Broadcom (NASDAQ:AVGO) Shares Up 1.9% – Still a Buy?

Broadcom Inc. (NASDAQ:AVGO) rose 1.9% during mid-day trading on Thursday . The stock traded as high as $238.60 and last traded at $232.35. Approximately 8,868,240 shares were traded during mid-day trading, a decline of 62% from the average daily volume of 23,090,807 shares. The stock had previously closed at $228.00.

Analysts Set New Price Targets

A number of equities analysts have recently commented on the company. Evercore ISI boosted their price objective on Broadcom from $201.00 to $250.00 and gave the stock an “outperform” rating in a research report on Friday, December 13th. Citigroup increased their price objective on shares of Broadcom from $175.00 to $205.00 and gave the company a “buy” rating in a research report on Tuesday, December 10th. JPMorgan Chase & Co. raised their price objective on shares of Broadcom from $210.00 to $250.00 and gave the company an “overweight” rating in a report on Friday, December 13th. Truist Financial boosted their target price on shares of Broadcom from $205.00 to $245.00 and gave the stock a “buy” rating in a research note on Friday, December 13th. Finally, Benchmark restated a “buy” rating and issued a $255.00 price target (up from $210.00) on shares of Broadcom in a research note on Friday, December 13th. Three analysts have rated the stock with a hold rating and twenty-four have issued a buy rating to the company’s stock. According to data from MarketBeat.com, Broadcom presently has a consensus rating of “Moderate Buy” and an average price target of $225.83.

Broadcom Stock Up 3.5 %

The company has a market capitalization of $1.11 trillion, a price-to-earnings ratio of 193.67, a PEG ratio of 2.35 and a beta of 1.03. The company has a current ratio of 1.17, a quick ratio of 1.07 and a debt-to-equity ratio of 0.98. The firm’s 50 day simple moving average is $200.93 and its 200-day simple moving average is $177.60.

Broadcom (NASDAQ:AVGO) last posted its quarterly earnings results on Thursday, December 12th. The semiconductor manufacturer reported $1.42 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.39 by $0.03. The firm had revenue of $14.05 billion during the quarter, compared to analysts’ expectations of $14.07 billion. Broadcom had a net margin of 11.43% and a return on equity of 28.00%. The firm’s revenue for the quarter was up 51.2% on a year-over-year basis. During the same period in the prior year, the company posted $0.98 earnings per share. On average, sell-side analysts anticipate that Broadcom Inc. will post 5.38 EPS for the current fiscal year.

Broadcom Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, December 31st. Stockholders of record on Monday, December 23rd were issued a $0.59 dividend. This is a boost from Broadcom’s previous quarterly dividend of $0.53. This represents a $2.36 annualized dividend and a dividend yield of 0.99%. The ex-dividend date was Monday, December 23rd. Broadcom’s dividend payout ratio (DPR) is currently 192.50%.

Insider Buying and Selling

In related news, CEO Hock E. Tan sold 45,000 shares of the firm’s stock in a transaction that occurred on Tuesday, December 24th. The stock was sold at an average price of $239.96, for a total value of $10,798,200.00. Following the completion of the transaction, the chief executive officer now directly owns 842,836 shares of the company’s stock, valued at $202,246,926.56. This trade represents a 5.07 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Mark David Brazeal sold 20,168 shares of the business’s stock in a transaction on Tuesday, December 24th. The stock was sold at an average price of $238.79, for a total value of $4,815,916.72. Following the sale, the insider now owns 321,660 shares in the company, valued at approximately $76,809,191.40. The trade was a 5.90 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 191,278 shares of company stock valued at $44,964,800 over the last quarter. Company insiders own 2.00% of the company’s stock.

Hedge Funds Weigh In On Broadcom

A number of institutional investors have recently made changes to their positions in the stock. Cerro Pacific Wealth Advisors LLC lifted its holdings in Broadcom by 949.1% in the 4th quarter. Cerro Pacific Wealth Advisors LLC now owns 18,537 shares of the semiconductor manufacturer’s stock valued at $4,298,000 after purchasing an additional 16,770 shares in the last quarter. FCG Investment Co lifted its stake in shares of Broadcom by 4.8% during the fourth quarter. FCG Investment Co now owns 23,994 shares of the semiconductor manufacturer’s stock valued at $5,563,000 after buying an additional 1,092 shares during the period. Apeiron RIA LLC boosted its position in Broadcom by 30.8% during the fourth quarter. Apeiron RIA LLC now owns 7,753 shares of the semiconductor manufacturer’s stock worth $1,798,000 after acquiring an additional 1,826 shares during the last quarter. Veracity Capital LLC grew its stake in Broadcom by 7.8% in the 4th quarter. Veracity Capital LLC now owns 10,440 shares of the semiconductor manufacturer’s stock worth $2,420,000 after acquiring an additional 754 shares during the period. Finally, Secure Asset Management LLC raised its holdings in Broadcom by 16.2% in the 4th quarter. Secure Asset Management LLC now owns 5,571 shares of the semiconductor manufacturer’s stock valued at $1,292,000 after acquiring an additional 778 shares during the last quarter. 76.43% of the stock is owned by institutional investors and hedge funds.

Broadcom Company Profile

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.