Broadcom (NASDAQ:AVGO) Stock Price Up 2% on Analyst Upgrade

Broadcom Inc. (NASDAQ:AVGO) shares rose 2% during mid-day trading on Tuesday after Oppenheimer raised their price target on the stock from $265.00 to $305.00. Oppenheimer currently has an outperform rating on the stock. Broadcom traded as high as $283.36 and last traded at $281.03. Approximately 5,823,491 shares changed hands during mid-day trading, a decline of 79% from the average daily volume of 27,970,871 shares. The stock had previously closed at $275.60.

AVGO has been the topic of several other reports. Susquehanna raised their target price on Broadcom from $280.00 to $300.00 and gave the company a “positive” rating in a report on Friday, June 6th. Bank of America increased their price target on shares of Broadcom from $240.00 to $300.00 and gave the stock a “buy” rating in a research report on Friday, June 6th. Erste Group Bank raised shares of Broadcom from a “hold” rating to a “buy” rating in a report on Thursday, June 5th. JPMorgan Chase & Co. increased their price objective on shares of Broadcom from $250.00 to $325.00 and gave the stock an “overweight” rating in a report on Friday, June 6th. Finally, Barclays boosted their price target on shares of Broadcom from $215.00 to $265.00 and gave the stock an “overweight” rating in a research report on Monday, June 9th. One investment analyst has rated the stock with a hold rating, twenty-seven have assigned a buy rating and two have assigned a strong buy rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Buy” and an average target price of $291.88.

Insider Activity

In other Broadcom news, Director Gayla J. Delly sold 3,000 shares of the company’s stock in a transaction that occurred on Thursday, June 26th. The stock was sold at an average price of $265.13, for a total transaction of $795,390.00. Following the sale, the director owned 33,352 shares in the company, valued at $8,842,615.76. This represents a 8.25% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, insider Mark David Brazeal sold 50,000 shares of the firm’s stock in a transaction dated Monday, June 23rd. The stock was sold at an average price of $253.28, for a total transaction of $12,664,000.00. Following the completion of the transaction, the insider directly owned 415,956 shares in the company, valued at $105,353,335.68. This represents a 10.73% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 828,916 shares of company stock valued at $216,785,761 in the last quarter. Insiders own 2.00% of the company’s stock.

Hedge Funds Weigh In On Broadcom

Hedge funds and other institutional investors have recently modified their holdings of the stock. Sawyer & Company Inc boosted its position in Broadcom by 62.1% during the 2nd quarter. Sawyer & Company Inc now owns 94 shares of the semiconductor manufacturer’s stock worth $26,000 after acquiring an additional 36 shares during the period. Waddell & Associates LLC lifted its position in shares of Broadcom by 2.1% in the first quarter. Waddell & Associates LLC now owns 2,091 shares of the semiconductor manufacturer’s stock worth $350,000 after purchasing an additional 43 shares in the last quarter. Luts & Greenleigh Group Inc. lifted its position in shares of Broadcom by 1.3% in the second quarter. Luts & Greenleigh Group Inc. now owns 3,405 shares of the semiconductor manufacturer’s stock worth $939,000 after purchasing an additional 44 shares in the last quarter. Challenger Wealth Management boosted its holdings in shares of Broadcom by 1.3% during the first quarter. Challenger Wealth Management now owns 3,504 shares of the semiconductor manufacturer’s stock worth $587,000 after purchasing an additional 45 shares during the period. Finally, High Net Worth Advisory Group LLC grew its position in Broadcom by 1.7% during the second quarter. High Net Worth Advisory Group LLC now owns 2,671 shares of the semiconductor manufacturer’s stock valued at $736,000 after purchasing an additional 45 shares in the last quarter. Institutional investors and hedge funds own 76.43% of the company’s stock.

Broadcom Trading Up 1.9%

The company has a debt-to-equity ratio of 0.89, a quick ratio of 0.98 and a current ratio of 1.08. The stock has a market cap of $1.32 trillion, a price-to-earnings ratio of 105.22, a price-to-earnings-growth ratio of 1.96 and a beta of 1.12. The company’s 50 day simple moving average is $249.82 and its two-hundred day simple moving average is $219.20.

Broadcom (NASDAQ:AVGO) last posted its quarterly earnings results on Thursday, June 5th. The semiconductor manufacturer reported $1.58 earnings per share for the quarter, topping analysts’ consensus estimates of $1.57 by $0.01. The business had revenue of $15 billion for the quarter, compared to the consensus estimate of $14.98 billion. Broadcom had a net margin of 22.64% and a return on equity of 35.49%. Broadcom’s revenue for the quarter was up 20.2% compared to the same quarter last year. During the same period in the prior year, the business posted $10.96 earnings per share. Research analysts expect that Broadcom Inc. will post 5.38 EPS for the current fiscal year.

Broadcom Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, June 30th. Investors of record on Friday, June 20th were issued a $0.59 dividend. The ex-dividend date was Friday, June 20th. This represents a $2.36 dividend on an annualized basis and a yield of 0.84%. Broadcom’s dividend payout ratio is currently 88.39%.

Broadcom announced that its board has approved a stock buyback program on Monday, April 7th that allows the company to repurchase $10.00 billion in shares. This repurchase authorization allows the semiconductor manufacturer to purchase up to 1.4% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company’s leadership believes its stock is undervalued.

Broadcom Company Profile

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