Broadcom (NASDAQ:AVGO) Stock Price Down 4% on Insider Selling

Broadcom Inc. (NASDAQ:AVGO - Get Free Report) traded down 4% on Tuesday after an insider sold shares in the company. The stock traded as low as $265.43 and last traded at $264.61. 7,091,435 shares were traded during mid-day trading, a decline of 75% from the average session volume of 28,812,323 shares. The stock had previously closed at $275.65.

Specifically, 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 completion of the sale, the director owned 33,352 shares of the company's stock, valued at $8,842,615.76. This trade represents a 8.25% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Hock E. Tan sold 40,000 shares of the company's stock in a transaction dated Thursday, June 26th. The shares were sold at an average price of $268.29, for a total value 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 represents a 7.65% decrease in their ownership of the stock. The disclosure for this sale can be found here. In other Broadcom news, Director Henry Samueli sold 473,898 shares of the firm's stock in a transaction dated Wednesday, June 25th. The stock was sold at an average price of $265.33, for a total value 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 approximately $10,132,574,604.75. This trade represents a 1.23% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on AVGO shares. Citigroup increased their price objective on shares of Broadcom from $276.00 to $285.00 and gave the company a "buy" rating in a research report on Monday, June 9th. Evercore ISI reiterated an "outperform" rating and set a $304.00 price objective (up from $267.00) on shares of Broadcom in a research note on Friday, June 6th. Oppenheimer raised their target price on Broadcom from $225.00 to $265.00 and gave the stock an "outperform" rating in a research note on Friday, May 30th. Morgan Stanley increased their price objective on Broadcom from $260.00 to $270.00 and gave the company an "overweight" rating in a report on Friday, June 6th. Finally, HSBC raised 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. Two equities research analysts have rated the stock with a hold rating, twenty-six have assigned a buy rating and two have assigned a strong buy rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Buy" and an average price target of $281.25.

Broadcom Stock Down 3.8%

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's 50 day moving average price is $231.62 and its 200 day moving average price is $216.10. The firm has a market cap of $1.25 trillion, a PE ratio of 99.15, a PEG ratio of 1.92 and a beta of 1.11.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its earnings results on Thursday, June 5th. The semiconductor manufacturer reported $1.58 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 net margin of 22.64% and a return on equity of 35.49%. The company's revenue for the quarter was up 20.2% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $10.96 earnings per share. On average, equities research analysts expect that Broadcom Inc. will post 5.38 earnings per share for the current year.

Broadcom Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, June 30th. Stockholders of record on Friday, June 20th were issued a dividend of $0.59 per share. The ex-dividend date was Friday, June 20th. This represents a $2.36 annualized dividend and a dividend yield of 0.89%. Broadcom's dividend payout ratio is presently 88.39%.

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

Institutional Trading of Broadcom

Several institutional investors have recently made changes to their positions in AVGO. Pensionfund Sabic lifted its stake in shares of Broadcom by 46.1% in the 1st quarter. Pensionfund Sabic now owns 24,100 shares of the semiconductor manufacturer's stock valued at $4,035,000 after purchasing an additional 7,600 shares during the last quarter. AG2R LA Mondiale Gestion D Actifs acquired a new position in Broadcom in the first quarter valued at about $27,451,000. Peterson Wealth Management boosted its stake in Broadcom by 2.2% during the first quarter. Peterson Wealth Management now owns 8,425 shares of the semiconductor manufacturer's stock worth $1,411,000 after buying an additional 179 shares during the period. Kondo Wealth Advisors Inc. increased its position in shares of Broadcom by 6.5% during the first quarter. Kondo Wealth Advisors Inc. now owns 1,282 shares of the semiconductor manufacturer's stock valued at $215,000 after acquiring an additional 78 shares during the last quarter. Finally, 1248 Management LLC raised its stake in shares of Broadcom by 312.4% in the 1st quarter. 1248 Management LLC now owns 6,239 shares of the semiconductor manufacturer's stock valued at $1,045,000 after acquiring an additional 4,726 shares during the period. Hedge funds and other institutional investors own 76.43% of the company's stock.

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.

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