Broadcom Inc. (NASDAQ:AVGO) Short Interest Update

Broadcom Inc. (NASDAQ:AVGO) experienced a significant drop in short interest during January. As of January 15, the total short interest stood at 56,950,000 shares. This marks a reduction of 16.9% compared to the previous total of 68,550,000 shares recorded on December 31. Given the average daily trading volume of 28,120,000 shares, this results in a days-to-cover ratio of 2.0 days.

Broadcom Trading Update

On Thursday, shares of Broadcom saw an increase of $9.31, bringing the trading price up to $215.66. The trading volume on that day reached 42,362,976 shares, which exceeded the company’s average trading volume of 31,406,502 shares. The current fifty-day moving average price stands at $211.24, while the two-hundred-day moving average is $181.27. Broadcom has a market capitalization of $1.01 trillion, a price-to-earnings ratio of 175.91, a P/E/G ratio of 2.52 and a beta of 1.03. The company has seen a 52-week low of $117.43 and a 52-week high of $251.88. In terms of liquidity, the firm has a current ratio of 1.17, a quick ratio of 1.07, and a debt-to-equity ratio of 0.98.

Quarterly Earnings Performance

Broadcom's latest quarterly earnings report was released on December 12. The semiconductor manufacturer reported earnings per share (EPS) of $1.42, which was slightly above analysts' expectations of $1.39 by $0.03. The total revenue generated in that quarter was $14.05 billion, just below the consensus estimate of $14.07 billion. The company's return on equity was reported at 28.00%, with a net profit margin of 11.43%. Compared to the same quarter last year, the revenue has increased by 51.2%. Last year, during the same period, the company had an EPS of $0.98. Analysts predict Broadcom will deliver an EPS of 5.38 for the current fiscal year.

Dividend Increase Announced

Recently, Broadcom announced an increase in its quarterly dividend, which was paid out on December 31. Shareholders on record as of December 23 received a dividend of $0.59. This was a rise from the previous dividend of $0.53. The ex-dividend date was also December 23, and this reflects an annualized dividend of $2.36, yielding 1.09%. The payout ratio stands at 191.87%.

Future Growth Prospects

Several research analysts have shared their views on Broadcom. For example, Jefferies Financial Group raised its price target from $205.00 to $225.00 with a "buy" rating for Broadcom. Barclays also increased its price target from $205.00 to $260.00 and rated it as "overweight". Similarly, TD Cowen raised its target from $210.00 to $240.00 and maintained a "buy" rating. Bank of America moved its target price from $215.00 to $250.00, retaining the "buy" rating. Robert W. Baird increased its target from $195.00 to $210.00, also labeling it as "outperform". Overall, three analysts rated Broadcom as a hold, while twenty-four rated it as a buy, leading to a consensus rating of "Moderate Buy" and an average target price of $225.04 according to MarketBeat.com.

Insider Trading Activities

Recent insider trading at Broadcom included the sale of 20,168 shares by insider Mark David Brazeal on December 24. The shares were sold at an average price of $238.79, totaling approximately $4.8 million. This sale resulted in a 5.90% decrease in Brazeal's holdings, and he currently owns around 321,660 shares valued at $76.8 million. Additionally, on December 17, Director Harry L. You sold 6,540 shares for a total of $1.57 million, representing a 17.68% drop in his holdings. In total, insiders sold 191,278 shares valued at $44.96 million in the past quarter, with insiders owning about 2.00% of the firm's shares.

Institutional Investments

Recent activities from institutional investors show that several hedge funds have altered their positions in Broadcom. For instance, Valmark Advisers Inc. increased its holding by 3.2%, now owning 7,136 shares. MOKAN Wealth Management Inc. made a fresh purchase of shares valued around $7 million. Meanwhile, Copperleaf Capital LLC acquired a new stake worth approximately $257,000. Other firms such as VeraBank N.A. and MN Wealth Advisors LLC also adjusted their investments. Currently, institutional investors hold 76.43% of the company's stock, indicating strong institutional interest in Broadcom.

About Broadcom Inc.

Broadcom Inc. specializes in designing, developing, and supplying semiconductor devices, particularly focusing on complex digital and mixed-signal complementary metal-oxide-semiconductor (CMOS) devices and analog III-V based products. The company operates in two key segments: Semiconductor Solutions and Infrastructure Software.

Broadcom, Shares, Earnings, Dividend, Investing