Broadcom (NASDAQ:AVGO) Shares Rise 2.1% – Is It Time to Invest?

Broadcom Inc. (NASDAQ:AVGO) saw its share price increase by 2.1% in trading on Tuesday. The stock reached a peak of $240.23 before settling at $237.24. During the day, around 11,843,178 shares exchanged hands, which is significantly lower than the typical volume of 30,481,408 shares, marking a 61% drop. The previous closing price was $232.35.

Recent Analyst Ratings

Broadcom has been featured in several recent analyst reports. On December 13th, Benchmark reaffirmed a “buy” rating for the stock and raised its target price to $255.00 from $210.00. Similarly, Robert W. Baird increased its target price from $195.00 to $210.00 while maintaining an “outperform” rating. On December 3rd, HSBC Global Research upgraded Broadcom to a “hold.” In the same vein, Jefferies Financial Group boosted its price target from $205.00 to $225.00, also giving the stock a “buy” rating. Furthermore, Truist Financial raised its target from $205.00 to $245.00, maintaining a “buy” rating as well. A total of three analysts have rated Broadcom with a hold recommendation, while twenty-four have assigned a buy rating, resulting in a consensus rating of “Moderate Buy” with a consensus price target of $221.88 according to MarketBeat.com.

Broadcom’s Financial Metrics

The firm has a debt-to-equity ratio of 1.02, with a quick ratio of 0.94 and a current ratio of 1.04. Its market capitalization stands at $1.12 trillion, boasting a P/E ratio of 208.24 and a PEG ratio of 2.15, alongside a beta of 1.13. The company’s 50-day simple moving average is $183.03, while the 200-day simple moving average is $169.78.

On December 12th, Broadcom released its quarterly earnings report, showcasing earnings of $1.42 per share, slightly beating analysts' expectations of $1.39. The company's revenue reached $14.05 billion, just shy of the anticipated $14.07 billion, yet exhibiting a strong year-over-year increase of 51.2%. Analysts are projecting earnings of $3.79 per share for the current year.

Dividend Increase

Recently, Broadcom announced an increase in its quarterly dividend, which will be disbursed on December 31st. Shareholders who were on record by December 23rd will receive a dividend of $0.59 per share, up from a previous amount of $0.53. This change reflects an annualized dividend of $2.36, resulting in a dividend yield of 0.98%. The company’s payout ratio currently stands at 191.87%.

Insider Trading Activity

In insider news, Charlie B. Kawwas sold 15,950 shares of Broadcom on October 11th at an average price of $181.44, totaling approximately $2.89 million. Post-sale, he holds around 737,330 shares valued at about $133.78 million. Additionally, Director Harry L. You disposed of 6,540 shares on December 17th at an average price of $240.00, amounting to $1.57 million. He now owns 30,450 shares valued at $7.31 million, representing a 17.68% decrease in his stock ownership. Over the past three months, insiders have sold 91,670 shares worth around $16.63 million, with company insiders owning 2.00% of the stock.

Institutional Ownership Changes

Institutional investors have recently made adjustments to their Broadcom holdings. Notable purchases include Kiely Wealth Advisory Group Inc., which acquired a new stake valued at approximately $128,000, followed by Mark Sheptoff Financial Planning LLC with a position worth around $136,000. Semus Wealth Partners LLC and Palisades Hudson Asset Management L.P. have also secured new stakes worth about $202,000 and $204,000, respectively. Overall, institutional and hedge fund investors hold 76.43% of the company's stock.

Company Overview

Broadcom Inc. specializes in designing, developing, and supplying a range of semiconductor devices, focusing on complex digital and mixed-signal complementary metal oxide semiconductor-based devices and analog III-V products worldwide. The company operates through its two segments: Semiconductor Solutions and Infrastructure Software.

Broadcom, Stocks, Investment