Broadcom (NASDAQ:AVGO) Reaches New 52-Week High - Here's Why

Shares of Broadcom Inc. (NASDAQ:AVGO - Get Free Report) hit a new 52-week high during mid-day trading on Monday . The stock traded as high as $288.82 and last traded at $289.65, with a volume of 4249510 shares traded. The stock had previously closed at $283.34.

Wall Street Analyst Weigh In

Several research analysts recently commented on AVGO shares. UBS Group increased their target price on shares of Broadcom from $270.00 to $290.00 and gave the stock a "buy" rating in a report on Friday, June 6th. HSBC upgraded shares of Broadcom from a "hold" rating to a "buy" rating and set a $400.00 target price for the company in a report on Tuesday, June 24th. Rosenblatt Securities increased their price target on shares of Broadcom from $223.00 to $340.00 and gave the company a "buy" rating in a research note on Friday, June 6th. Bank of America increased their price target on shares of Broadcom from $240.00 to $300.00 and gave the company a "buy" rating in a research note on Friday, June 6th. Finally, Truist Financial set a $295.00 price target on shares of Broadcom and gave the company a "buy" rating in a research note on Friday, June 6th. One analyst has rated the stock with a hold rating, twenty-seven have issued a buy rating and two have assigned a strong buy rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Buy" and a consensus target price of $292.08.

Broadcom Trading Up 1.7%

The business's 50 day moving average price is $254.41 and its two-hundred day moving average price is $220.17. The company has a current ratio of 1.08, a quick ratio of 0.98 and a debt-to-equity ratio of 0.89. The company has a market capitalization of $1.36 trillion, a price-to-earnings ratio of 107.94, a P/E/G ratio of 2.02 and a beta of 1.12.

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

Broadcom Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Monday, June 30th. Stockholders of record on Friday, June 20th were given a $0.59 dividend. The ex-dividend date was Friday, June 20th. This represents a $2.36 dividend on an annualized basis and a dividend yield of 0.82%. Broadcom's dividend payout ratio (DPR) is currently 88.39%.

Broadcom declared that its Board of Directors has initiated a share buyback program on Monday, April 7th that permits the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization permits the semiconductor manufacturer to reacquire up to 1.4% of its stock through open market purchases. Stock repurchase programs are often a sign that the company's board believes its shares are undervalued.

Insider Transactions at Broadcom

In other news, insider Mark David Brazeal sold 50,000 shares of the business's stock in a transaction that occurred on Monday, June 23rd. The shares were sold at an average price of $253.28, for a total value of $12,664,000.00. Following the transaction, the insider owned 415,956 shares in the company, valued at approximately $105,353,335.68. The trade was a 10.73% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Henry Samueli sold 473,898 shares of Broadcom stock in a transaction on Wednesday, June 25th. The shares were sold at an average price of $265.33, for a total transaction of $125,739,356.34. Following the completion of the sale, the director owned 38,188,575 shares of the company's stock, valued at $10,132,574,604.75. This represents a 1.23% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 830,516 shares of company stock worth $217,224,641. Company insiders own 2.00% of the company's stock.

Hedge Funds Weigh In On Broadcom

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Abundance Wealth Counselors lifted its holdings in Broadcom by 15.4% during the second quarter. Abundance Wealth Counselors now owns 13,184 shares of the semiconductor manufacturer's stock valued at $3,819,000 after purchasing an additional 1,758 shares during the last quarter. 1900 Wealth Management LLC lifted its holdings in Broadcom by 8.9% during the second quarter. 1900 Wealth Management LLC now owns 3,503 shares of the semiconductor manufacturer's stock valued at $965,000 after purchasing an additional 285 shares during the last quarter. Synergy Asset Management LLC lifted its holdings in Broadcom by 31.8% during the second quarter. Synergy Asset Management LLC now owns 89,206 shares of the semiconductor manufacturer's stock valued at $24,590,000 after purchasing an additional 21,502 shares during the last quarter. Verus Financial Partners Inc. purchased a new stake in Broadcom during the second quarter valued at about $316,000. Finally, Mattern Capital Management LLC increased its position in shares of Broadcom by 4.4% during the second quarter. Mattern Capital Management LLC now owns 44,109 shares of the semiconductor manufacturer's stock valued at $12,159,000 after buying an additional 1,867 shares during the period. 76.43% of the stock is owned by hedge funds and other institutional investors.

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.

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