Broadcom (NASDAQ:AVGO) Sets New 1-Year High - Here's Why

Key Points

• Broadcom Inc. shares reached a new 52-week high of $313.44 during mid-day trading, marking a significant rise from a previous close of $303.90.
• Analysts have revised price targets for Broadcom, with Rosenblatt Securities setting a high target of $340.00, reflecting strong buyer sentiment with a consensus rating of "Buy".
• Broadcom's latest quarterly earnings report showed a revenue increase of 20.2% year-over-year, exceeding analysts' estimates with earnings per share of $1.58.

Broadcom Inc. (NASDAQ:AVGO - Get Free Report)'s share price hit a new 52-week high during mid-day trading on Wednesday . The company traded as high as $313.44 and last traded at $312.83, with a volume of 17604553 shares traded. The stock had previously closed at $303.90.

Analysts Set New Price Targets

Several research analysts recently weighed in on the stock. Rosenblatt Securities upped their price objective on shares of Broadcom from $223.00 to $340.00 and gave the stock a "buy" rating in a research report on Friday, June 6th. Mizuho upped their price objective on shares of Broadcom from $315.00 to $320.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 16th. Oppenheimer upped their price objective on shares of Broadcom from $265.00 to $305.00 and gave the stock an "outperform" rating in a research report on Tuesday, July 15th. The Goldman Sachs Group restated a "buy" rating and issued a $340.00 price objective on shares of Broadcom in a research report on Wednesday. Finally, Susquehanna upped their price objective on shares of Broadcom from $280.00 to $300.00 and gave the stock a "positive" rating in a research report on Friday, June 6th. Two analysts have rated the stock with a hold rating, twenty-six have given a buy rating and three have given a strong buy rating to the stock. Based on data from MarketBeat, Broadcom has an average rating of "Buy" and a consensus price target of $295.96.

Broadcom Price Performance

The company has a debt-to-equity ratio of 0.89, a current ratio of 1.08 and a quick ratio of 0.98. The firm has a market cap of $1.46 trillion, a PE ratio of 116.57, a price-to-earnings-growth ratio of 2.22 and a beta of 1.15. The firm has a 50-day simple moving average of $276.06 and a 200 day simple moving average of $228.20.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its quarterly earnings data on Thursday, June 5th. The semiconductor manufacturer reported $1.58 EPS for the quarter, beating the consensus estimate of $1.57 by $0.01. The business 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 company's revenue for the quarter was up 20.2% on a year-over-year basis. During the same quarter last year, the firm posted $10.96 earnings per share. As a group, equities analysts expect that Broadcom Inc. will post 5.38 EPS for the current year.

Broadcom Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Monday, June 30th. Shareholders of record on Friday, June 20th were given a dividend of $0.59 per share. The ex-dividend date of this dividend was Friday, June 20th. This represents a $2.36 annualized dividend and a yield of 0.8%. Broadcom's dividend payout ratio (DPR) is currently 88.39%.

Insider Buying and Selling at Broadcom

In other Broadcom news, insider Charlie B. Kawwas sold 10,000 shares of the firm's stock in a transaction on Wednesday, June 11th. The stock was sold at an average price of $252.88, for a total transaction of $2,528,800.00. Following the completion of the transaction, the insider owned 789,784 shares of the company's stock, valued at approximately $199,720,577.92. This trade represents a 1.25% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO Hock E. Tan sold 117,758 shares of the firm's stock in a transaction on Thursday, June 12th. The shares were sold at an average price of $252.91, for a total value of $29,782,175.78. Following the transaction, the chief executive officer owned 1,014,152 shares of the company's stock, valued at $256,489,182.32. The trade was a 10.40% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 829,716 shares of company stock valued at $217,040,489. Company insiders own 2.00% of the company's stock.

Hedge Funds Weigh In On Broadcom

Several institutional investors and hedge funds have recently modified their holdings of the stock. Florida Financial Advisors LLC increased its holdings in shares of Broadcom by 57.0% during the second quarter. Florida Financial Advisors LLC now owns 19,029 shares of the semiconductor manufacturer's stock valued at $5,291,000 after acquiring an additional 6,907 shares in the last quarter. Clough Capital Partners L P increased its holdings in Broadcom by 82.9% in the 2nd quarter. Clough Capital Partners L P now owns 95,665 shares of the semiconductor manufacturer's stock worth $26,370,000 after buying an additional 43,370 shares in the last quarter. Camarda Financial Advisors LLC increased its holdings in Broadcom by 33.3% in the 2nd quarter. Camarda Financial Advisors LLC now owns 21,969 shares of the semiconductor manufacturer's stock worth $6,056,000 after buying an additional 5,488 shares in the last quarter. BW Gestao de Investimentos Ltda. increased its holdings in Broadcom by 133.3% in the 2nd quarter. BW Gestao de Investimentos Ltda. now owns 53,200 shares of the semiconductor manufacturer's stock worth $14,665,000 after buying an additional 30,400 shares in the last quarter. Finally, Scge Management L.P. increased its holdings in Broadcom by 5.7% in the 2nd quarter. Scge Management L.P. now owns 1,275,500 shares of the semiconductor manufacturer's stock worth $351,592,000 after buying an additional 68,500 shares in the last quarter. 76.43% of the stock is currently 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.