Broadcom (NASDAQ:AVGO) Stock Experiences Minor Rise - What Lies Ahead?

On Friday, shares of Broadcom Inc. (NASDAQ:AVGO) increased by 0.5%. The stock hit a high of $182.71 before settling at $182.39. During the trading session, 4,756,222 shares were exchanged, which is a significant decline of 84% from its average trading volume of 30,601,725 shares. Previously, the stock closed at $181.53.

Changes in Analyst Ratings

• Broadcom's Targeted Upside Improves

Several research analysts have recently updated their ratings for Broadcom's stock. Oppenheimer lowered their target price from $2,000.00 to $200.00 while maintaining an "outperform" rating in a report dated July 16. Similarly, JPMorgan Chase & Co. raised their target price from $200.00 to $210.00 and issued an "overweight" rating on September 6. Morgan Stanley also increased their price target from $176.00 to $180.00 with an "overweight" rating. Meanwhile, Rosenblatt Securities decreased their target from $2,400.00 to $240.00, designating the stock as a "buy". Additionally, Bank of America reaffirmed a "buy" rating and raised the price target to $215.00 from $200.00 in a report dated June 24. In total, two analysts have issued a hold rating, twenty-four have given a buy rating, and one has assigned a strong buy rating. According to MarketBeat, Broadcom holds a consensus rating of "Moderate Buy" along with a consensus price target of $191.54.

Check Out Our Latest Research Report on AVGO

Broadcom's Price Performance

• Top 4 ETFs Riding the Semiconductor Market Boom

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

Recently, Broadcom reported its quarterly earnings on September 5. The semiconductor manufacturer achieved an earnings per share (EPS) of $1.24, exceeding the consensus estimate of $1.20 by $0.04. The company's revenue for the quarter was $13.07 billion, slightly higher than the market’s estimate of $12.98 billion. Broadcom posted a net margin of 10.88% and a return on equity of 30.12%. Their revenue saw an impressive increase of 47.3% compared to the same quarter last year, with the previous year showing an EPS of $0.95. Analysts project Broadcom will report an EPS of 3.78 for the current fiscal year.

Dividend Increase

• Top 3 Dividend-Paying Chip Stocks to Watch

The company also declared a quarterly dividend which was distributed on September 30. Shareholders who were on record by September 19 received a dividend of $0.53 per share, reflecting an increase from the prior dividend amount. The ex-dividend date for this payment was September 19. This translates to an annual dividend of $2.12 and a dividend yield of 1.18%. Broadcom's payout ratio is currently at 9.12%.

Insider Activity

In recent insider news, Director Gayla J. Delly sold 750 shares of the stock on September 25, fetching an average price of $174.53, amounting to a total of $130,897.50. After this transaction, the director retains ownership of 34,750 shares valued at approximately $6,064,917.50, marking no change in ownership percentage. This transaction was reported to the SEC. Moreover, CEO Hock E. Tan sold 50,000 shares on September 17 at an average price of $163.37, totaling $8,168,500. Following this sale, he continues to own 1,331,910 shares worth around $217,594,136.70, with no change in ownership percentage. In the last three months, insiders sold a total of 311,080 shares valued at $53,540,590. Currently, company insiders hold 2.00% of Broadcom's shares.

Hedge Fund Maneuvers

Recently, several large investors have modified their positions in Broadcom's stock. Legend Financial Advisors Inc. increased their ownership by 72.7% in the first quarter, now holding 19 shares valued at $25,000 after acquiring 8 additional shares. Richardson Capital Management LLC entered a new investment in Broadcom worth $29,000 in the same quarter. Delta Asset Management LLC TN raised its holdings by 242.9%, now owning 24 shares valued at $32,000 after purchasing an extra 17 shares. Redmont Wealth Advisors LLC also made a new investment worth $36,000 in Broadcom during Q1. Finally, Tsfg LLC dramatically increased its stake by 1,073.7% in Q3, now having 223 shares valued at $38,000 following the acquisition of 204 more shares. Together, hedge funds and institutional investors own approximately 76.43% of the company’s stock.

About Broadcom

(Get More Information)

Broadcom Inc. specializes in the design, development, and supply of various semiconductor devices, particularly focusing on complex digital and mixed signal devices as well as analog III-V based products across the globe. The company operates through two primary segments: Semiconductor Solutions and Infrastructure Software.

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This article was created using various financial data and research insights to provide readers with timely and accurate information. The content has been vetted for accuracy and completeness.

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