Broadcom (NASDAQ:AVGO) Trading Up 2.1% - What's Next?

Shares of Broadcom Inc. (NASDAQ:AVGO - Get Free Report) were up 2.1% during mid-day trading on Wednesday . The company traded as high as $269.63 and last traded at $270.20. Approximately 5,083,491 shares were traded during mid-day trading, a decline of 82% from the average daily volume of 28,728,301 shares. The stock had previously closed at $264.74.

Analyst Ratings Changes

Several analysts have commented on the stock. Cowen reiterated a "buy" rating on shares of Broadcom in a research report on Friday, June 6th. Mizuho boosted their price objective on shares of Broadcom from $310.00 to $315.00 and gave the company an "outperform" rating in a report on Thursday. KeyCorp upped their target price on shares of Broadcom from $260.00 to $275.00 and gave the company an "overweight" rating in a research note on Friday, March 7th. Susquehanna lifted their price target on shares of Broadcom from $280.00 to $300.00 and gave the stock a "positive" rating in a research report on Friday, June 6th. Finally, Seaport Res Ptn upgraded shares of Broadcom to a "strong-buy" rating in a research report on Wednesday, April 30th. Two equities research analysts have rated the stock with a hold rating, twenty-six have given a buy rating and two have given a strong buy rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Buy" and an average target price of $281.46.

Broadcom Trading Up 1.8%

The company has a market cap of $1.29 trillion, a price-to-earnings ratio of 102.95, a P/E/G ratio of 1.88 and a beta of 1.12. The firm has a fifty day moving average price of $235.38 and a 200 day moving average price of $216.81. The company has a debt-to-equity ratio of 0.89, a quick ratio of 0.98 and a current ratio of 1.08.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its earnings results 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 the consensus estimate of $14.98 billion. During the same quarter in the prior year, the business earned $10.96 earnings per share. The firm's revenue for the quarter was up 20.2% on a year-over-year basis. As a group, equities analysts predict that Broadcom Inc. will post 5.38 EPS for the current fiscal year.

Broadcom Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Monday, June 30th. Shareholders of record on Friday, June 20th were paid a dividend of $0.59 per share. 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 0.86%. Broadcom's payout ratio is 88.39%.

Broadcom declared that its Board of Directors has initiated a stock buyback plan on Monday, April 7th that allows the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization allows the semiconductor manufacturer to buy up to 1.4% of its stock through open market purchases. Stock repurchase plans are often an indication that the company's board believes its stock is undervalued.

Insider Activity at Broadcom

In related news, CEO Hock E. Tan sold 117,758 shares of the firm's stock in a transaction dated Thursday, June 12th. The stock was sold at an average price of $252.91, for a total value of $29,782,175.78. Following the sale, the chief executive officer directly owned 1,014,152 shares of the company's stock, valued at $256,489,182.32. This trade represents a 10.40% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Director Henry Samueli sold 473,898 shares of the company's stock in a transaction that occurred on Wednesday, June 25th. The stock was sold at an average price of $265.33, for a total transaction of $125,739,356.34. Following the transaction, the director owned 38,188,575 shares of the company's stock, valued at approximately $10,132,574,604.75. This represents a 1.23% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 854,716 shares of company stock worth $221,433,761 in the last three months. Insiders own 2.00% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. Barnes Dennig Private Wealth Management LLC acquired a new stake in Broadcom in the first quarter valued at $25,000. Cheviot Value Management LLC bought a new stake in shares of Broadcom in the 1st quarter valued at about $25,000. Rialto Wealth Management LLC acquired a new stake in shares of Broadcom in the fourth quarter valued at about $26,000. Inlight Wealth Management LLC bought a new position in shares of Broadcom during the first quarter worth about $26,000. Finally, Sunbeam Capital Management LLC acquired a new position in shares of Broadcom in the fourth quarter worth approximately $28,000. Institutional investors own 76.43% of the company's stock.

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.