Broadcom (NASDAQ:AVGO) Stock Price Down 0% - Should You Sell?

Broadcom Inc. (NASDAQ:AVGO) saw its stock price drop by 0% on Wednesday. The stock traded as low as $162.69 before settling at $164.74. During mid-day trading, about 16,308,772 shares changed hands, which is a 15% decrease from the typical daily volume of 19,165,998 shares. The previous closing price was $164.82.

Wall Street Analyst Opinions

Several analysts have shared their perspectives on Broadcom recently. TD Cowen upgraded the company to a "strong-buy" rating on September 16th. Additionally, JPMorgan Chase & Co. raised their price target for Broadcom from $200.00 to $210.00 and labeled it as "overweight" on September 6th. The Goldman Sachs Group also increased their price target from $185.00 to $190.00 with a "buy" rating on the same day. Moreover, Rosenblatt Securities adjusted their target price from $2,400.00 to $240.00 while maintaining a "buy" rating. Benchmark reaffirmed a "buy" rating with a price target of $210.00. In total, two analysts offered a hold rating, twenty-three assigned a buy rating, and one provided a strong buy rating for the company. According to MarketBeat, Broadcom has an average rating of "Moderate Buy" and an average target price of $195.96.

Broadcom Stock Analysis

The current fifty-day moving average price for Broadcom is $173.76, with a 200-day moving average price at $161.09. The company has a market capitalization of $769.43 billion, a PE ratio of 143.13, and a price-to-earnings-growth ratio of 1.94. Broadcom’s debt-to-equity ratio stands at 1.02, while its current ratio is 1.04 and quick ratio at 0.94.

Recent Earnings Report

Broadcom published its quarterly earnings report on September 5th. The semiconductor firm recorded $1.24 earnings per share, exceeding the consensus estimate of $1.20 by $0.04. The revenue reached $13.07 billion, surpassing the analysts' expectations of $12.98 billion. Broadcom achieved a net margin of 10.88% and a return on equity of 30.12%. The quarterly revenue increased by 47.3% compared to the previous year; last year's EPS for the same quarter was $0.95. Analysts predict that Broadcom Inc. will achieve an EPS of 3.78 for the current year.

Dividend Announcement

Broadcom also declared a quarterly dividend which was paid out on September 30th. Shareholders recorded as of September 19th received a $0.53 dividend per share, which brings the annualized dividend to $2.12, translating to a dividend yield of 1.29%. This dividend is an increase from the previous $0.53 quarterly payment. The ex-dividend date was September 19th, and Broadcom's current dividend payout ratio is 184.19%.

Insider Trading Activities

Recent transactions involving insiders at Broadcom show some selling activity. On October 9th, insider Mark David Brazeal sold 18,900 shares at an average price of $182.88, totaling $3,456,432. Following this sale, they now own 380,560 shares valued at $69,596,812.80, marking a 4.73% decrease in their ownership. Similarly, on September 24th, CEO Hock E. Tan sold 150,000 shares at an average price of $172.94 for $25,941,000.00. Following this transaction, he retains 1,181,910 shares currently worth $204,399,515.40, reflecting an 11.26% reduction in ownership. Over the last 90 days, insiders sold 311,080 shares, valued at $53,540,590, amounting to 2.00% of the company's stock being held by insiders.

Hedge Fund Involvement

Large investors have been adjusting their positions in Broadcom recently. Lion Street Advisors LLC increased its stake by 1.9% during the second quarter, now owning 324 shares worth $520,000 after acquiring an additional 6 shares. Optimum Investment Advisors raised its holdings by 0.6% in the same period, giving them 1,409 shares valued at $2,262,000 after purchasing 8 more shares. Other firms, such as Anderson Hoagland & Co. and Wealth Group Ltd, also slightly adjusted their stakes. Overall, institutional investors hold 76.43% of Broadcom's stocks.

Broadcom Company Overview

Broadcom Inc. specializes in designing, developing, and supplying multiple semiconductor devices focusing on digital and mixed signal complementary metal oxide semiconductor-based devices as well as analog III-V products globally. The company operates under two segments: Semiconductor Solutions and Infrastructure Software.

Conclusion: Should You Sell?

While Broadcom currently has a "Buy" rating among analysts, it is worth noting that top-rated analysts have identified five other stocks as potentially better investment opportunities. Investors are encouraged to conduct further research or consult with financial advisors before making any decisions regarding Broadcom stocks.

Broadcom, Stocks, Analysis