Broadcom (NASDAQ:AVGO) Shares Down 5.6% - Should You Sell?

Broadcom Inc. (NASDAQ:AVGO - Get Free Report)'s share price fell 5.6% on Thursday . The stock traded as low as $172.55 and last traded at $174.86. 11,253,571 shares were traded during trading, a decline of 64% from the average session volume of 31,132,428 shares. The stock had previously closed at $185.15.

Wall Street Analyst Weigh In

Several equities research analysts have commented on the stock. Cantor Fitzgerald reaffirmed an "overweight" rating and issued a $300.00 target price on shares of Broadcom in a research note on Friday, March 7th. Morgan Stanley raised 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. Benchmark reissued a "buy" rating and issued a $255.00 target price on shares of Broadcom in a research note on Friday, March 7th. William Blair reiterated an "outperform" rating on shares of Broadcom in a report on Friday, March 7th. Finally, Rosenblatt Securities reissued a "buy" rating and set a $250.00 target price on shares of Broadcom in a research note on Friday, March 7th. Three analysts have rated the stock with a hold rating and twenty-five have given a buy rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $231.68.

Broadcom Stock Performance

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 stock has a 50-day moving average price of $195.52 and a 200-day moving average price of $196.11. The company has a market capitalization of $838.64 billion, a price-to-earnings ratio of 145.48, a PEG ratio of 2.29 and a beta of 1.05.

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Broadcom Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, March 31st. Shareholders of record on Thursday, March 20th were given a dividend of $0.59 per share. The ex-dividend date was Thursday, March 20th. This represents a $2.36 dividend on an annualized basis and a yield of 1.32%. Broadcom's dividend payout ratio (DPR) is 113.46%.

Broadcom announced that its Board of Directors has initiated a share repurchase program on Monday, April 7th that permits the company to buyback $10.00 billion in shares. This buyback authorization permits the semiconductor manufacturer to buy up to 1.4% of its stock through open market purchases. Stock buyback programs are typically an indication that the company's leadership believes its stock is undervalued.

Insider Buying and Selling

In other news, Director Henry Samueli sold 663,976 shares of Broadcom stock in a transaction on Wednesday, March 26th. The stock was sold at an average price of $181.60, for a total value of $120,578,041.60. Following the transaction, the director now owns 38,798,721 shares in the company, valued at approximately $7,045,847,733.60. This trade represents a 1.68 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Mark David Brazeal sold 30,000 shares of the business's stock in a transaction on Monday, March 24th. The stock was sold at an average price of $194.65, for a total transaction of $5,839,500.00. Following the sale, the insider now directly owns 490,956 shares in the company, valued at approximately $95,564,585.40. The trade was a 5.76 % decrease in their position. The disclosure for this sale can be found here. 2.00% of the stock is currently owned by insiders.

Institutional Trading of Broadcom

Hedge funds have recently made changes to their positions in the company. Canton Hathaway LLC acquired a new position in Broadcom in the 4th quarter valued at approximately $26,000. Rialto Wealth Management LLC acquired a new position in Broadcom during the 4th quarter worth about $26,000. Sunbeam Capital Management LLC acquired a new position in Broadcom during the 4th quarter worth about $28,000. Vermillion Wealth Management Inc. acquired a new stake in shares of Broadcom in the fourth quarter valued at about $30,000. Finally, Sellwood Investment Partners LLC bought a new position in shares of 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

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.