Broadcom (NASDAQ:AVGO) Trading 1.9% Higher – Should You Buy?

Broadcom Inc. (NASDAQ:AVGO)’s share price rose 1.9% during mid-day trading on Tuesday . The company traded as high as $435.31 and last traded at $422.01. Approximately 21,842,941 shares changed hands during mid-day trading, a decline of 10% from the average daily volume of 24,313,111 shares. The stock had previously closed at $414.14.

Analyst Ratings Changes

Several analysts recently weighed in on AVGO shares. Weiss Ratings lowered Broadcom from a “buy (b-)” rating to a “hold (c+)” rating in a report on Friday, April 24th. JPMorgan Chase & Co. lifted their target price on Broadcom from $475.00 to $500.00 and gave the stock an “overweight” rating in a research report on Thursday, March 5th. Benchmark reiterated a “buy” rating and issued a $485.00 price target on shares of Broadcom in a report on Thursday, March 5th. Mizuho reissued an “outperform” rating and set a $480.00 price target on shares of Broadcom in a research report on Thursday, April 16th. Finally, Truist Financial raised their price objective on Broadcom from $510.00 to $545.00 and gave the stock a “buy” rating in a research note on Thursday, March 5th. One research analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $448.10.

Broadcom Stock Performance

The company has a market capitalization of $2.00 trillion, a price-to-earnings ratio of 82.42, a P/E/G ratio of 0.86 and a beta of 1.43. The stock has a 50 day simple moving average of $374.86 and a 200 day simple moving average of $356.49. The company has a quick ratio of 1.73, a current ratio of 1.90 and a debt-to-equity ratio of 0.80.

Broadcom (NASDAQ:AVGO) last announced its quarterly earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.03 by $0.02. Broadcom had a return on equity of 38.61% and a net margin of 36.57%.The business had revenue of $19.31 billion for the quarter, compared to the consensus estimate of $19.10 billion. During the same quarter last year, the business posted $1.60 EPS. The business’s revenue was up 29.5% on a year-over-year basis. As a group, analysts anticipate that Broadcom Inc. will post 9.91 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Monday, March 23rd were paid a $0.65 dividend. This represents a $2.60 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date was Monday, March 23rd. Broadcom’s dividend payout ratio (DPR) is presently 50.78%.

Insider Activity

In related news, CFO Kirsten M. Spears sold 36,292 shares of the stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $321.60, for a total value of $11,671,507.20. Following the sale, the chief financial officer owned 327,760 shares of the company’s stock, valued at $105,407,616. This trade represents a 9.97% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Mark David Brazeal sold 50,488 shares of Broadcom stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $321.60, for a total transaction of $16,236,940.80. Following the completion of the sale, the insider owned 278,141 shares in the company, valued at approximately $89,450,145.60. This represents a 15.36% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 324,282 shares of company stock worth $106,425,249. 1.90% of the stock is owned by insiders.

Hedge Funds Weigh In On Broadcom

Several hedge funds and other institutional investors have recently made changes to their positions in AVGO. Vanguard Group Inc. boosted its position in Broadcom by 0.8% during the 4th quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer’s stock worth $167,064,997,000 after acquiring an additional 3,919,715 shares during the period. State Street Corp grew its stake in shares of Broadcom by 2.7% in the fourth quarter. State Street Corp now owns 190,084,351 shares of the semiconductor manufacturer’s stock worth $65,788,194,000 after purchasing an additional 5,040,801 shares in the last quarter. Geode Capital Management LLC increased its holdings in shares of Broadcom by 1.4% during the fourth quarter. Geode Capital Management LLC now owns 111,277,280 shares of the semiconductor manufacturer’s stock valued at $38,396,634,000 after purchasing an additional 1,548,699 shares during the period. Price T Rowe Associates Inc. MD raised its stake in shares of Broadcom by 3.0% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 85,546,083 shares of the semiconductor manufacturer’s stock valued at $29,607,500,000 after purchasing an additional 2,491,644 shares in the last quarter. Finally, Norges Bank bought a new stake in shares of Broadcom during the fourth quarter valued at about $24,252,196,000. 76.43% of the stock is currently owned by institutional investors and hedge funds.

Broadcom Company Profile

Broadcom Inc (NASDAQ: AVGO) is a global technology company that designs, develops and supplies semiconductor and infrastructure software solutions for a broad range of markets. The company’s semiconductor business provides components and systems for wired and wireless communications, enterprise and cloud storage, networking and broadband access, serving original equipment manufacturers, cloud service providers, telecommunications carriers and industrial customers worldwide. Broadcom is headquartered in Irvine, California, and operates globally with research, development and sales organizations across North America, Europe and Asia.

On the semiconductor side, Broadcom’s portfolio includes system-on-chip (SoC) and application-specific integrated circuit (ASIC) solutions, radio-frequency and connectivity components, Ethernet switching and PHY devices, storage adapters and controllers, optical transceivers and other networking silicon.