Stock Traders Buy High Volume of Call Options on Broadcom (NASDAQ:AVGO)

Broadcom Inc. (NASDAQ:AVGO) was the target of unusually large options trading on Friday. Investors purchased 87,676 call options on the stock. This is an increase of 44% compared to the typical volume of 60,732 call options.

Analyst Ratings Changes

Several equities research analysts recently commented on AVGO shares. Cantor Fitzgerald upped their target price on Broadcom from $1,300.00 to $1,600.00 and gave the company an “overweight” rating in a research report on Monday, March 4th. Melius Research started coverage on shares of Broadcom in a research note on Monday, June 3rd. They issued a “buy” rating and a $1,850.00 price objective for the company. TD Cowen increased their target price on shares of Broadcom from $1,500.00 to $1,750.00 and gave the stock a “buy” rating in a research note on Thursday, June 13th. Wells Fargo & Company raised their price target on shares of Broadcom from $1,430.00 to $1,700.00 and gave the stock an “equal weight” rating in a report on Thursday, June 13th. Finally, Mizuho upped their price objective on shares of Broadcom from $1,625.00 to $1,900.00 and gave the company a “buy” rating in a report on Thursday, June 13th. Three research analysts have rated the stock with a hold rating and twenty-six have assigned a buy rating to the stock. Based on data from MarketBeat.com, Broadcom has a consensus rating of “Moderate Buy” and a consensus target price of $1,673.04.

Insider Buying and Selling

In other Broadcom news, CEO Hock E. Tan sold 2,000 shares of the company’s stock in a transaction dated Tuesday, April 2nd. The stock was sold at an average price of $1,312.25, for a total value of $2,624,500.00. Following the sale, the chief executive officer now owns 168,096 shares in the company, valued at approximately $220,583,976. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. In related news, insider Mark David Brazeal sold 2,500 shares of Broadcom stock in a transaction on Wednesday, April 3rd. The shares were sold at an average price of $1,367.52, for a total transaction of $3,418,800.00. Following the completion of the transaction, the insider now owns 44,474 shares of the company’s stock, valued at $60,819,084.48. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, CEO Hock E. Tan sold 2,000 shares of the business’s stock in a transaction on Tuesday, April 2nd. The shares were sold at an average price of $1,312.25, for a total transaction of $2,624,500.00. Following the completion of the transaction, the chief executive officer now owns 168,096 shares in the company, valued at approximately $220,583,976. The disclosure for this sale can be found here. Insiders sold a total of 10,364 shares of company stock valued at $13,953,966 in the last three months. Insiders own 2.00% of the company’s stock.

Institutional Trading of Broadcom

Large investors have recently bought and sold shares of the company. Stuart Chaussee & Associates Inc. bought a new stake in Broadcom in the 4th quarter valued at about $25,000. Legend Financial Advisors Inc. increased its stake in shares of Broadcom by 72.7% in the first quarter. Legend Financial Advisors Inc. now owns 19 shares of the semiconductor manufacturer’s stock worth $25,000 after purchasing an additional 8 shares in the last quarter. PSI Advisors LLC raised its position in shares of Broadcom by 66.7% in the fourth quarter. PSI Advisors LLC now owns 25 shares of the semiconductor manufacturer’s stock valued at $28,000 after purchasing an additional 10 shares during the period. BKM Wealth Management LLC purchased a new stake in shares of Broadcom during the 4th quarter valued at approximately $29,000. Finally, Richardson Capital Management LLC bought a new position in Broadcom in the 1st quarter worth approximately $29,000. 76.43% of the stock is owned by hedge funds and other institutional investors.

Broadcom Stock Performance

Broadcom stock traded up $15.77 during mid-day trading on Friday, reaching $1,602.43. 2,252,095 shares of the company’s stock were exchanged, compared to its average volume of 3,147,612. The business’s fifty day simple moving average is $1,419.13 and its 200 day simple moving average is $1,296.32. The company has a quick ratio of 1.16, a current ratio of 1.25 and a debt-to-equity ratio of 1.02. Broadcom has a one year low of $795.09 and a one year high of $1,851.62. The firm has a market capitalization of $745.92 billion, a PE ratio of 70.01, a P/E/G ratio of 2.76 and a beta of 1.17.

Shares of Broadcom are scheduled to split on Monday, July 15th. The 10-1 split was announced on Wednesday, June 12th. The newly issued shares will be distributed to shareholders after the closing bell on Friday, July 12th.

Broadcom (NASDAQ:AVGO) last posted its quarterly earnings data on Wednesday, June 12th. The semiconductor manufacturer reported $10.96 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $10.78 by $0.18. The business had revenue of $12.49 billion during the quarter, compared to the consensus estimate of $12.06 billion. Broadcom had a net margin of 24.10% and a return on equity of 35.82%. The firm’s quarterly revenue was up 43.0% compared to the same quarter last year. During the same quarter last year, the company posted $9.51 earnings per share. On average, sell-side analysts expect that Broadcom will post 37.19 earnings per share for the current year.

Broadcom Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, June 28th. Investors of record on Monday, June 24th will be paid a $5.25 dividend. The ex-dividend date is Monday, June 24th. This represents a $21.00 annualized dividend and a yield of 1.31%. Broadcom’s payout ratio is 90.32%.

About Broadcom

Broadcom Inc designs, develops, and supplies various semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. The company operates in two segments, Semiconductor Solutions and Infrastructure Software.