Broadcom (NASDAQ:AVGO) Trading 0.5% Higher - What's Next?

Broadcom Inc. (NASDAQ:AVGO) saw its shares increase by 0.5% on Friday. The stock reached a high of $182.71 before settling at $182.39. Trading activity involved 4,756,222 shares, marking an 84% decline from the typical session volume of 30,601,725 shares. The previous closing price was $181.53.

Recent Analyst Ratings

Analysts have changed their ratings for Broadcom. On July 16th, Oppenheimer cut their target price from $2,000.00 to $200.00 while maintaining an "outperform" rating. Conversely, JPMorgan Chase & Co. raised their target from $200.00 to $210.00 on September 6th and tagged Broadcom with an "overweight" rating. Also on September 6th, Morgan Stanley adjusted their price target upward from $176.00 to $180.00, keeping an "overweight" rating as well.

Further, Rosenblatt Securities reduced their target forecast from $2,400.00 to $240.00 with a "buy" rating on the same day. Additionally, Bank of America increased their price target from $200.00 to $215.00 on June 24th while maintaining a "buy" rating. Overall, two analysts have rated Broadcom as a hold, twenty-four rated it as a buy, and one issued a strong buy rating. As per MarketBeat, the average rating for Broadcom is "Moderate Buy" with a price target consensus of $191.54.

Performance Snapshot

Currently, Broadcom’s financial ratios show a current ratio of 1.04 and a quick ratio of 0.94, alongside a debt-to-equity ratio of 1.02. The stock's fifty-day moving average stands at $165.88, while the two-hundred-day moving average is at $152.92. Broadcom boasts a market capitalization of $835.55 billion, a price-to-earnings (PE) ratio of 7.84, a PEG ratio of 2.99, and a beta of 1.17.

Earnings Report Highlights

On September 5th, Broadcom released its quarterly earnings. The semiconductor company announced an earnings per share (EPS) of $1.24, exceeding estimates of $1.20 by $0.04. Revenue for the quarter was reported at $13.07 billion, surpassing the consensus estimate of $12.98 billion. They registered a net margin of 10.88% and achieved a return on equity of 30.12%. Comparing this to the same quarter one year ago, the quarterly revenue increased by 47.3%. Analysts expect Broadcom to post an EPS of 3.78 for the current fiscal year.

Dividend Announcement

Broadcom has recently declared an increase in its quarterly dividend, which was distributed on September 30th. Shareholders recorded on September 19th received a dividend of $0.53 per share, consistent with the previous quarterly distribution. This leads to an annualized dividend of $2.12, offering a dividend yield of 1.18%. Currently, Broadcom holds a payout ratio of 9.12%.

Insider Transactions

On other fronts, Director Gayla J. Delly sold 750 shares of Broadcom stock on September 25th, with a transaction value of approximately $130,897.50 at an average sale price of $174.53. Following this transaction, Delly retains 34,750 shares, valued approximately at $6,064,917.50. Also, CEO Hock E. Tan sold 50,000 shares on September 17th for about $8,168,500. Following this, he directly owns 1,331,910 shares worth about $217,594,136.70. Overall, insiders have sold 311,080 shares valued at $53,540,590 in the past three months, while they maintain a 2.00% ownership in the company.

Hedge Fund Activity

Large investors are actively managing their positions in Broadcom. For instance, Legend Financial Advisors Inc. increased their stake by 72.7% during Q1, now owning 19 shares worth $25,000. Additionally, Richardson Capital Management LLC acquired a new stake valued at $29,000, and Delta Asset Management LLC TN expanded their holdings by 242.9% with 24 shares worth $32,000. Hedge funds and similar institutional investors hold approximately 76.43% of Broadcom shares.

About Broadcom

Broadcom Inc. designs and supplies a range of semiconductor devices, focusing on complex digital and mixed-signal complementary metal oxide semiconductor products, and analog III-V products around the globe. The company operates mainly in two segments: Semiconductor Solutions and Infrastructure Software.

Considerations for Investors

As investors consider Broadcom shares, it's vital to review the insights provided by market analysts. Although many analysts currently favor Broadcom, it's worthwhile to look into other recommended stocks before making investment decisions.

Broadcom, Shares, Investment