Broadcom (NASDAQ:AVGO) Stock Price Up 1.1% - Should You Buy?

Key Points

• Broadcom's stock increased by 1.1% to $307.10, despite a trading volume drop of 90% compared to its average daily volume.
• Recent analyst reports resulted in price target adjustments, with Morgan Stanley setting a target of $338 and HSBC upgrading to a "buy" rating with a $400 target.
• Broadcom declared a quarterly dividend of $0.59, representing an annualized yield of 0.8%, with a payout ratio of 88.39%.

Shares of Broadcom Inc. (NASDAQ:AVGO - Get Free Report) rose 1.1% during trading on Tuesday . The company traded as high as $308.44 and last traded at $307.10. Approximately 2,671,591 shares changed hands during mid-day trading, a decline of 90% from the average daily volume of 26,285,396 shares. The stock had previously closed at $303.90.

Analyst Upgrades and Downgrades

AVGO has been the subject of several recent research reports. Morgan Stanley set a $338.00 price objective on Broadcom and gave the company an "overweight" rating in a research report on Wednesday, July 30th. Wall Street Zen downgraded Broadcom from a "buy" rating to a "hold" rating in a report on Saturday. JPMorgan Chase & Co. lifted their price objective on Broadcom from $250.00 to $325.00 and gave the stock an "overweight" rating in a report on Friday, June 6th. Benchmark lifted their price objective on Broadcom from $255.00 to $315.00 and gave the stock a "buy" rating in a report on Friday, June 6th. Finally, HSBC upgraded Broadcom from a "hold" rating to a "buy" rating and set a $400.00 price objective 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 given a buy rating and three have issued a strong buy rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Buy" and an average target price of $294.92.

Broadcom Stock Performance

The stock has a market capitalization of $1.47 trillion, a price-to-earnings ratio of 116.83, a price-to-earnings-growth ratio of 2.17 and a beta of 1.15. The firm has a fifty day moving average of $273.98 and a 200 day moving average of $227.04. The company has a debt-to-equity ratio of 0.89, a current ratio of 1.08 and a quick ratio of 0.98.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued 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. Broadcom had a return on equity of 35.49% and a net margin of 22.64%. The company had revenue of $15 billion for the quarter, compared to analyst estimates of $14.98 billion. During the same period last year, the company earned $10.96 earnings per share. Broadcom's quarterly revenue was up 20.2% compared to the same quarter last year. On average, sell-side analysts anticipate that Broadcom Inc. will post 5.38 earnings per share for the current fiscal year.

Broadcom Announces Dividend

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

Insider Transactions at Broadcom

In other Broadcom news, 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 directly 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Kirsten M. Spears sold 36,350 shares of the firm's stock in a transaction dated Tuesday, June 24th. The stock was sold at an average price of $261.27, for a total transaction of $9,497,164.50. Following the sale, the chief financial officer owned 325,587 shares of the company's stock, valued at approximately $85,066,115.49. The trade was a 10.04% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 830,516 shares of company stock valued at $217,224,641. Insiders own 2.00% of the company's stock.

Institutional Investors Weigh In On Broadcom

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Sawyer & Company Inc raised its position in Broadcom by 62.1% in the second quarter. Sawyer & Company Inc now owns 94 shares of the semiconductor manufacturer's stock valued at $26,000 after purchasing an additional 36 shares during the period. PFS Partners LLC raised its holdings in shares of Broadcom by 38.4% in the 2nd quarter. PFS Partners LLC now owns 137 shares of the semiconductor manufacturer's stock valued at $38,000 after buying an additional 38 shares during the period. Costello Asset Management INC raised its holdings in shares of Broadcom by 1.5% in the 2nd 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 during the period. Walkner Condon Financial Advisors LLC grew its stake in 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. grew its stake in 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 institutional investors and hedge funds.

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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