Broadcom (NASDAQ:AVGO) Stock Price Expected to Rise, Oppenheimer Analyst Says

Broadcom (NASDAQ:AVGO - Free Report) had its price objective lifted by Oppenheimer from $265.00 to $305.00 in a research report sent to investors on Tuesday morning,Benzinga reports. Oppenheimer currently has an outperform rating on the semiconductor manufacturer's stock.

A number of other analysts also recently issued reports on the company. Evercore ISI reissued an "outperform" rating and set a $304.00 price objective (up from $267.00) on shares of Broadcom in a research report on Friday, June 6th. Wells Fargo & Company raised their price target on Broadcom from $230.00 to $255.00 and gave the stock an "equal weight" rating in a research note on Friday, June 6th. Cowen restated a "buy" rating on shares of Broadcom in a research report on Friday, June 6th. Truist Financial set a $295.00 price objective on Broadcom and gave the company a "buy" rating in a research note on Friday, June 6th. Finally, Hsbc Global Res raised Broadcom from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, June 24th. One equities research analyst has rated the stock with a hold rating, twenty-seven have issued a buy rating and two have given a strong buy rating to the company. Based on data from MarketBeat, Broadcom has a consensus rating of "Buy" and a consensus price target of $292.08.

Broadcom Price Performance

AVGO stock traded up $5.64 during midday trading on Tuesday, reaching $286.45. The stock had a trading volume of 17,159,902 shares, compared to its average volume of 27,964,311. Broadcom has a 52-week low of $128.50 and a 52-week high of $288.21. The company has a market cap of $1.35 trillion, a price-to-earnings ratio of 107.28, a price-to-earnings-growth ratio of 2.00 and a beta of 1.12. The company's fifty day simple moving average is $251.34 and its 200 day simple moving average is $219.63. The company has a current ratio of 1.08, a quick ratio of 0.98 and a debt-to-equity ratio of 0.89.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its earnings results on Thursday, June 5th. The semiconductor manufacturer reported $1.58 earnings per share for the quarter, topping analysts' consensus estimates of $1.57 by $0.01. The business had revenue of $15 billion for the quarter, compared to analyst estimates of $14.98 billion. Broadcom had a net margin of 22.64% and a return on equity of 35.49%. The business's revenue was up 20.2% on a year-over-year basis. During the same period last year, the company posted $10.96 EPS. As a group, sell-side analysts predict that Broadcom will post 5.38 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Monday, June 30th. Shareholders of record on Friday, June 20th were issued a $0.59 dividend. The ex-dividend date of this dividend was Friday, June 20th. This represents a $2.36 dividend on an annualized basis and a yield of 0.82%. Broadcom's dividend payout ratio is currently 88.39%.

Broadcom declared that its board has approved a stock buyback plan on Monday, April 7th that authorizes the company to buyback $10.00 billion in shares. This buyback authorization authorizes the semiconductor manufacturer to purchase up to 1.4% of its shares through open market purchases. Shares buyback plans are usually a sign that the company's management believes its shares are undervalued.

Insider Buying and Selling at Broadcom

In other Broadcom news, CEO Hock E. Tan sold 40,000 shares of the company's stock in a transaction dated Thursday, June 26th. The shares were sold at an average price of $268.29, for a total value of $10,731,600.00. Following the completion of the transaction, the chief executive officer owned 482,836 shares in the company, valued at approximately $129,540,070.44. This represents a 7.65% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Gayla J. Delly sold 3,000 shares of the firm's stock in a transaction that occurred on Thursday, June 26th. The shares were sold at an average price of $265.13, for a total transaction of $795,390.00. Following the completion of the sale, the director owned 33,352 shares in the company, valued at $8,842,615.76. The trade was a 8.25% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 830,516 shares of company stock worth $217,224,641. Corporate insiders own 2.00% of the company's stock.

Hedge Funds Weigh In On Broadcom

A number of institutional investors and hedge funds have recently added to or reduced their stakes in AVGO. Barnes Dennig Private Wealth Management LLC bought a new position in shares of Broadcom in the first quarter valued at approximately $25,000. Cheviot Value Management LLC acquired a new stake in Broadcom in the first quarter worth approximately $25,000. Inlight Wealth Management LLC bought a new position in Broadcom during the 1st quarter valued at $26,000. Sawyer & Company Inc increased its position in shares of Broadcom by 62.1% during the 2nd quarter. Sawyer & Company Inc now owns 94 shares of the semiconductor manufacturer's stock valued at $26,000 after purchasing an additional 36 shares during the period. Finally, Sunbeam Capital Management LLC bought a new stake in shares of Broadcom in the 4th quarter worth $28,000. 76.43% of the stock is owned by institutional investors.

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.