Broadcom (NASDAQ:AVGO) Shares Up 1.7% - What's Next?

Broadcom Inc. (NASDAQ:AVGO) experienced a notable increase of 1.7% on Wednesday, with shares reaching a high of $175.39 and last trading at $171.01. During the day, the company saw 6,678,305 shares exchanged, representing a significant decline of 77% compared to the average trading volume of 28,924,539 shares. The stock had closed at $168.15 in the previous session.

Analyst Ratings Changes

Several research firms have recently updated their views on Broadcom. Truist Financial raised its price target from $204.00 to $205.00 while maintaining a "buy" rating in a report released on October 8th. On September 16th, TD Cowen upgraded Broadcom to a "strong-buy" rating. JPMorgan Chase & Co. also increased its price target from $200.00 to $210.00, designating the stock as "overweight" in a report from September 6th, where Benchmark also reaffirmed a "buy" rating with a $210.00 price target. Morgan Stanley raised their price goal from $176.00 to $180.00, giving the stock an "overweight" rating, also on September 6th. Currently, two analysts have assigned a hold rating, twenty-three have issued a buy rating, and one has given the stock a strong buy rating. MarketBeat's data reveals a consensus rating of "Moderate Buy" with an average price target of $195.96.

Broadcom Stock Performance

Broadcom boasts a market capitalization of $788.95 billion, with a price-to-earnings (PE) ratio of 148.58 and a price-to-earnings growth (PEG) ratio of 1.96. The company's debt-to-equity ratio stands at 1.02, with a quick ratio of 0.94 and a current ratio of 1.04. Broadcom's 50-day moving average price is $173.12, while its 200-day moving average is $162.12. The company recently released its earnings results on September 5th, reporting earnings of $1.24 per share, which surpassed the consensus estimate of $1.20 by $0.04. Broadcom's return on equity was 30.12%, with a net margin of 10.88%. The firm generated revenue of $13.07 billion for the quarter, exceeding analyst expectations of $12.98 billion, with revenue growth of 47.3% year-over-year. Analysts predict Broadcom will report an earnings per share (EPS) of 3.78 for the current year.

Broadcom Increases Dividend

In addition, Broadcom declared a quarterly dividend, paid on September 30th, to shareholders who were on record as of September 19th. The dividend was set at $0.53, reflecting a positive adjustment from the previous quarter. This translates to an annualized dividend of $2.12, corresponding to a yield of 1.26%. The dividend payout ratio (DPR) for the company is currently 184.19%.

Insider Activity at Broadcom

Recent insider activity includes CEO Hock E. Tan selling 150,000 shares on September 24th at an average price of $172.94, totaling $25,941,000. Post-sale, Tan owns 1,181,910 shares valued at approximately $204.39 million, indicating an 11.26% reduction in his holdings. Insider Charlie B. Kawwas also sold 15,950 shares at an average price of $181.44 on October 11th, totaling around $2.89 million, with a slight decrease of 2.12% in his holdings. In the last quarter, insiders collectively sold 311,080 shares worth $53,540,590. The insider ownership stands at 2.00%.

Institutional Investors Weigh In On Broadcom

Institutional investors and hedge funds have been actively adjusting their stakes in Broadcom. Indiana Trust & Investment Management CO increased its position by 39.5%, acquiring 53 shares valued at $85,000 after adding 15 shares during the second quarter. Similarly, Salem Investment Counselors Inc. enhanced its holdings by 2.9%, resulting in ownership of 2,712 shares worth $4.35 million. TTP Investments Inc. also increased its position by 5.1%, owning 3,237 shares valued at about $5.2 million. Cherrydale Wealth Management LLC raised its stake by 11.3%, now owning 354 shares worth $568,000. Finally, Prentice Wealth Management LLC lifted its stake by 17.5%, bringing its total to 710 shares valued at approximately $1.14 million. Overall, institutional investors hold 76.43% of Broadcom's stock.

About Broadcom

Broadcom Inc. designs, develops, and supplies a variety of semiconductor devices, with a focus on complex digital and mixed-signal complementary metal-oxide-semiconductor (CMOS) products and analog III-V based products worldwide. The company operates primarily in two segments: Semiconductor Solutions and Infrastructure Software.

Broadcom, Shares, Earnings