Broadcom (NASDAQ:AVGO) Shares Up 1.4% – Here’s Why

Broadcom Inc. (NASDAQ:AVGO) was up 1.4% during mid-day trading on Monday . The stock traded as high as $363.97 and last traded at $362.66. Approximately 25,814,603 shares were traded during trading, an increase of 2% from the average session volume of 25,298,486 shares. The stock had previously closed at $357.61.

Analysts Set New Price Targets

Several equities research analysts have weighed in on the stock. Morgan Stanley restated an “overweight” rating and issued a $505.00 target price (up from $502.00) on shares of Broadcom in a research note on Thursday, September 3rd. Weiss Ratings lowered shares of Broadcom from a “buy (b)” rating to a “buy (b-)” rating in a research report on Thursday, July 30th. Mizuho upped their target price on Broadcom from $480.00 to $530.00 and gave the stock an “outperform” rating in a research note on Thursday, June 4th. Royal Bank Of Canada began coverage on shares of Broadcom in a research report on Thursday, September 3rd. They set an “outperform” rating on the stock. Finally, Dbs Bank raised Broadcom to a “moderate buy” rating in a report on Thursday, June 18th. One investment analyst has rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $509.04.

Broadcom Stock Performance

The company has a market cap of $1.73 trillion, a price-to-earnings ratio of 46.32 and a beta of 1.44. The firm has a 50 day simple moving average of $378.91 and a 200-day simple moving average of $379.43. The company has a debt-to-equity ratio of 0.57, a current ratio of 2.50 and a quick ratio of 2.29.

Broadcom (NASDAQ:AVGO) last posted its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 EPS for the quarter, beating analysts’ consensus estimates of $3.22 by $0.10. Broadcom had a net margin of 42.94% and a return on equity of 48.33%. The company had revenue of $29.59 billion for the quarter, compared to analysts’ expectations of $29.24 billion. During the same quarter in the prior year, the company posted $1.69 earnings per share. Broadcom’s revenue for the quarter was up 85.5% compared to the same quarter last year. As a group, analysts predict that Broadcom Inc. will post 10.36 EPS for the current fiscal year.

Broadcom Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Monday, September 21st will be given a dividend of $0.65 per share. This represents a $2.60 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend is Monday, September 21st. Broadcom’s dividend payout ratio is currently 33.21%.

Insider Buying and Selling at Broadcom

In other Broadcom news, Director Gayla Delly sold 1,890 shares of the business’s stock in a transaction on Wednesday, July 8th. The shares were sold at an average price of $385.38, for a total value of $728,368.20. Following the completion of the transaction, the director owned 31,326 shares in the company, valued at $12,072,413.88. The trade was a 5.69% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, insider Mark Brazeal sold 25,000 shares of the business’s stock in a transaction on Friday, July 10th. The stock was sold at an average price of $401.33, for a total value of $10,033,250.00. Following the transaction, the insider directly owned 194,989 shares of the company’s stock, valued at $78,254,935.37. The trade was a 11.36% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 53,492 shares of company stock valued at $20,840,292 in the last 90 days. Company insiders own 1.90% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the business. Security National Bank of Sioux City Iowa IA purchased a new position in Broadcom in the second quarter valued at approximately $227,000. Wellington Altus USA Inc. increased its position in Broadcom by 18.3% in the 2nd quarter. Wellington Altus USA Inc. now owns 2,344 shares of the semiconductor manufacturer’s stock valued at $885,000 after acquiring an additional 362 shares during the period. Twin Peaks Capital Ltd acquired a new position in shares of Broadcom in the second quarter valued at approximately $7,555,000. Anchor Investment Management LLC increased its stake in Broadcom by 7.3% in the 2nd quarter. Anchor Investment Management LLC now owns 25,525 shares of the semiconductor manufacturer’s stock valued at $9,269,000 after buying an additional 1,741 shares during the period. Finally, Reynders McVeigh Capital Management LLC raised its holdings in Broadcom by 348.4% during the second quarter. Reynders McVeigh Capital Management LLC now owns 454,086 shares of the semiconductor manufacturer’s stock worth $171,531,000 after purchasing an additional 352,815 shares in the last quarter. Hedge funds and other institutional investors own 76.43% of the company’s stock.

About Broadcom

Broadcom Inc (NASDAQ:AVGO) designs, develops and supplies semiconductor and infrastructure software products for businesses, telecommunications providers and other organizations worldwide. Its semiconductor portfolio includes networking and connectivity components, custom application-specific integrated circuits, broadband and wireless communications products, storage adapters, optical components, and industrial solutions.

The company also provides enterprise infrastructure software through businesses including VMware, which offers virtualization and private- and hybrid-cloud solutions; mainframe and enterprise software; and cybersecurity products.