Broadcom (NASDAQ:AVGO) Shares Gap Up - Time to Buy?

Broadcom Inc. (NASDAQ:AVGO - Get Free Report) has seen its share price increase significantly ahead of market opening on Thursday. The stock changed from a previous close of $228.00 to an opening price of $235.22. It last traded at around $234.53, with a trading volume of approximately 3,930,561 shares.

Analysts Set New Price Targets

The stock has drawn attention from various analysts who have issued reports with updated price targets. Notably, HSBC Global Research recently upgraded Broadcom shares to a "hold" rating. Meanwhile, UBS Group adjusted their price target from $170.00 to $200.00, while also assigning a "buy" rating. Truist Financial increased their target from $205.00 to $245.00, maintaining a "buy" rating on the stock. In another report, JPMorgan Chase & Co. raised their price target from $210.00 to $250.00 and rated the stock as "overweight." Additionally, Mizuho revised their target from $245.00 to $260.00, giving it an "outperform" rating. In total, three analysts recommend a hold rating, while twenty-four have a buy rating. According to MarketBeat.com, Broadcom currently holds a consensus rating of "Moderate Buy" with an average price target of $223.54.

Broadcom Stock Up 2.8%

Broadcom's financial ratios reflect a stable position with a quick ratio of 1.07 and a current ratio of 1.17. Its debt-to-equity ratio sits at 0.98, and the company boasts a market capitalization of $1.10 trillion. The price-to-earnings (PE) ratio is 191.14, while the price-to-earnings growth (PEG) ratio is 2.35, and the stock has a beta of 1.03. The 50-day moving average for the stock is $199.05, compared to a 200-day moving average of $176.63.

Broadcom Increases Dividend

In a recent announcement, Broadcom disclosed a quarterly dividend which was paid on Tuesday, December 31st. Shareholders of record as of Monday, December 23rd received a dividend of $0.59 per share, an increase from the previous $0.53. This equates to an annualized dividend of $2.36 and a yield of 1.01%. The ex-dividend date was set to December 23rd, and the company’s dividend payout ratio (DPR) currently stands at 192.50%.

Insider Transactions at Broadcom

Recent insider trading activities included Director Check Kian Low who sold 48,000 shares on January 6th at an average price of $235.35, with the total transaction value reaching $11,296,800. This sale represents a 29.80% reduction in the director's holdings, which now total 113,050 shares valued at about $26,606,317.50. Additionally, Director Eddy W. Hartenstein sold 4,000 shares on January 8th for $229.64 per share, totaling $918,560. After this sale, he holds 46,400 shares valued at approximately $10,655,296, marking a 7.94% decrease in ownership. In total, insiders have sold about 191,278 shares worth $44,964,800 over the past three months, which accounts for 2.00% of the company's stock.

Institutional Investors Weigh In On Broadcom

Broadcom also saw significant movements from institutional investors recently. State Street Corp increased its holdings by 948.5% during the third quarter, now owning 184,434,213 shares valued at approximately $31.81 billion. Similarly, Geode Capital Management raised its stake by 976.6%, holding 99,188,826 shares worth around $17.06 billion. Other notable increases came from FMR LLC, Jennison Associates LLC, and UBS Asset Management, all of which significantly bolstered their positions during the same timeframe. Overall, institutional investors own about 76.43% of Broadcom stock.

Broadcom Company Profile

Broadcom Inc. designs and develops a wide range of semiconductor devices, with a particular emphasis on complex digital and mixed-signal complementary metal oxide semiconductor devices, as well as analog III-V based products. The company operates through two main segments: Semiconductor Solutions and Infrastructure Software.

Should You Invest $1,000 in Broadcom Right Now?

Considering the current situation of Broadcom, prospective investors may wonder about the wisdom of investing as the stock shows signs of growth. Despite a "Moderate Buy" rating from analysts, there are other investment opportunities that top analysts believe are more promising. Therefore, potential investors are encouraged to conduct thorough research before making any financial decisions.

Broadcom, Analysis, Stocks