Broadcom (NASDAQ:AVGO) Shares Up 2.6% - Here's Why

Broadcom Inc. (NASDAQ:AVGO - Get Free Report) shares were up 2.6% during trading on Wednesday . The company traded as high as $163.53 and last traded at $160.16. Approximately 11,738,423 shares changed hands during mid-day trading, a decline of 62% from the average daily volume of 30,917,025 shares. The stock had previously closed at $156.03.

Wall Street Analyst Weigh In

Several brokerages have issued reports on AVGO. Truist Financial lifted their price target on Broadcom from $260.00 to $267.00 and gave the stock a "buy" rating in a research note on Friday, March 7th. Mizuho dropped their target price on Broadcom from $260.00 to $250.00 and set an "outperform" rating for the company in a research report on Friday, March 7th. Citigroup reduced their price target on shares of Broadcom from $220.00 to $210.00 and set a "buy" rating on the stock in a research report on Friday. Morgan Stanley boosted their price objective on shares of Broadcom from $246.00 to $260.00 and gave the stock an "overweight" rating in a report on Friday, March 7th. Finally, Benchmark reaffirmed a "buy" rating and set a $255.00 target price on shares of Broadcom in a report on Friday, March 7th. Three research analysts have rated the stock with a hold rating and twenty-five have assigned a buy rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $231.68.

Broadcom Stock Up 5.6 %

The company has a quick ratio of 1.07, a current ratio of 1.17 and a debt-to-equity ratio of 0.98. The stock has a market capitalization of $855.47 billion, a PE ratio of 148.40, a price-to-earnings-growth ratio of 2.29 and a beta of 1.05. The company's fifty day moving average price is $195.52 and its 200-day moving average price is $195.99.

Broadcom Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, March 31st. Shareholders of record on Thursday, March 20th were issued a $0.59 dividend. This represents a $2.36 annualized dividend and a yield of 1.30%. The ex-dividend date was Thursday, March 20th. Broadcom's dividend payout ratio (DPR) is 113.46%.

Broadcom announced that its board has authorized a share repurchase plan on Monday, April 7th that permits the company to buyback $10.00 billion in shares. This buyback authorization permits the semiconductor manufacturer to purchase up to 1.4% of its stock through open market purchases. Stock buyback plans are often an indication that the company's board believes its shares are undervalued.

Insiders Place Their Bets

In related news, Director Henry Samueli sold 663,976 shares of the firm's stock in a transaction that occurred on Wednesday, March 26th. The shares were sold at an average price of $181.60, for a total transaction of $120,578,041.60. Following the completion of the sale, the director now owns 38,798,721 shares of the company's stock, valued at $7,045,847,733.60. This trade represents a 1.68 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Mark David Brazeal sold 30,000 shares of the company's stock in a transaction on Monday, March 24th. The shares were sold at an average price of $194.65, for a total value of $5,839,500.00. Following 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 disclosure for this sale can be found here. Corporate insiders own 2.00% of the company's stock.

Institutional Investors Weigh In On Broadcom

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Perkins Coie Trust Co lifted its holdings in Broadcom by 0.8% in the first quarter. Perkins Coie Trust Co now owns 36,373 shares of the semiconductor manufacturer's stock valued at $6,090,000 after acquiring an additional 275 shares during the period. First City Capital Management Inc. lifted its stake in shares of Broadcom by 30.6% in the 1st quarter. First City Capital Management Inc. now owns 1,730 shares of the semiconductor manufacturer's stock worth $290,000 after purchasing an additional 405 shares during the period. Intergy Private Wealth LLC boosted its holdings in shares of Broadcom by 1.9% in the first quarter. Intergy Private Wealth LLC now owns 4,004 shares of the semiconductor manufacturer's stock worth $670,000 after buying an additional 73 shares during the last quarter. AAFMAA Wealth Management & Trust LLC grew its position in Broadcom by 19.7% during the first quarter. AAFMAA Wealth Management & Trust LLC now owns 14,828 shares of the semiconductor manufacturer's stock valued at $2,483,000 after buying an additional 2,442 shares during the period. Finally, GGM Financials LLC purchased a new position in shares of Broadcom during the 1st quarter worth $386,000. Hedge funds and other institutional investors own 76.43% of the company's stock.

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.