Broadcom (NASDAQ:AVGO) Stock Price Down 1.6% Following Insider Selling

Key Points

• Broadcom's stock price fell by 1.6% to $301.49 following insider selling, with a significant drop in trading volume of 81% compared to the average daily volume.
• Director Justine Page sold 800 shares at about $307.46, resulting in a 3.25% decrease in her ownership of Broadcom shares.
• Analysts remain optimistic, with twenty-seven buy ratings and a consensus price target of $295.96 for the stock, following a quarterly earnings report that beat expectations.

Broadcom Inc. (NASDAQ:AVGO - Get Free Report)'s stock price was down 1.6% on Monday following insider selling activity. The stock traded as low as $299.00 and last traded at $301.49. Approximately 5,012,264 shares were traded during mid-day trading, a decline of 81% from the average daily volume of 26,091,561 shares. The stock had previously closed at $306.34.

Specifically, Director Justine Page sold 800 shares of the stock in a transaction on Thursday, August 14th. The stock was sold at an average price of $307.46, for a total value of $245,968.00. Following the completion of the sale, the director directly owned 23,782 shares in the company, valued at $7,312,013.72. This represents a 3.25% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink.

Wall Street Analyst Weigh In

Several brokerages have recently commented on AVGO. UBS Group raised their target price on Broadcom from $270.00 to $290.00 and gave the company a "buy" rating in a research note on Friday, June 6th. Morgan Stanley set a $338.00 target price on Broadcom and gave the company an "overweight" rating in a research note on Wednesday, July 30th. Truist Financial set a $295.00 target price on Broadcom and gave the company a "buy" rating in a research note on Friday, June 6th. KeyCorp raised their target price on Broadcom from $315.00 to $330.00 and gave the company an "overweight" rating in a research note on Tuesday, July 8th. Finally, Cowen restated a "buy" rating on shares of Broadcom in a research note on Friday, June 6th. One equities research analyst has rated the stock with a hold rating, twenty-seven have given a buy rating and three have given a strong buy rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Buy" and a consensus price target of $295.96.

Broadcom Stock Performance

The company's 50 day moving average price is $278.27 and its 200-day moving average price is $229.89. The company has a debt-to-equity ratio of 0.89, a quick ratio of 0.98 and a current ratio of 1.08. The company has a market cap of $1.41 trillion, a PE ratio of 112.59, a price-to-earnings-growth ratio of 2.18 and a beta of 1.15.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its quarterly earnings data 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 business had revenue of $15 billion during the quarter, compared to analyst estimates of $14.98 billion. During the same period in the previous year, the business earned $10.96 EPS. Broadcom's revenue was up 20.2% compared to the same quarter last year. Equities research analysts anticipate that Broadcom Inc. will post 5.38 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

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

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of AVGO. Redwood Financial Network Corp grew its position in shares of Broadcom by 1.7% during the 2nd quarter. Redwood Financial Network Corp now owns 1,939 shares of the semiconductor manufacturer's stock valued at $535,000 after purchasing an additional 33 shares in the last quarter. Sawyer & Company Inc grew 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 in the last quarter. PFS Partners LLC grew its position in shares of Broadcom by 38.4% during the 2nd quarter. PFS Partners LLC now owns 137 shares of the semiconductor manufacturer's stock valued at $38,000 after purchasing an additional 38 shares in the last quarter. Costello Asset Management INC grew its position in shares of Broadcom by 1.5% during the 2nd quarter. Costello Asset Management INC now owns 2,528 shares of the semiconductor manufacturer's stock valued at $697,000 after purchasing an additional 38 shares in the last quarter. Finally, Walkner Condon Financial Advisors LLC grew its position 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 valued at $1,087,000 after purchasing an additional 38 shares in the last quarter. 76.43% of the stock is currently 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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