Broadcom (NASDAQ:AVGO) Trading Down 1.8% on Insider Selling

Broadcom Inc. (NASDAQ:AVGO - Get Free Report)'s stock price fell 1.8% during mid-day trading on Friday following insider selling activity. The company traded as low as $226.39 and last traded at $228.53. 6,522,018 shares were traded during trading, a decline of 79% from the average session volume of 31,128,439 shares. The stock had previously closed at $232.64.

Specifically, Director Justine Page sold 800 shares of the firm's stock in a transaction dated Wednesday, May 14th. The stock was sold at an average price of $230.19, for a total transaction of $184,152.00. Following the sale, the director now directly owns 26,182 shares in the company, valued at approximately $6,026,834.58. This trade represents a 2.96% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link.

Wall Street Analyst Weigh In

Several research analysts have recently commented on AVGO shares. Mizuho decreased their target price on Broadcom from $260.00 to $250.00 and set an "outperform" rating for the company in a research report on Friday, March 7th. Morgan Stanley boosted their price objective on Broadcom from $246.00 to $260.00 and gave the stock an "overweight" rating in a research note on Friday, March 7th. KeyCorp boosted their target price on Broadcom from $260.00 to $275.00 and gave the stock an "overweight" rating in a research report on Friday, March 7th. Cantor Fitzgerald reissued an "overweight" rating and set a $300.00 price target on shares of Broadcom in a research report on Friday, March 7th. Finally, Benchmark reissued a "buy" rating and set a $255.00 price target on shares of Broadcom in a research report on Friday, March 7th. Three equities research analysts have rated the stock with a hold rating, twenty-five have assigned a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, Broadcom has an average rating of "Moderate Buy" and a consensus target price of $229.48.

Broadcom Stock Down 1.7%

The stock has a market cap of $1.07 trillion, a PE ratio of 186.47, a PEG ratio of 2.29 and a beta of 1.04. The company has a debt-to-equity ratio of 0.98, a current ratio of 1.17 and a quick ratio of 1.07. The company has a 50 day moving average price of $187.08 and a two-hundred day moving average price of $199.41.

Broadcom Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Monday, March 31st. Shareholders of record on Thursday, March 20th were issued a dividend of $0.59 per share. This represents a $2.36 annualized dividend and a yield of 1.03%. The ex-dividend date was Thursday, March 20th. Broadcom's dividend payout ratio is presently 113.46%.

Broadcom declared that its Board of Directors has approved a share repurchase plan on Monday, April 7th that permits the company to buyback $10.00 billion in shares. This buyback authorization permits the semiconductor manufacturer to repurchase up to 1.4% of its shares through open market purchases. Shares buyback plans are typically an indication that the company's management believes its shares are undervalued.

Hedge Funds Weigh In On Broadcom

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Canton Hathaway LLC purchased a new stake in shares of Broadcom in the fourth quarter worth approximately $26,000. Rialto Wealth Management LLC bought a new stake in Broadcom during the 4th quarter valued at $26,000. Sunbeam Capital Management LLC bought a new stake in Broadcom during the 4th quarter valued at $28,000. Vermillion Wealth Management Inc. bought a new stake in Broadcom during the 4th quarter valued at $30,000. Finally, Sellwood Investment Partners LLC bought a new stake in Broadcom during the 4th quarter valued at $32,000. 76.43% of the stock is owned by institutional investors.

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.