Broadcom (NASDAQ:AVGO) Shares Gap Down After Insider Selling

Broadcom Inc. (NASDAQ:AVGO - Get Free Report)'s stock price gapped down before the market opened on Wednesday after an insider sold shares in the company. The stock had previously closed at $178.95, but opened at $170.43. Broadcom shares last traded at $175.86, with a volume of 4,808,925 shares.

Specifically, Director Justine Page sold 800 shares of the stock in a transaction on Monday, April 14th. The shares were sold at an average price of $185.00, for a total value of $148,000.00. Following the sale, the director now 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 legal filing with the SEC, which can be accessed through this link. Also, insider Mark David Brazeal sold 25,000 shares of the business's stock in a transaction on Friday, April 11th. The shares were sold at an average price of $180.00, for a total transaction of $4,500,000.00. Following the sale, the insider now directly owns 465,956 shares of the company's stock, 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.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on the company. 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. Mizuho lowered their price target on Broadcom from $260.00 to $250.00 and set an "outperform" rating for the company in a report on Friday, March 7th. Bank of America dropped their price objective on shares of Broadcom from $260.00 to $240.00 and set a "buy" rating on the stock in a report on Wednesday. Barclays lifted their price objective on shares of Broadcom from $205.00 to $260.00 and gave the company an "overweight" rating in a research note on Friday, January 17th. Finally, William Blair restated an "outperform" rating on shares of Broadcom in a research report on Friday, March 7th. Three investment analysts have rated the stock with a hold rating and twenty-five have given a buy rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $231.28.

Broadcom Stock Performance

The company has a current ratio of 1.17, a quick ratio of 1.07 and a debt-to-equity ratio of 0.98. The company's 50-day moving average price is $189.84 and its two-hundred day moving average price is $195.90. The company has a market cap of $803.99 billion, a P/E ratio of 139.47, a price-to-earnings-growth ratio of 2.29 and a beta of 1.05.

Broadcom Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Monday, March 31st. Stockholders of record on Thursday, March 20th were given a dividend of $0.59 per share. The ex-dividend date of this dividend was Thursday, March 20th. This represents a $2.36 dividend on an annualized basis and a dividend yield of 1.38%. Broadcom's dividend payout ratio (DPR) is presently 113.46%.

Broadcom declared that its Board of Directors has authorized a share buyback program on Monday, April 7th that authorizes the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization authorizes the semiconductor manufacturer to buy up to 1.4% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company's management believes its stock is undervalued.

Institutional Trading of Broadcom

A number of hedge funds have recently bought and sold shares of AVGO. Wolf Group Capital Advisors raised its stake in Broadcom by 586.5% during the 1st quarter. Wolf Group Capital Advisors now owns 16,338 shares of the semiconductor manufacturer's stock valued at $2,735,000 after purchasing an additional 13,958 shares during the period. Cornerstone Wealth Management LLC grew its holdings in shares of Broadcom by 41.5% during the first quarter. Cornerstone Wealth Management LLC now owns 14,257 shares of the semiconductor manufacturer's stock valued at $2,387,000 after buying an additional 4,179 shares in the last quarter. Shepherd Financial Partners LLC raised its position in Broadcom by 3.1% during the first quarter. Shepherd Financial Partners LLC now owns 29,520 shares of the semiconductor manufacturer's stock valued at $4,943,000 after buying an additional 889 shares during the period. Clarius Group LLC boosted its position in Broadcom by 8.0% during the 1st quarter. Clarius Group LLC now owns 31,481 shares of the semiconductor manufacturer's stock worth $5,271,000 after acquiring an additional 2,323 shares during the period. Finally, Market Street Wealth Management Advisors LLC grew its stake in Broadcom by 66.9% during the 1st quarter. Market Street Wealth Management Advisors LLC now owns 1,469 shares of the semiconductor manufacturer's stock valued at $246,000 after acquiring an additional 589 shares in the last quarter. 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.