Broadcom (NASDAQ:AVGO) Trading Down 1.6% - What's Next?

Key Points

• Broadcom's stock price dropped 1.6%, closing at $307.70 with trading volume significantly below average at 4.96 million shares.
• Analysts have a consensus rating of Buy for Broadcom, with target prices ranging from $265 to $340, indicating strong growth expectations.
• Broadcom declared a quarterly dividend of $0.59 per share, representing an annual yield of 0.8% with a payout ratio of 88.39%.

Broadcom Inc. (NASDAQ:AVGO - Get Free Report) was down 1.6% on Wednesday . The stock traded as low as $309.73 and last traded at $307.70. Approximately 4,964,097 shares traded hands during trading, a decline of 81% from the average daily volume of 26,239,939 shares. The stock had previously closed at $312.83.

Analyst Ratings Changes

A number of research analysts have issued reports on AVGO shares. Seaport Res Ptn upgraded Broadcom to a "strong-buy" rating in a research note on Wednesday, April 30th. Evercore ISI reaffirmed an "outperform" rating and issued a $304.00 price objective (up previously from $267.00) on shares of Broadcom in a report on Friday, June 6th. Susquehanna boosted their price target on Broadcom from $280.00 to $300.00 and gave the company a "positive" rating in a report on Friday, June 6th. Rosenblatt Securities boosted their price target on Broadcom from $223.00 to $340.00 and gave the company a "buy" rating in a report on Friday, June 6th. Finally, Redburn Atlantic began coverage on Broadcom in a report on Wednesday, May 28th. They set a "buy" rating and a $301.00 price target for the company. Two research analysts have rated the stock with a hold rating, twenty-six have issued a buy rating and three have issued a strong buy rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Buy" and a consensus target price of $295.96.

Broadcom Stock 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 business has a 50-day simple moving average of $276.06 and a 200-day simple moving average of $228.20. The firm has a market capitalization of $1.46 trillion, a PE ratio of 116.44, a P/E/G ratio of 2.22 and a beta of 1.15.

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

Broadcom Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, June 30th. Stockholders of record on Friday, June 20th were issued a $0.59 dividend. This represents a $2.36 annualized dividend and a dividend yield of 0.8%. The ex-dividend date was Friday, June 20th. Broadcom's dividend payout ratio is presently 88.39%.

Insider Transactions at Broadcom

In other Broadcom news, CEO Hock E. Tan sold 40,000 shares of the firm's stock in a transaction on Thursday, June 26th. The stock was sold at an average price of $268.29, for a total transaction of $10,731,600.00. Following the transaction, the chief executive officer directly owned 482,836 shares in the company, valued at $129,540,070.44. This trade represents a 7.65% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Gayla J. Delly sold 3,000 shares of the firm's stock in a transaction on Thursday, June 26th. The stock was sold at an average price of $265.13, for a total value of $795,390.00. Following the transaction, the director owned 33,352 shares in the company, valued at $8,842,615.76. The trade was a 8.25% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 829,716 shares of company stock valued at $217,040,489. Company insiders own 2.00% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. Sawyer & Company Inc boosted its stake in shares of Broadcom by 62.1% during the second quarter. Sawyer & Company Inc now owns 94 shares of the semiconductor manufacturer's stock worth $26,000 after buying an additional 36 shares during the period. PFS Partners LLC increased its holdings in Broadcom by 38.4% in the second quarter. PFS Partners LLC now owns 137 shares of the semiconductor manufacturer's stock valued at $38,000 after buying an additional 38 shares in the last quarter. Costello Asset Management INC increased its holdings in Broadcom by 1.5% in the second quarter. Costello Asset Management INC now owns 2,528 shares of the semiconductor manufacturer's stock valued at $697,000 after buying an additional 38 shares in the last quarter. Walkner Condon Financial Advisors LLC increased its stake in shares of Broadcom by 1.0% during the 2nd quarter. Walkner Condon Financial Advisors LLC now owns 3,944 shares of the semiconductor manufacturer's stock worth $1,087,000 after purchasing an additional 38 shares in the last quarter. Finally, Carson Advisory Inc. increased its stake in shares of Broadcom by 2.0% during the 2nd quarter. Carson Advisory Inc. now owns 2,023 shares of the semiconductor manufacturer's stock worth $558,000 after purchasing an additional 39 shares in the last quarter. 76.43% of the stock is currently owned by hedge funds and other 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.