Broadcom (NASDAQ:AVGO) Trading 0.2% Higher - Here's Why

Broadcom Inc. (NASDAQ:AVGO - Get Free Report)'s share price shot up 0.2% during trading on Thursday . The stock traded as high as $166.34 and last traded at $163.50. 6,678,341 shares were traded during mid-day trading, a decline of 77% from the average session volume of 29,265,527 shares. The stock had previously closed at $163.25.

Analyst Upgrades and Downgrades

A number of analysts have issued reports on AVGO shares. TD Cowen raised Broadcom to a "strong-buy" rating in a research report on Monday, September 16th. Cantor Fitzgerald boosted their price objective on Broadcom from $200.00 to $225.00 and gave the company an "overweight" rating in a research note on Tuesday, October 8th. Benchmark reiterated a "buy" rating and set a $210.00 target price on shares of Broadcom in a research report on Friday, September 6th. Rosenblatt Securities lowered their price target on shares of Broadcom from $2,400.00 to $240.00 and set a "buy" rating on the stock in a research report on Friday, September 6th. Finally, William Blair started coverage on shares of Broadcom in a research report on Wednesday, September 18th. They issued an "outperform" rating on the stock. Two research analysts have rated the stock with a hold rating, twenty-four have issued a buy rating and one has assigned a strong buy rating to the company's stock. According to data from MarketBeat, Broadcom has an average rating of "Moderate Buy" and an average price target of $192.79.

Broadcom Stock Up 0.7 %

The firm has a market cap of $768.03 billion, a PE ratio of 142.05, a PEG ratio of 1.94 and a beta of 1.17. The company's 50 day moving average price is $173.78 and its two-hundred day moving average price is $160.09. The company has a current ratio of 1.04, a quick ratio of 0.94 and a debt-to-equity ratio of 1.02.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its quarterly earnings results on Thursday, September 5th. The semiconductor manufacturer reported $1.24 EPS for the quarter, topping analysts' consensus estimates of $1.20 by $0.04. The company had revenue of $13.07 billion for the quarter, compared to analysts' expectations of $12.98 billion. Broadcom had a return on equity of 30.12% and a net margin of 10.88%. The firm's revenue was up 47.3% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.95 EPS. On average, equities research analysts expect that Broadcom Inc. will post 3.78 EPS for the current fiscal year.

Broadcom Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, September 30th. Shareholders of record on Thursday, September 19th were paid a $0.53 dividend. The ex-dividend date was Thursday, September 19th. This represents a $2.12 annualized dividend and a yield of 1.29%. This is a boost from Broadcom's previous quarterly dividend of $0.53. Broadcom's payout ratio is presently 184.19%.

Insider Activity

In related news, CEO Hock E. Tan sold 50,000 shares of Broadcom stock in a transaction dated Tuesday, September 17th. The stock was sold at an average price of $163.37, for a total value of $8,168,500.00. Following the completion of the transaction, the chief executive officer now owns 1,331,910 shares in the company, valued at approximately $217,594,136.70. This trade represents a 3.62 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Charlie B. Kawwas sold 25,200 shares of the firm's stock in a transaction that occurred on Thursday, September 19th. The shares were sold at an average price of $168.27, for a total value of $4,240,404.00. Following the completion of the sale, the insider now directly owns 753,280 shares of the company's stock, valued at $126,754,425.60. The trade was a 3.24 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 311,080 shares of company stock worth $53,540,590 over the last 90 days. Corporate insiders own 2.00% of the company's stock.

Hedge Funds Weigh In On Broadcom

Several large investors have recently modified their holdings of AVGO. K2 Principal Fund L.P. bought a new position in shares of Broadcom during the 1st quarter valued at approximately $1,922,000. Canada Pension Plan Investment Board grew its position in Broadcom by 13.5% in the 1st quarter. Canada Pension Plan Investment Board now owns 461,306 shares of the semiconductor manufacturer's stock valued at $611,420,000 after acquiring an additional 54,780 shares during the last quarter. Envoi LLC bought a new stake in shares of Broadcom during the first quarter worth $265,000. Stonebridge Capital Advisors LLC boosted its stake in shares of Broadcom by 18.9% during the first quarter. Stonebridge Capital Advisors LLC now owns 226 shares of the semiconductor manufacturer's stock valued at $300,000 after purchasing an additional 36 shares during the period. Finally, Gamco Investors INC. ET AL lifted its holdings in Broadcom by 80.5% during the 1st quarter. Gamco Investors INC. ET AL now owns 897 shares of the semiconductor manufacturer's stock valued at $1,189,000 after buying an additional 400 shares in the last quarter. 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.

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