Broadcom (NASDAQ:AVGO) Stock Price Up 3.9% – Still a Buy?

Shares of Broadcom Inc. (NASDAQ:AVGOGet Free Report) shot up 3.9% on Monday . The stock traded as high as $326.48 and last traded at $322.51. 26,847,924 shares changed hands during mid-day trading, a decline of 1% from the average session volume of 27,168,385 shares. The stock had previously closed at $310.51.

Key Stories Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on the stock. KeyCorp reaffirmed an “overweight” rating and issued a $500.00 price target (up from $460.00) on shares of Broadcom in a research note on Friday, December 12th. Wells Fargo & Company raised Broadcom from an “equal weight” rating to an “overweight” rating and boosted their target price for the stock from $410.00 to $430.00 in a report on Thursday, January 15th. Deutsche Bank Aktiengesellschaft set a $430.00 price target on Broadcom and gave the company a “buy” rating in a research note on Friday, December 12th. Mizuho set a $480.00 price objective on Broadcom and gave the stock an “outperform” rating in a research note on Friday, January 9th. Finally, Barclays restated an “overweight” rating and issued a $500.00 price objective (up from $450.00) on shares of Broadcom in a report on Friday, December 12th. One research analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $435.30.

Get Our Latest Stock Analysis on Broadcom

Broadcom Stock Performance

The company’s 50-day simple moving average is $329.11 and its 200-day simple moving average is $345.61. The stock has a market cap of $1.51 trillion, a price-to-earnings ratio of 62.27, a price-to-earnings-growth ratio of 0.69 and a beta of 1.22. 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:AVGOGet Free Report) last released its quarterly earnings data on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share for the quarter, topping the consensus estimate of $2.03 by $0.02. The business had revenue of $19.31 billion during the quarter, compared to analyst estimates of $19.10 billion. Broadcom had a return on equity of 38.61% and a net margin of 36.57%.The company’s revenue was up 29.5% compared to the same quarter last year. During the same period last year, the company posted $1.60 EPS. Analysts predict that Broadcom Inc. will post 5.38 EPS for the current fiscal year.

Broadcom Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Monday, March 23rd will be issued a dividend of $0.65 per share. This represents a $2.60 annualized dividend and a yield of 0.8%. The ex-dividend date is Monday, March 23rd. Broadcom’s payout ratio is presently 50.78%.

Insider Activity at Broadcom

In other news, insider Mark David Brazeal sold 50,488 shares of the business’s stock in a transaction that occurred on 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 sale, the insider owned 278,141 shares in the company, valued at $89,450,145.60. The trade was a 15.36% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider S. Ram Velaga sold 38,841 shares of the company’s stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $321.60, for a total transaction of $12,491,265.60. Following the completion of the sale, the insider owned 96,147 shares of the company’s stock, valued at approximately $30,920,875.20. This trade represents a 28.77% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 428,970 shares of company stock valued at $142,585,321. Corporate insiders own 1.90% of the company’s stock.

Institutional Trading of Broadcom

Several large investors have recently added to or reduced their stakes in the company. ROSS JOHNSON & Associates LLC raised its holdings in shares of Broadcom by 1,320.0% during the fourth quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer’s stock worth $25,000 after acquiring an additional 66 shares in the last quarter. SWAN Capital LLC increased its position in Broadcom by 261.9% in the 4th quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer’s stock worth $26,000 after purchasing an additional 55 shares during the last quarter. Teachers Insurance & Annuity Association of America acquired a new position in Broadcom in the 2nd quarter worth about $28,000. JCIC Asset Management Inc. purchased a new stake in shares of Broadcom during the 3rd quarter worth about $31,000. Finally, Miller Global Investments LLC acquired a new stake in shares of Broadcom during the 4th quarter valued at about $31,000. 76.43% of the stock is owned by institutional investors and hedge funds.

About Broadcom

(Get Free Report)

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.

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