Broadcom (NASDAQ:AVGO) Reaches New 52-Week High - Should You Buy?

Key Points

• Broadcom's shares reached a new 52-week high at $309.86, closing at $307.76 with a trading volume of over 3.2 million shares.
• Analysts have a consensus rating of "Buy" for Broadcom, with a new average price target set at $294.92, reflecting optimism about the company's performance.
• Broadcom announced a quarterly dividend of $0.59, resulting in an annualized yield of 0.8% with a payout ratio of 88.39%.

Broadcom Inc. (NASDAQ:AVGO - Get Free Report) reached a new 52-week high during mid-day trading on Thursday . The stock traded as high as $309.86 and last traded at $307.76, with a volume of 3244812 shares traded. The stock had previously closed at $301.67.

Analyst Upgrades and Downgrades

AVGO has been the subject of several recent analyst reports. UBS Group raised their price target on Broadcom from $270.00 to $290.00 and gave the company a "buy" rating in a report on Friday, June 6th. Citigroup increased their price objective on Broadcom from $285.00 to $315.00 and gave the stock a "buy" rating in a research report on Monday, July 7th. Erste Group Bank upgraded shares of Broadcom from a "hold" rating to a "buy" rating in a research report on Thursday, June 5th. HSBC upgraded shares of Broadcom from a "hold" rating to a "buy" rating and set a $400.00 price target for the company in a report on Tuesday, June 24th. Finally, Bank of America boosted their price objective on shares of Broadcom from $240.00 to $300.00 and gave the stock a "buy" rating in a report on Friday, June 6th. One analyst has rated the stock with a hold rating, twenty-seven have issued a buy rating and three have issued a strong buy rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Buy" and a consensus target price of $294.92.

Broadcom Stock Up 0.7%

The firm has a market capitalization of $1.44 trillion, a price-to-earnings ratio of 114.79, a P/E/G ratio of 2.15 and a beta of 1.15. The stock has a 50 day moving average of $271.57 and a 200 day moving average of $226.37. The company has a quick ratio of 0.98, a current ratio of 1.08 and a debt-to-equity ratio of 0.89.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its earnings results on Thursday, June 5th. The semiconductor manufacturer reported $1.58 EPS for the quarter, topping the consensus estimate of $1.57 by $0.01. The company had revenue of $15 billion during the quarter, compared to analyst estimates of $14.98 billion. Broadcom had a return on equity of 35.49% and a net margin of 22.64%. The business's revenue was up 20.2% on a year-over-year basis. During the same quarter last year, the firm earned $10.96 EPS. As a group, analysts expect that Broadcom Inc. 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 dividend of $0.59 per share. This represents a $2.36 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date of this dividend was Friday, June 20th. Broadcom's dividend payout ratio is 88.39%.

Insider Buying and Selling

In related news, CFO Kirsten M. Spears sold 56,310 shares of the business's stock in a transaction dated Wednesday, June 18th. The shares were sold at an average price of $251.75, for a total transaction of $14,176,042.50. Following the completion of the sale, the chief financial officer owned 361,937 shares of the company's stock, valued at $91,117,639.75. This represents a 13.46% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Mark David Brazeal sold 50,000 shares of the stock in a transaction dated Monday, June 23rd. The stock was sold at an average price of $253.28, for a total transaction of $12,664,000.00. Following the sale, the insider owned 415,956 shares in the company, valued at approximately $105,353,335.68. This trade represents a 10.73% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 830,516 shares of company stock worth $217,224,641. Company insiders own 2.00% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in AVGO. Sawyer & Company Inc lifted its position in Broadcom by 62.1% in 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 last quarter. Legend Financial Advisors Inc. bought a new stake in shares of Broadcom during the second quarter valued at approximately $28,000. LGT Financial Advisors LLC bought a new stake in shares of Broadcom during the second quarter valued at approximately $31,000. Sunbeam Capital Management LLC acquired a new position in shares of Broadcom during the fourth quarter worth approximately $28,000. Finally, Maseco LLP bought a new position in Broadcom in the 2nd quarter worth approximately $34,000. Institutional investors and hedge funds own 76.43% of the company's stock.

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.