Zacks Investment Research Lowers Broadcom (AVGO) to Hold
Zacks Investment Research downgraded shares of Broadcom (NASDAQ:AVGO) from a buy rating to a hold rating in a research report sent to investors on Wednesday morning.
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 recently raised its bid to acquire all outstanding shares of Qualcomm. This deal will make it the third-largest chipmaker, behind Intel and Samsung. Broadcom 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. Further, increasing traction of 10G technology to support broadband video delivery will boost Wired Infrastructure revenues. However, customer concentration, intensifying competition, integration risks due to frequent acquisitions and leverage balance sheet are key headwinds.”
Other analysts also recently issued research reports about the stock. Oppenheimer reissued a buy rating and set a $275.00 target price on shares of Broadcom in a research report on Monday, November 6th. Nomura reissued a buy rating and set a $300.00 target price (up previously from $273.63) on shares of Broadcom in a research report on Monday, November 6th. Jefferies Group increased their target price on shares of Broadcom from $70.00 to $315.00 and gave the stock a buy rating in a research report on Monday, November 6th. Royal Bank of Canada reissued a buy rating on shares of Broadcom in a research report on Friday, November 3rd. Finally, JPMorgan Chase & Co. reissued a buy rating and set a $315.00 target price on shares of Broadcom in a research report on Friday, November 3rd. One equities research analyst has rated the stock with a sell rating, three have given a hold rating, thirty-three have assigned a buy rating and one has issued a strong buy rating to the company’s stock. Broadcom has a consensus rating of Buy and a consensus price target of $301.33.
Broadcom (NASDAQ:AVGO) last posted its earnings results on Wednesday, December 6th. The semiconductor manufacturer reported $4.59 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $4.52 by $0.07. The firm had revenue of $4.84 billion during the quarter, compared to the consensus estimate of $4.84 billion. Broadcom had a net margin of 10.18% and a return on equity of 28.64%. The company’s revenue was up 17.1% on a year-over-year basis. During the same quarter in the prior year, the company earned $3.47 EPS. analysts expect that Broadcom will post 17.41 earnings per share for the current year.
In other news, CFO Thomas H. Krause sold 2,595 shares of the stock in a transaction that occurred on Thursday, November 16th. The stock was sold at an average price of $267.34, for a total transaction of $693,747.30. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Hock E. Tan sold 20,000 shares of the stock in a transaction that occurred on Wednesday, November 15th. The shares were sold at an average price of $260.03, for a total value of $5,200,600.00. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 86,674 shares of company stock valued at $22,659,390. Company insiders own 3.60% of the company’s stock.
Institutional investors have recently added to or reduced their stakes in the company. AllSquare Wealth Management LLC purchased a new position in shares of Broadcom during the 3rd quarter valued at approximately $113,000. SeaCrest Wealth Management LLC purchased a new position in shares of Broadcom during the 4th quarter valued at approximately $124,000. Mountain Capital Investment Advisors Inc acquired a new stake in shares of Broadcom during the 2nd quarter valued at approximately $113,000. Tower Research Capital LLC TRC raised its position in shares of Broadcom by 473.0% during the 2nd quarter. Tower Research Capital LLC TRC now owns 573 shares of the semiconductor manufacturer’s stock valued at $134,000 after acquiring an additional 473 shares in the last quarter. Finally, Carroll Financial Associates Inc. raised its position in shares of Broadcom by 59.0% during the 3rd quarter. Carroll Financial Associates Inc. now owns 593 shares of the semiconductor manufacturer’s stock valued at $144,000 after acquiring an additional 220 shares in the last quarter. Institutional investors own 88.54% of the company’s stock.
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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