Broadcom (NASDAQ:AVGO) Stock Price Up 1.9% - Here's What Happened

Key Points

• Broadcom shares rose 1.9% on Tuesday, briefly reaching $435.31 before closing at $422.01. Trading volume was lower than average, with about 21.8 million shares changing hands.
• Analysts remain generally constructive on the stock despite some mixed rating changes. Broadcom currently carries a Moderate Buy consensus with an average price target of $448.10.
• The company has continued to show solid fundamentals, posting better-than-expected quarterly earnings and revenue growth of 29.5% year over year. Broadcom also paid a quarterly dividend of $0.65, equal to a 0.6% annualized yield.

Shares of Broadcom Inc. (NASDAQ:AVGO - Get Free Report) rose 1.9% on Tuesday . The stock traded as high as $435.31 and last traded at $422.01. 21,842,941 shares traded hands during trading, a decline of 10% from the average daily volume of 24,313,111 shares. The stock had previously closed at $414.14.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on the stock. Seaport Research Partners restated a "neutral" rating on shares of Broadcom in a report on Wednesday, April 8th. Wolfe Research upgraded shares of Broadcom from a "peer perform" rating to an "outperform" rating and set a $400.00 price target on the stock in a report on Friday, January 30th. DA Davidson raised shares of Broadcom to a "hold" rating in a research note on Friday, February 13th. Weiss Ratings lowered Broadcom from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, April 24th. Finally, Bank of America lowered their price target on Broadcom from $500.00 to $450.00 and set a "buy" rating for the company in a research report on Thursday, March 5th. One analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and five have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $448.10.

Broadcom Stock Performance

The company has a current ratio of 1.90, a quick ratio of 1.73 and a debt-to-equity ratio of 0.80. The firm has a market cap of $2.00 trillion, a PE ratio of 82.42, a P/E/G ratio of 0.86 and a beta of 1.43. The stock's 50 day moving average price is $374.86 and its 200 day moving average price is $356.49.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its quarterly earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share for the quarter, topping analysts' consensus estimates of $2.03 by $0.02. Broadcom had a net margin of 36.57% and a return on equity of 38.61%. The firm had revenue of $19.31 billion during the quarter, compared to analysts' expectations of $19.10 billion. During the same period in the prior year, the company earned $1.60 EPS. The firm's revenue was up 29.5% on a year-over-year basis. As a group, equities analysts forecast that Broadcom Inc. will post 9.91 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Monday, March 23rd were paid a $0.65 dividend. The ex-dividend date was Monday, March 23rd. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.6%. Broadcom's dividend payout ratio (DPR) is 50.78%.

Insider Buying and Selling at Broadcom

In other news, Director Justine Page sold 2,018 shares of Broadcom stock in a transaction that occurred on Wednesday, April 8th. The shares were sold at an average price of $353.00, for a total transaction of $712,354.00. Following the sale, the director owned 18,164 shares in the company, valued at $6,411,892. This trade represents a 10.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Gayla J. Delly sold 1,000 shares of the business's stock in a transaction on Thursday, April 9th. The stock was sold at an average price of $358.31, for a total transaction of $358,310.00. Following the transaction, the director directly owned 32,352 shares in the company, valued at approximately $11,592,045.12. The trade was a 3.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 324,282 shares of company stock worth $106,425,249. Insiders own 1.90% of the company's stock.

Hedge Funds Weigh In On Broadcom

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Fullerton Advisors LLC raised its position in shares of Broadcom by 1.3% in the 1st quarter. Fullerton Advisors LLC now owns 1,989 shares of the semiconductor manufacturer's stock valued at $616,000 after purchasing an additional 25 shares in the last quarter. NORTHSTAR ASSET MANAGEMENT Co grew its position in shares of Broadcom by 0.5% during the first quarter. NORTHSTAR ASSET MANAGEMENT Co now owns 5,350 shares of the semiconductor manufacturer's stock worth $1,656,000 after buying an additional 25 shares in the last quarter. RFG Holdings Inc. increased its stake in shares of Broadcom by 0.3% in the first quarter. RFG Holdings Inc. now owns 8,499 shares of the semiconductor manufacturer's stock worth $2,631,000 after buying an additional 26 shares during the last quarter. Yukon Wealth Management Inc. increased its stake in shares of Broadcom by 1.1% in the first quarter. Yukon Wealth Management Inc. now owns 2,501 shares of the semiconductor manufacturer's stock worth $774,000 after buying an additional 26 shares during the last quarter. Finally, Capital Planning LLC raised its holdings in Broadcom by 0.7% in the first quarter. Capital Planning LLC now owns 4,044 shares of the semiconductor manufacturer's stock valued at $1,252,000 after acquiring an additional 28 shares in the last quarter. 76.43% of the stock is owned by hedge funds and other institutional investors.

Broadcom Company Profile

Broadcom Inc NASDAQ: AVGO is a global technology company that designs, develops and supplies semiconductor and infrastructure software solutions for a broad range of markets. The company's semiconductor business provides components and systems for wired and wireless communications, enterprise and cloud storage, networking and broadband access, serving original equipment manufacturers, cloud service providers, telecommunications carriers and industrial customers worldwide. Broadcom is headquartered in Irvine, California, and operates globally with research, development and sales organizations across North America, Europe and Asia.

On the semiconductor side, Broadcom's portfolio includes system-on-chip (SoC) and application-specific integrated circuit (ASIC) solutions, radio-frequency and connectivity components, Ethernet switching and PHY devices, storage adapters and controllers, optical transceivers and other networking silicon.

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