Broadcom (NASDAQ:AVGO) Stock Price Up 1.5% - Time to Buy?

Key Points

• Broadcom's stock traded up 1.5% to $297.33, with significantly lower trading volume of 3.8 million shares compared to its average of 26.6 million shares.
• Multiple analysts have revised their price targets for Broadcom, with UBS raising it to $290, Citigroup to $315, and Evercore ISI to $304; the consensus target price is currently $294.92.
• Broadcom recently declared a quarterly dividend of $0.59 per share, translating to an annualized dividend of $2.36 and a yield of 0.8%.

Broadcom Inc. (NASDAQ:AVGO - Get Free Report)'s stock price was up 1.5% during mid-day trading on Wednesday . The company traded as high as $296.91 and last traded at $297.33. Approximately 3,849,704 shares changed hands during trading, a decline of 86% from the average daily volume of 26,603,207 shares. The stock had previously closed at $292.93.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on the company. Truist Financial set a $295.00 price objective on Broadcom and gave the stock a "buy" rating in a report on Friday, June 6th. Wall Street Zen upgraded shares of Broadcom from a "hold" rating to a "buy" rating in a research report on Saturday, July 5th. The Goldman Sachs Group began coverage on shares of Broadcom in a report on Thursday, July 10th. They set a "buy" rating and a $315.00 target price for the company. Cantor Fitzgerald reiterated an "overweight" rating and issued a $300.00 price objective on shares of Broadcom in a research report on Friday, June 6th. Finally, Barclays upped their target price on Broadcom from $215.00 to $265.00 and gave the company an "overweight" rating in a report on Monday, June 9th. One analyst has rated the stock with a hold rating, twenty-seven have given a buy rating and three have assigned a strong buy rating to the stock. According to MarketBeat, Broadcom has a consensus rating of "Buy" and an average price target of $294.92.

Broadcom Price Performance

The company has a market capitalization of $1.43 trillion, a PE ratio of 113.54, a price-to-earnings-growth ratio of 2.08 and a beta of 1.15. The firm's 50 day simple moving average is $270.33 and its 200 day simple moving average is $225.92. The company has a quick ratio of 0.98, a current ratio of 1.08 and a debt-to-equity ratio of 0.89.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its quarterly earnings results on Thursday, June 5th. The semiconductor manufacturer reported $1.58 EPS for the quarter, topping analysts' consensus estimates of $1.57 by $0.01. The firm had revenue of $15 billion for the quarter, compared to analysts' expectations of $14.98 billion. Broadcom had a net margin of 22.64% and a return on equity of 35.49%. The business's revenue for the quarter was up 20.2% on a year-over-year basis. During the same period in the prior year, the business posted $10.96 earnings per share. As a group, research analysts anticipate that Broadcom Inc. will post 5.38 EPS for the current fiscal year.

Broadcom Announces Dividend

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. The ex-dividend date of this dividend was Friday, June 20th. This represents a $2.36 dividend on an annualized basis and a yield of 0.8%. Broadcom's dividend payout ratio is 88.39%.

Insider Activity at Broadcom

In other Broadcom news, CEO Hock E. Tan sold 117,758 shares of the stock in a transaction on Thursday, June 12th. The stock was sold at an average price of $252.91, for a total transaction of $29,782,175.78. Following the sale, the chief executive officer owned 1,014,152 shares of the company's stock, valued at approximately $256,489,182.32. This trade represents a 10.40% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Mark David Brazeal sold 50,000 shares of the company's stock in a transaction on Monday, June 23rd. The stock was sold at an average price of $253.28, for a total value of $12,664,000.00. Following the sale, the insider owned 415,956 shares of the company's stock, valued at $105,353,335.68. This trade represents a 10.73% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 830,516 shares of company stock worth $217,224,641 over the last quarter. Corporate insiders own 2.00% of the company's stock.

Institutional Trading of Broadcom

Institutional investors have recently modified their holdings of the company. Banco Bilbao Vizcaya Argentaria S.A. increased its position in Broadcom by 3.8% during the 4th quarter. Banco Bilbao Vizcaya Argentaria S.A. now owns 515,388 shares of the semiconductor manufacturer's stock valued at $120,070,000 after buying an additional 18,845 shares in the last quarter. PARUS FINANCE UK Ltd raised its holdings in shares of Broadcom by 175.3% in the first quarter. PARUS FINANCE UK Ltd now owns 100,578 shares of the semiconductor manufacturer's stock worth $16,840,000 after buying an additional 64,038 shares during the last quarter. Nebula Research & Development LLC increased its position in shares of Broadcom by 1,100.8% in the 4th quarter. Nebula Research & Development LLC now owns 15,707 shares of the semiconductor manufacturer's stock valued at $3,642,000 after acquiring an additional 14,399 shares during the period. Keener Financial Planning LLC lifted its position in Broadcom by 34.8% during the 1st quarter. Keener Financial Planning LLC now owns 890 shares of the semiconductor manufacturer's stock worth $149,000 after acquiring an additional 230 shares during the period. Finally, Diversify Wealth Management LLC increased its holdings in shares of Broadcom by 5.6% in the first quarter. Diversify Wealth Management LLC now owns 38,016 shares of the semiconductor manufacturer's stock valued at $6,365,000 after purchasing an additional 2,016 shares during the period. 76.43% of the stock is currently owned by 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.