Broadcom (NASDAQ:AVGO) Stock Price Down 1.6% - Here's Why

Shares of Broadcom Inc. (NASDAQ:AVGO - Get Free Report) dropped 1.6% during trading on Monday . The company traded as low as $189.33 and last traded at $189.26. Approximately 4,162,276 shares changed hands during trading, a decline of 87% from the average daily volume of 31,206,946 shares. The stock had previously closed at $192.31.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on AVGO shares. KeyCorp upped their price objective on Broadcom from $260.00 to $275.00 and gave the company an "overweight" rating in a research note on Friday, March 7th. Bank of America cut their price target on shares of Broadcom from $260.00 to $240.00 and set a "buy" rating on the stock in a report on Wednesday, April 16th. Citigroup decreased their price objective on Broadcom from $220.00 to $210.00 and set a "buy" rating for the company in a report on Friday, April 11th. William Blair reaffirmed an "outperform" rating on shares of Broadcom in a report on Friday, March 7th. Finally, Mizuho decreased their price target on Broadcom from $260.00 to $250.00 and set an "outperform" rating for the company in a research note 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. According to data from MarketBeat.com, Broadcom has a consensus rating of "Moderate Buy" and an average target price of $229.48.

Broadcom Stock Performance

The firm has a market cap of $892.27 billion, a P/E ratio of 154.88, a PEG ratio of 2.29 and a beta of 1.05. The company's 50-day moving average is $184.36 and its two-hundred day moving average is $196.17. The company has a current ratio of 1.17, a quick ratio of 1.07 and a debt-to-equity ratio of 0.98.

Broadcom Dividend Announcement

The company also recently announced 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 of this dividend was Thursday, March 20th. This represents a $2.36 annualized dividend and a dividend yield of 1.24%. Broadcom's dividend payout ratio is currently 113.46%.

Broadcom announced that its Board of Directors has approved a share buyback plan on Monday, April 7th that allows the company to buyback $10.00 billion in shares. This buyback authorization allows the semiconductor manufacturer to repurchase up to 1.4% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's management believes its stock is undervalued.

Insider Buying and Selling

In other news, insider Mark David Brazeal sold 30,000 shares of Broadcom stock in a transaction on Monday, March 24th. The stock was sold at an average price of $194.65, for a total value of $5,839,500.00. Following the completion of the transaction, 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 ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Henry Samueli sold 663,976 shares of the firm's stock in a transaction dated 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 completion of the transaction, the director now owns 38,798,721 shares of the company's stock, valued at approximately $7,045,847,733.60. This represents a 1.68 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 719,776 shares of company stock worth $131,065,542. 2.00% of the stock is owned by company insiders.

Hedge Funds Weigh In On Broadcom

A number of large investors have recently modified their holdings of the company. Barnes Dennig Private Wealth Management LLC bought a new stake in Broadcom during the first quarter valued at approximately $25,000. Canton Hathaway LLC bought a new position in shares of Broadcom in the fourth quarter worth approximately $26,000. Rialto Wealth Management LLC purchased a new position in shares of Broadcom in the fourth quarter valued at about $26,000. Inlight Wealth Management LLC purchased a new stake in Broadcom in the 1st quarter worth approximately $26,000. Finally, Sunbeam Capital Management LLC bought a new stake in shares of Broadcom in the 4th quarter worth approximately $28,000. 76.43% of the stock is currently owned by 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.

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