Broadcom (NASDAQ:AVGO) Trading Down 2.1% – What’s Next?

Shares of Broadcom Inc. (NASDAQ:AVGO) dropped 2.1% during trading on Tuesday . The company traded as low as $408.41 and last traded at $419.30. Approximately 18,581,552 shares were traded during trading, a decline of 25% from the average daily volume of 24,924,361 shares. The stock had previously closed at $428.43.

Analyst Ratings Changes

AVGO has been the subject of a number of research reports. Zacks Research raised shares of Broadcom from a “hold” rating to a “strong-buy” rating in a report on Thursday, April 2nd. Royal Bank Of Canada reduced their target price on shares of Broadcom from $370.00 to $340.00 and set a “sector perform” rating for the company in a report on Monday, March 2nd. Erste Group Bank cut shares of Broadcom from a “buy” rating to a “hold” rating in a report on Thursday, April 2nd. Truist Financial upped their target price on shares of Broadcom from $510.00 to $545.00 and gave the company a “buy” rating in a report on Thursday, March 5th. Finally, Rosenblatt Securities reaffirmed a “buy” rating and set a $500.00 target price on shares of Broadcom in a report on Tuesday, April 7th. Two research analysts have rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and four have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, Broadcom currently has a consensus rating of “Moderate Buy” and an average price target of $436.13.

Broadcom Trading Down 2.1%

The stock’s 50 day moving average price is $356.98 and its 200-day moving average price is $352.45. The company has a quick ratio of 1.73, a current ratio of 1.90 and a debt-to-equity ratio of 0.80. The stock has a market capitalization of $1.99 trillion, a PE ratio of 81.89, a PEG ratio of 0.89 and a beta of 1.43.

Broadcom (NASDAQ:AVGO) last announced its quarterly earnings data on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.03 by $0.02. The firm had revenue of $19.31 billion during the quarter, compared to analysts’ expectations of $19.10 billion. Broadcom had a net margin of 36.57% and a return on equity of 38.61%. The company’s revenue for the quarter was up 29.5% compared to the same quarter last year. During the same period in the prior year, the company posted $1.60 earnings per share. On average, sell-side analysts expect that Broadcom Inc. will post 9.95 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. Investors of record on Monday, March 23rd were given a dividend of $0.65 per share. The ex-dividend date was Monday, March 23rd. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.6%. Broadcom’s dividend payout ratio is currently 50.78%.

Insider Activity at Broadcom

In related news, insider Charlie B. Kawwas sold 39,116 shares of the company’s stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $321.61, for a total transaction of $12,580,096.76. Following the completion of the transaction, the insider owned 74,626 shares in the company, valued at approximately $24,000,467.86. This represents a 34.39% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Kirsten M. Spears sold 36,292 shares of the company’s stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $321.60, for a total transaction of $11,671,507.20. Following the transaction, the chief financial officer owned 327,760 shares of the company’s stock, valued at approximately $105,407,616. This represents a 9.97% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 324,282 shares of company stock worth $106,425,249 in the last three months. Insiders own 1.90% of the company’s stock.

Hedge Funds Weigh In On Broadcom

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Marin Bay Wealth Advisors LLC boosted its position in shares of Broadcom by 1.6% during the first quarter. Marin Bay Wealth Advisors LLC now owns 7,948 shares of the semiconductor manufacturer’s stock worth $2,460,000 after acquiring an additional 127 shares during the last quarter. Westpac Banking Corp boosted its position in shares of Broadcom by 0.5% during the first quarter. Westpac Banking Corp now owns 120,641 shares of the semiconductor manufacturer’s stock worth $37,340,000 after acquiring an additional 617 shares during the last quarter. CacheTech Inc. boosted its position in shares of Broadcom by 20.0% during the first quarter. CacheTech Inc. now owns 2,971 shares of the semiconductor manufacturer’s stock worth $920,000 after acquiring an additional 495 shares during the last quarter. Telligent Fund LP boosted its position in shares of Broadcom by 7.7% during the first quarter. Telligent Fund LP now owns 28,000 shares of the semiconductor manufacturer’s stock worth $8,666,000 after acquiring an additional 2,000 shares during the last quarter. Finally, Temasek Holdings Private Ltd boosted its position in shares of Broadcom by 41.8% during the first quarter. Temasek Holdings Private Ltd now owns 3,540,630 shares of the semiconductor manufacturer’s stock worth $1,095,860,000 after acquiring an additional 1,044,354 shares during the last quarter. Institutional investors own 76.43% of the company’s stock.

About Broadcom

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.