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Broadcom (NASDAQ:AVGO) Rating Increased to Strong-Buy at Hsbc Global Res

Broadcom logo with Computer and Technology background

Hsbc Global Res upgraded shares of Broadcom (NASDAQ:AVGO - Free Report) from a hold rating to a strong-buy rating in a research report sent to investors on Tuesday,Zacks.com reports.

AVGO has been the topic of a number of other research reports. Seaport Res Ptn raised Broadcom to a "strong-buy" rating in a research note on Wednesday, April 30th. HSBC raised Broadcom from a "hold" rating to a "buy" rating and set a $400.00 price objective on the stock in a research note on Tuesday. Benchmark lifted their price objective on Broadcom from $255.00 to $315.00 and gave the stock a "buy" rating in a research note on Friday, June 6th. Erste Group Bank raised Broadcom from a "hold" rating to a "buy" rating in a research note on Thursday, June 5th. Finally, Bank of America boosted their target price on Broadcom from $240.00 to $300.00 and gave the company a "buy" rating in a research report on Friday, June 6th. Two research analysts have rated the stock with a hold rating, twenty-six have assigned a buy rating and two have issued a strong buy rating to the stock. According to MarketBeat, Broadcom currently has an average rating of "Buy" and a consensus price target of $281.25.

View Our Latest Stock Analysis on AVGO

Broadcom Price Performance

AVGO traded down $0.82 on Tuesday, hitting $269.35. 27,450,264 shares of the company's stock traded hands, compared to its average volume of 29,072,851. The company's 50 day simple moving average is $229.43 and its 200-day simple moving average is $215.28. The firm has a market cap of $1.27 trillion, a price-to-earnings ratio of 100.88, a P/E/G ratio of 1.92 and a beta of 1.11. Broadcom has a one year low of $128.50 and a one year high of $271.85. The company has a current ratio of 1.08, a quick ratio of 0.98 and a debt-to-equity ratio of 0.89.

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

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

Broadcom Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, June 30th. Investors of record on Friday, June 20th will be given a dividend of $0.59 per share. This represents a $2.36 annualized dividend and a yield of 0.88%. The ex-dividend date of this dividend is Friday, June 20th. Broadcom's dividend payout ratio is currently 88.39%.

Insider Activity at Broadcom

In other news, Director Justine Page sold 800 shares of the stock in a transaction dated Monday, April 14th. The stock was sold at an average price of $185.00, for a total value of $148,000.00. Following the transaction, the director now directly owns 25,380 shares of the company's stock, valued at approximately $4,695,300. This represents a 3.06% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Mark David Brazeal sold 25,000 shares of the stock in a transaction dated Friday, April 11th. The shares were sold at an average price of $180.00, for a total value of $4,500,000.00. Following the completion of the transaction, the insider now directly owns 465,956 shares in the company, valued at $83,872,080. This represents a 5.09% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 811,716 shares of company stock valued at $209,906,771 in the last ninety days. Corporate insiders own 2.00% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the company. Canton Hathaway LLC acquired a new position in shares of Broadcom in the fourth quarter valued at about $26,000. Rialto Wealth Management LLC acquired a new stake in Broadcom during the fourth quarter worth about $26,000. Sunbeam Capital Management LLC acquired a new stake in Broadcom during the fourth quarter worth about $28,000. Vermillion Wealth Management Inc. acquired a new stake in Broadcom during the fourth quarter worth about $30,000. Finally, Sellwood Investment Partners LLC acquired a new stake in Broadcom during the fourth quarter worth about $32,000. 76.43% of the stock is owned by institutional investors and hedge funds.

Broadcom Company Profile

(Get Free Report)

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.

Further Reading

Analyst Recommendations for Broadcom (NASDAQ:AVGO)

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