Broadcom (NASDAQ:AVGO) Shares Up 1.6% - Should You Buy?

Broadcom Inc. (NASDAQ:AVGO - Get Free Report) shot up 1.6% during trading on Tuesday . The company traded as high as $169.33 and last traded at $168.81. 3,994,390 shares traded hands during trading, a decline of 87% from the average session volume of 31,201,469 shares. The stock had previously closed at $166.21.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on AVGO. Truist Financial lifted their price objective on Broadcom from $260.00 to $267.00 and gave the stock a "buy" rating in a report on Friday, March 7th. Barclays lowered their price target on shares of Broadcom from $260.00 to $215.00 and set an "overweight" rating on the stock in a research report on Tuesday. William Blair restated an "outperform" rating on shares of Broadcom in a research note on Friday, March 7th. Morgan Stanley lifted their price objective on shares of Broadcom from $246.00 to $260.00 and gave the company an "overweight" rating in a research note on Friday, March 7th. Finally, Benchmark restated a "buy" rating and set a $255.00 target price on shares of Broadcom in a research report on Friday, March 7th. Three investment analysts have rated the stock with a hold rating and twenty-five have issued a buy rating to the company's stock. Based on data from MarketBeat.com, Broadcom currently has a consensus rating of "Moderate Buy" and a consensus price target of $229.48.

Broadcom Stock Up 2.2 %

The company has a market cap of $904.23 billion, a PE ratio of 156.86, a PEG ratio of 2.29 and a beta of 1.05. The stock's 50 day moving average price is $184.36 and its 200-day moving average price is $196.02. The company has a debt-to-equity ratio of 0.98, a quick ratio of 1.07 and a current ratio of 1.17.

Broadcom Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, March 31st. Stockholders of record on Thursday, March 20th were paid a dividend of $0.59 per share. The ex-dividend date of this dividend was Thursday, March 20th. This represents a $2.36 dividend on an annualized basis and a dividend yield of 1.23%. Broadcom's dividend payout ratio (DPR) is currently 113.46%.

Broadcom announced that its board has authorized a share repurchase plan on Monday, April 7th that authorizes the company to repurchase $10.00 billion in shares. This repurchase authorization authorizes the semiconductor manufacturer to buy up to 1.4% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company's management believes its stock is undervalued.

Insider Activity at Broadcom

In other Broadcom news, insider Mark David Brazeal sold 30,000 shares of the business's stock in a transaction dated Monday, March 24th. The shares were sold at an average price of $194.65, for a total value of $5,839,500.00. Following the transaction, the insider now owns 490,956 shares in the company, valued at approximately $95,564,585.40. The trade was a 5.76 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Justine Page sold 800 shares of the firm's stock in a transaction dated Monday, April 14th. The stock was sold at an average price of $185.00, for a total value of $148,000.00. Following the completion of the sale, the director now directly owns 25,380 shares in the company, valued at $4,695,300. The trade was a 3.06 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 719,776 shares of company stock worth $131,065,542 in the last ninety days. 2.00% of the stock is owned by company insiders.

Institutional Trading of Broadcom

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Canton Hathaway LLC bought a new position in Broadcom in the fourth quarter worth about $26,000. Rialto Wealth Management LLC purchased a new position in shares of Broadcom during the 4th quarter worth approximately $26,000. Sunbeam Capital Management LLC bought a new position in shares of Broadcom in the 4th quarter worth approximately $28,000. Vermillion Wealth Management Inc. purchased a new position in shares of Broadcom in the 4th quarter valued at approximately $30,000. Finally, Sellwood Investment Partners LLC bought a new stake in shares of Broadcom during the fourth quarter valued at approximately $32,000. 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.