Broadcom (NASDAQ:AVGO) Stock Price Up 1% – Should You Buy?

Broadcom Inc. (NASDAQ:AVGO)’s stock price rose 1% during mid-day trading on Tuesday . The stock traded as high as $174.40 and last traded at $173.81. Approximately 3,288,695 shares changed hands during mid-day trading, a decline of 89% from the average daily volume of 30,128,418 shares. The stock had previously closed at $172.02.

Analyst Upgrades and Downgrades

AVGO has been the subject of several recent analyst reports. Truist Financial increased their price target on Broadcom from $204.00 to $205.00 and gave the stock a “buy” rating in a research note on Tuesday, October 8th. Mizuho upped their price objective on Broadcom from $190.00 to $220.00 and gave the company an “outperform” rating in a report on Monday, October 14th. Benchmark restated a “buy” rating and issued a $210.00 price objective on shares of Broadcom in a report on Friday, September 6th. Cantor Fitzgerald upped their price objective on Broadcom from $200.00 to $225.00 and gave the company an “overweight” rating in a report on Tuesday, October 8th. Finally, JPMorgan Chase & Co. upped their price objective on Broadcom from $200.00 to $210.00 and gave the company an “overweight” rating in a report on Friday, September 6th. Two investment analysts have rated the stock with a hold rating, twenty-four have issued a buy rating and one has assigned a strong buy rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $191.54.

Broadcom Stock Down 1.5 %

The stock has a market capitalization of $822.24 billion, a price-to-earnings ratio of 153.60, a price-to-earnings-growth ratio of 2.99 and a beta of 1.17. The company has a quick ratio of 0.94, a current ratio of 1.04 and a debt-to-equity ratio of 1.02. The firm has a 50-day moving average of $168.74 and a two-hundred day moving average of $155.58.

Broadcom (NASDAQ:AVGO) last issued its earnings results on Thursday, September 5th. The semiconductor manufacturer reported $1.24 earnings per share for the quarter, topping the consensus estimate of $1.20 by $0.04. Broadcom had a return on equity of 30.12% and a net margin of 10.88%. The company had revenue of $13.07 billion for the quarter, compared to analyst estimates of $12.98 billion. During the same period in the prior year, the firm posted $0.95 EPS. The business’s revenue was up 47.3% compared to the same quarter last year. As a group, sell-side analysts anticipate that Broadcom Inc. will post 3.78 earnings per share for the current year.

Broadcom Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, September 30th. Stockholders of record on Thursday, September 19th were issued a dividend of $0.53 per share. This is a positive change from Broadcom’s previous quarterly dividend of $0.53. The ex-dividend date of this dividend was Thursday, September 19th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 1.20%. Broadcom’s dividend payout ratio is currently 184.35%.

Insider Activity

In other news, CEO Hock E. Tan sold 50,000 shares of the stock in a transaction dated Tuesday, September 17th. The stock was sold at an average price of $163.37, for a total transaction of $8,168,500.00. Following the transaction, the chief executive officer now owns 1,331,910 shares of the company’s stock, valued at approximately $217,594,136.70. This represents a 0.00 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. In related news, insider Charlie B. Kawwas sold 15,950 shares of the stock in a transaction that occurred on Friday, October 11th. The stock was sold at an average price of $181.44, for a total transaction of $2,893,968.00. Following the completion of the sale, the insider now owns 737,330 shares in the company, valued at $133,781,155.20. This represents a 0.00 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Hock E. Tan sold 50,000 shares of the stock in a transaction that occurred on Tuesday, September 17th. The shares were sold at an average price of $163.37, for a total value of $8,168,500.00. Following the sale, the chief executive officer now owns 1,331,910 shares of the company’s stock, valued at approximately $217,594,136.70. The trade was a 0.00 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 311,080 shares of company stock valued at $53,540,590. Insiders own 2.00% of the company’s stock.

Institutional Trading of Broadcom

Hedge funds have recently added to or reduced their stakes in the business. Tempus Wealth Planning LLC bought a new stake in shares of Broadcom in the 1st quarter worth approximately $203,000. Park Edge Advisors LLC lifted its position in shares of Broadcom by 28.2% in the 1st quarter. Park Edge Advisors LLC now owns 842 shares of the semiconductor manufacturer’s stock worth $1,116,000 after acquiring an additional 185 shares during the period. American National Bank & Trust Co. VA bought a new stake in shares of Broadcom in the 1st quarter worth approximately $5,055,000. Marshall Financial Group LLC lifted its position in shares of Broadcom by 2.2% in the 1st quarter. Marshall Financial Group LLC now owns 2,695 shares of the semiconductor manufacturer’s stock worth $3,572,000 after acquiring an additional 58 shares during the period. Finally, Whelan Financial lifted its position in shares of Broadcom by 29.7% in the 1st quarter. Whelan Financial now owns 262 shares of the semiconductor manufacturer’s stock worth $347,000 after acquiring an additional 60 shares during the period. Institutional investors own 76.43% of the company’s stock.

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.