Broadcom (NASDAQ:AVGO) Trading Down 0.8% - Here's Why

Broadcom Inc. (NASDAQ:AVGO - Get Free Report) dropped 0.8% during mid-day trading on Thursday . The company traded as low as $220.80 and last traded at $221.85. Approximately 12,754,476 shares were traded during trading, a decline of 57% from the average daily volume of 29,987,789 shares. The stock had previously closed at $223.62.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on the company. UBS Group increased their target price on Broadcom from $170.00 to $200.00 and gave the company a "buy" rating in a research note on Monday, November 4th. Cantor Fitzgerald boosted their target price on Broadcom from $200.00 to $225.00 and gave the stock an "overweight" rating in a research report on Tuesday, October 8th. Bank of America lifted their price target on shares of Broadcom from $215.00 to $250.00 and gave the stock a "buy" rating in a research note on Friday, December 13th. Deutsche Bank Aktiengesellschaft increased their target price on shares of Broadcom from $190.00 to $240.00 and gave the company a "buy" rating in a report on Friday, December 13th. Finally, Mizuho boosted their price target on shares of Broadcom from $190.00 to $220.00 and gave the stock an "outperform" rating in a research note on Monday, October 14th. Three investment analysts have rated the stock with a hold rating and twenty-four have issued a buy rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $220.54.

Broadcom Stock Down 2.4 %

The firm has a market cap of $1.02 trillion, a PE ratio of 189.68, a PEG ratio of 2.15 and a beta of 1.13. The stock has a 50 day simple moving average of $178.05 and a 200-day simple moving average of $166.48. The company has a debt-to-equity ratio of 1.02, a current ratio of 1.04 and a quick ratio of 0.94.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its quarterly earnings data on Thursday, December 12th. The semiconductor manufacturer reported $1.42 EPS for the quarter, beating the consensus estimate of $1.39 by $0.03. The company had revenue of $14.05 billion for the quarter, compared to the consensus estimate of $14.07 billion. Broadcom had a net margin of 10.88% and a return on equity of 30.12%. Broadcom's revenue for the quarter was up 51.2% on a year-over-year basis. During the same period in the prior year, the firm posted $0.98 EPS. Sell-side analysts predict that Broadcom Inc. will post 3.79 EPS for the current fiscal year.

Broadcom Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, December 31st. Shareholders of record on Monday, December 23rd will be issued a $0.59 dividend. This is a positive change from Broadcom's previous quarterly dividend of $0.53. The ex-dividend date is Monday, December 23rd. This represents a $2.36 dividend on an annualized basis and a dividend yield of 1.08%. Broadcom's dividend payout ratio (DPR) is presently 191.87%.

Insider Transactions at Broadcom

In related news, Director Harry L. You sold 6,540 shares of the business's stock in a transaction that occurred on Tuesday, December 17th. The stock was sold at an average price of $240.00, for a total value of $1,569,600.00. Following the transaction, the director now directly owns 30,450 shares of the company's stock, valued at approximately $7,308,000. The trade was a 17.68 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Charlie B. Kawwas sold 15,950 shares of the stock in a transaction that occurred on Friday, October 11th. The shares were sold at an average price of $181.44, for a total transaction of $2,893,968.00. Following the sale, the insider now directly owns 737,330 shares of the company's stock, valued at approximately $133,781,155.20. This trade represents a 2.12 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 242,420 shares of company stock worth $42,701,286 over the last three months. 2.00% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Broadcom

Several institutional investors have recently bought and sold shares of the stock. Kiely Wealth Advisory Group Inc. bought a new stake in shares of Broadcom in the second quarter worth about $128,000. Mark Sheptoff Financial Planning LLC bought a new stake in Broadcom in the 2nd quarter worth approximately $136,000. American Capital Advisory LLC purchased a new stake in shares of Broadcom during the 2nd quarter worth approximately $169,000. Semus Wealth Partners LLC purchased a new position in shares of Broadcom in the second quarter valued at $202,000. Finally, Palisades Hudson Asset Management L.P. bought a new stake in Broadcom in the second quarter worth $204,000. 76.43% of the stock is owned by hedge funds and other 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.