Broadcom Inc. (NASDAQ:AVGO) Receives Consensus Recommendation of "Moderate Buy" from Brokerages

Key Points

• Broadcom holds a “Moderate Buy” consensus rating from 41 brokerages: 37 recommend buying, three rate it a hold, and one issues a strong-buy rating. The average 12-month price target is $527.20.
• Broadcom reported quarterly EPS of $3.32, beating estimates of $3.22, while revenue rose 85.5% year over year to $29.59 billion. Analysts expect full-year EPS of approximately $10.36.
• Shares opened at $349.57, down 0.9%, with a market capitalization of $1.67 trillion. Insiders sold $20.2 million of stock over the past 90 days, while institutional investors own 76.43% of the company.

Broadcom Inc. (NASDAQ:AVGO - Get Free Report) has been assigned an average rating of "Moderate Buy" from the forty-one brokerages that are presently covering the stock, MarketBeat Ratings reports. Three research analysts have rated the stock with a hold rating, thirty-seven have issued a buy rating and one has issued a strong buy rating on the company. The average 12 month price objective among brokers that have issued a report on the stock in the last year is $527.20.

Several equities analysts recently weighed in on the stock. Evercore set a $578.00 target price on shares of Broadcom and gave the company an "outperform" rating in a research note on Thursday, September 3rd. Rosenblatt Securities started coverage on Broadcom in a research report on Thursday, September 3rd. They set a "buy" rating and a $600.00 price objective for the company. TD Cowen reaffirmed a "buy" rating and issued a $475.00 target price (down from $500.00) on shares of Broadcom in a report on Thursday, September 3rd. Raymond James Financial reissued an "outperform" rating and set a $475.00 price target (up from $450.00) on shares of Broadcom in a research note on Thursday, September 3rd. Finally, Mizuho lifted their price objective on Broadcom from $480.00 to $530.00 and gave the stock an "outperform" rating in a research note on Thursday, June 4th.

Insiders Place Their Bets

In related news, Director Gayla Delly sold 1,890 shares of the company's stock in a transaction on Wednesday, July 8th. The shares were sold at an average price of $385.38, for a total transaction of $728,368.20. Following the sale, the director owned 31,326 shares of the company's stock, valued at $12,072,413.88. This represents a 5.69% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Mark Brazeal sold 25,000 shares of the stock in a transaction on Friday, July 10th. The shares were sold at an average price of $401.33, for a total transaction of $10,033,250.00. Following the transaction, the insider owned 194,989 shares of the company's stock, valued at $78,254,935.37. This trade represents a 11.36% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 51,890 shares of company stock worth $20,241,368. 1.90% of the stock is owned by insiders.

Institutional Investors Weigh In On Broadcom

Several large investors have recently added to or reduced their stakes in AVGO. QRG Capital Management Inc. raised its position in Broadcom by 10.1% during the second quarter. QRG Capital Management Inc. now owns 864,506 shares of the semiconductor manufacturer's stock valued at $323,796,000 after purchasing an additional 79,451 shares during the period. Envestnet Portfolio Solutions Inc. boosted its holdings in shares of Broadcom by 9.4% in the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 227,394 shares of the semiconductor manufacturer's stock worth $85,882,000 after purchasing an additional 19,465 shares during the period. Envestnet Asset Management Inc. boosted its holdings in shares of Broadcom by 9.9% in the 2nd quarter. Envestnet Asset Management Inc. now owns 8,133,536 shares of the semiconductor manufacturer's stock worth $3,003,100,000 after purchasing an additional 735,257 shares during the period. Andra AP fonden boosted its holdings in shares of Broadcom by 25.9% in the 2nd quarter. Andra AP fonden now owns 817,960 shares of the semiconductor manufacturer's stock worth $308,984,000 after purchasing an additional 168,260 shares during the period. Finally, State Street Corp increased its position in shares of Broadcom by 8.7% during the 2nd quarter. State Street Corp now owns 208,031,610 shares of the semiconductor manufacturer's stock valued at $75,367,711,000 after purchasing an additional 16,651,378 shares during the last quarter. 76.43% of the stock is owned by institutional investors.

Broadcom Stock Down 0.9%

NASDAQ AVGO opened at $349.57 on Tuesday. Broadcom has a 12 month low of $289.96 and a 12 month high of $495.00. The company has a current ratio of 2.50, a quick ratio of 2.29 and a debt-to-equity ratio of 0.57. The stock has a market cap of $1.67 trillion, a PE ratio of 44.65 and a beta of 1.44. The stock's 50 day moving average is $375.79 and its 200 day moving average is $380.50.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its quarterly earnings data on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.22 by $0.10. Broadcom had a net margin of 42.94% and a return on equity of 48.33%. The business had revenue of $29.59 billion during the quarter, compared to analyst estimates of $29.24 billion. During the same period last year, the firm posted $1.69 EPS. The company's revenue was up 85.5% on a year-over-year basis. Research analysts predict that Broadcom will post 10.36 EPS for the current fiscal year.

Broadcom Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Monday, September 21st will be issued a $0.65 dividend. The ex-dividend date of this dividend is Monday, September 21st. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.7%. Broadcom's dividend payout ratio (DPR) is 33.21%.

Broadcom Company Profile

Broadcom Inc NASDAQ: AVGO is a global technology company that designs, develops, and supplies semiconductor and infrastructure software products. Its semiconductor solutions support wired and wireless communications, data center networking, broadband access, storage, industrial applications, and other markets.

The company's semiconductor portfolio includes networking and switching products, custom application-specific integrated circuits, wireless connectivity components, radio-frequency devices, optical components, and storage-related solutions.

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