January 10th. Barclays raised their target price on Broadcom from $205.00 to $260.00 and gave the stock an “overweight” rating in a research note on Friday, January 17th. Piper Sandler raised their target price on Broadcom from $200.00 to $250.00 and gave the stock an “overweight” rating in a research report on Friday, December 13th. Cantor Fitzgerald increased their price objective on Broadcom from $200.00 to $225.00 and gave the company an “overweight” rating in a research note on Tuesday, October 8th. Finally, JPMorgan Chase & Co. lifted their target price on shares of Broadcom from $210.00 to $250.00 and gave the stock an “overweight” rating in a research report on Friday, December 13th. Three analysts have rated the stock with a hold rating and twenty-four have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $225.04.

Broadcom Stock Up 6.0 %

The company has a debt-to-equity ratio of 0.98, a quick ratio of 1.07 and a current ratio of 1.17. The business’s 50 day moving average is $215.62 and its 200-day moving average is $183.06. The stock has a market cap of $1.11 trillion, a price-to-earnings ratio of 192.66, a PEG ratio of 2.31 and a beta of 1.02.

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

Broadcom Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, December 31st. Investors of record on Monday, December 23rd were given a $0.59 dividend. The ex-dividend date of this dividend was Monday, December 23rd. This is a boost from Broadcom’s previous quarterly dividend of $0.53. This represents a $2.36 dividend on an annualized basis and a yield of 1.00%. Broadcom’s payout ratio is 192.50%.

Insider Buying and Selling

In related news, Director Eddy W. Hartenstein sold 4,000 shares of the firm’s stock in a transaction that occurred on Wednesday, January 8th. The shares were sold at an average price of $229.64, for a total value of $918,560.00. Following the transaction, the director now owns 46,400 shares in the company, valued at approximately $10,655,296. This trade represents a 7.94 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Harry L. You sold 6,540 shares of the company’s stock in a transaction that occurred on 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 transaction, the director now owns 30,450 shares of the company’s stock, valued at approximately $7,308,000. This represents a 17.68 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 191,278 shares of company stock valued at $44,964,800 over the last ninety days. Corporate insiders own 2.00% of the company’s stock.

Institutional Investors Weigh In On Broadcom

Several large investors have recently added to or reduced their stakes in AVGO. Maripau Wealth Management LLC acquired a new stake in Broadcom during the 4th quarter worth about $578,000. Bank OZK increased its stake in Broadcom by 0.7% in the 4th quarter. Bank OZK now owns 8,302 shares of the semiconductor manufacturer’s stock valued at $1,925,000 after buying an additional 59 shares during the period. Cobblestone Capital Advisors LLC NY grew its holdings in shares of Broadcom by 2.6% during the 4th quarter. Cobblestone Capital Advisors LLC NY now owns 5,362 shares of the semiconductor manufacturer’s stock valued at $1,243,000 after acquiring an additional 137 shares in the last quarter. Sage Investment Counsel LLC purchased a new position in Broadcom in the fourth quarter valued at about $230,000. Finally, SVB Wealth LLC acquired a new position in Broadcom in the fourth quarter worth approximately $100,961,000. 76.43% of the stock is owned by institutional investors and hedge funds.

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.